Michigan Auto Reform Personal Injury Protection Allowable Expenses (PIP AE) Coverage Options

Today, every driver in Michigan is required to have unlimited PIP AE coverage on their policy. When certain parts of Michigan’s new auto insurance reform law takes effect on July 2, 2020, you’ll be able to choose from different levels of PIP AE coverage*, each of which the PIP AE premium is less expensive than today:
 
OPTIONS AVAILABLE TO EVERYONE

  • Unlimited1: 10% average savings
  • $500,000 limit: 20% average savings
  • $250,000 limit: 35% average savings
OPTIONS AVAILABLE TO ELIGIBLE INDIVIDUALS WITH QUALIFIED HEALTH
COVERAGE, MEDICAID OR MEDICARE
  • $250,000 limit with PIP exclusion2** – Based on Meemic Insurance Company’s intended product offerings, individuals who purchase this option will not be eligible for any PIP allowable expenses: 100% average savings
  • $50,000 limit – Medicaid only3: 45% average savings
  • Allowable Expenses Exclusion – Medicare4 Only: up to 100% average savings

* Please note that certain PIP coverage options have eligibility requirements that apply to the named insured and all resident relatives and may vary depending on the option. Please see the No-Fault Act for complete details. This summary is being provided for general information purposes only. Subject to regulatory approval. Coverage is subject to eligibility, terms, conditions, exclusions and limitations.
 
1 Unlimited: Insured may select unlimited PIP AE Coverage with MCCA involvement. This is the coverage required by law in Michigan prior to No-Fault Reform.
 
2** $250,000 PIP Exclusion: Individuals who qualify for this option will not be charged a PIP premium by their auto insurer. If an individual chooses this option, and they are injured in an automobile accident, their medical benefits will be covered by their Qualified Health Coverage (QHC) provider. Individuals who purchase this option will not be eligible for PIP Allowable Expenses.  QHC is health or accident insurance that does not exclude or limit coverage for injuries related to auto accidents and has a deductible of $6,000 or less per person.  Insureds who have QHC or their spouse or resident relative(s) in the same household who have QHC, or are enrolled in Medicare Parts A and B are eligible. If not all household residents are eligible, it is still possible to elect this option, with the exclusion applying only to eligible individuals.
 
3 Allowable Expense $50,000 – Medicaid Only: Allowable Expenses coverage option for insureds enrolled in Medicaid.  A spouse and/or resident relative(s) in the same household must also be enrolled in Medicaid, be enrolled in Medicare Parts A and B, have other PIP Allowable Expenses coverage or have QHC.
 
4 Allowable Expenses Exclusion – Medicare Only: In order to choose a $0 limit, an insured must be enrolled in Medicare Parts A and B. However, a spouse and any resident relative(s) in the same household must also be enrolled in Medicare Parts A and B, have other PIP Allowable Expenses coverage, or have QHC. Insureds will be required to provide documentation showing that they, their spouse, and any resident relative(s) are eligible in order to elect this option.

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