- Personal Injury Protection (PIP):
Personal Injury Protection (PIP) helps cover expenses that arise as a result of injuries sustained in an auto accident. In Michigan, PIP covers these expenses regardless of who caused the accident or who is at fault. The main coverage provided by PIP is for “allowable expenses,” also known as PIP AE. Allowable expenses are “reasonable charges incurred for reasonably necessary products, services and accommodations for an injured person’s care, recovery or rehabilitation.” This includes medical expenses and attendant care. Until July 1, 2020, in Michigan, your PIP AE coverage was Unlimited. That meant your auto accident-related medical expenses were paid for — for as long as they were reasonable and necessary for your care, recovery or rehabilitation. Now, PIP AE coverage options include Unlimited, $500k, and $250k, as well as lower coverage options for drivers with Qualified Health Coverage, Medicaid, or Medicare parts A and B.
- Bodily Injury Liability (BI):
In Michigan, Bodily Injury coverage helps to protect you if you are at fault for an auto accident that causes serious injury or death of another person. It covers the other person’s pain and suffering damages, excess medical expenses, and excess wage loss benefits. The minimum BI coverage limits are currently $50k per person/$100k per accident. However, the default BI coverage limits are $250k per person/$500k per accident. If you opt to choose BI coverage limits lower than the default, you’ll have to fill out a form that says you know the risks that come with choosing lower BI coverage limits.
- Property Protection Insurance (PPI):
Property Protection Insurance is a mandatory no-fault coverage that covers up to $1 million for damage your car causes in Michigan to the property of others (such as buildings, light poles, and fences) and to another person’s properly parked vehicle.
Property Damage insurance is a mandatory no-fault coverage that covers damage your car causes to someone else’s property (such as light poles, fences, and vehicles) in another state. The minimum PD coverage limit is $10,000, with higher limits available.