Allowable expenses are reasonable charges incurred for products, services and accommodations that are necessary to treat a person’s automobile accident-related injuries. Allowable expenses include, but are not limited to, medical expenses, attendant care expenses, vehicle/home modification expenses, case management expenses and limited funeral/burial expenses. Currently, Personal Injury Protection (PIP) coverage includes unlimited allowable expenses coverage, but as of July 2, 2020, other PIP Allowable Expenses (PIP AE) coverage options will also be available.

Choosing PIP Medical Coverage (Michigan.gov)

Bodily Injury (BI) coverage is liability insurance coverage that applies to claims made against an insured person in the event that the insured person is at fault for an automobile accident that injures another person. Currently, an injured person can make BI claims for non economic damages (i.e. pain and suffering) and excess work loss against the person at fault for an automobile accident. As of July 2, 2020, an injured person will also be able to make BI claims for PIP Allowable Expenses (PIP AE) in excess of his or her PIP AE limit against the person at fault for an automobile accident.

Choosing Bodily Injury Coverage (Michigan.gov)

Currently, the Michigan Catastrophic Claims Association (MCCA) fee is applied to every insured vehicle in Michigan. MCCA fees are pooled to provide unlimited PIP Allowable Expenses (PIP AE) coverage for people injured in automobile accidents in the event that they incur Personal Injury Protection (PIP) expenses above a set statutory threshold (currently $580,000). The MCCA fee is currently $220 per vehicle, per year. As of July 2, 2020, the MCCA fee will drop to $100 per vehicle, per year for drivers with Unlimited PIP AE coverage and $0 for drivers with lower PIP AE limits.
Learn More about the MCCA (MichiganCatastrophic.com)

Medicaid provides health coverage to low-income people. As of July 2, 2020, people who are enrolled in Medicaid will be eligible to elect a PIP Allowable Expenses (PIP AE) limit of $50,000. If a person elects the $50,000 PIP AE limit and is injured in an automobile accident, the person will be eligible to receive up to $50,000 in PIP AE benefits from his or her automobile insurer. If the person incurs more than $50,000 in PIP AE, the person will look to Medicaid to cover his or her medical expenses in excess of the $50,000 PIP AE limit.

Medicare is a federal health insurance program that provides health coverage to people over 65 years old and disabled people under 65 years old, regardless of income. As of July 2, 2020, people who are enrolled in Medicare parts A and B will be eligible to opt out of Personal Injury Protection Allowable Expenses (PIP AE) coverage.

Personal Injury Protection (PIP) is a required part of automobile insurance coverage in Michigan. PIP benefits pay for a person’s allowable expenses, work loss, essential services and survivor’s loss if the person is injured in an automobile accident.

The Personal Injury Protection Allowable Expenses (PIP AE) coverage option called “$250,000 Limit with PIP AE exclusion,” allows people with Qualified Health Coverage (QHC) to opt out of PIP AE coverage.

Some automobile insurance policies may impose a deductible on a claim for Personal Injury Protection (PIP) benefits. An insured person is responsible for paying his or her allowable expenses up to the deductible amount before his or her automobile insurer is required to make payments.

Qualified Health Coverage (QHC) is health or accident insurance coverage that does not exclude or limit coverage for automobile accident-related injuries and has a deductible of $6,579 or less per person. As of July 2, 2020, people with QHC will be eligible to opt out of Personal Injury Protection Allowable Expenses (PIP AE) coverage.

Uninsured motorist coverage is an optional supplemental insurance coverage that compensates an insured person when he or she is unable to recover damages from an at-fault driver who is uninsured.

Underinsured motorist coverage is an optional supplemental insurance coverage that compensates an insured person when an at-fault driver’s bodily injury liability limit is less than the actual bodily injury damages incurred by the insured person.

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