What the statute allows
MCL 500.3135(3)(c) keeps the at-fault driver liable for allowable expenses, work loss and survivor’s loss, including all future allowable expenses and work loss, in excess of the PIP limit you selected under MCL 500.3107c or the daily, monthly and three-year limits in the benefit sections. These are called excess economic damages.
Before the 2019 reform, most Michigan drivers had unlimited lifetime PIP medical coverage, so excess medical claims were rare. Now many people carry $250,000 or $500,000 in PIP medical coverage, some carry $50,000 through the Medicaid option, and some have opted out entirely. When serious injuries exhaust those limits, the excess claim becomes the main way to pay for future care.
| What PIP stopped paying | What you can claim from the at-fault driver |
|---|---|
| Medical and care costs after your PIP limit ($50,000, $250,000 or $500,000) is used up | Allowable expenses above the limit, past and future |
| No PIP medical coverage because you opted out with Medicare Parts A and B (MCL 500.3107d), or an exclusion under MCL 500.3109a(2) applies | Allowable expenses without a PIP-based limit |
| Income above the monthly cap ($7,455 per 30 days for accidents from October 1, 2026 through September 30, 2027) | The income above the cap |
| Income lost after the three-year PIP period ends | Future lost earnings for as long as the injury keeps you from working |
| Survivors’ loss above the statutory limits after a death | The excess, in the wrongful death claim |
| Replacement services after three years or above $20 a day | Not recoverable (Johnson v Recca, 2012) |
Excess wage loss
PIP pays 85% of gross income, up to the monthly cap, for up to three years after the crash (see wage loss benefits). Higher earners lose the amount above the cap from the first month. Anyone still disabled after three years loses everything from that point. Both are claims against the at-fault driver.
The statute gives the at-fault party a reduction equal to the taxes that would have been payable on the income you would have earned. Proving future lost earnings usually requires employment records, tax returns, a treating doctor’s opinion on work capacity, and sometimes a vocational or economic witness.
Excess medical expenses
Allowable expenses are reasonable charges for reasonably necessary products, services and accommodations for your care, recovery or rehabilitation. When PIP stops, that category of loss shifts to the at-fault driver. For catastrophic injuries the future portion is often the largest part of the case: attendant care, therapy, equipment, medications and home modifications for decades. A life care plan prepared by a qualified professional is often used to prove those future costs.
Check whether the 2019 changes even apply to you. People injured while covered by a policy issued before June 11, 2019 keep the older rules for the life of that claim under Andary v USAA (Michigan Supreme Court, July 31, 2023). See Andary explained.
No threshold for Michigan residents
You do not need to prove a serious impairment to bring an excess economic claim if you are a Michigan resident. Nonresidents can recover economic loss only if they meet the threshold (MCL 500.3135(3)(d)). Comparative fault still reduces the award by your share of fault.
The practical limit: insurance
A large excess claim is only as collectible as the at-fault driver’s bodily injury coverage and assets, plus your own underinsured motorist coverage. The default bodily injury limit is $250,000 per person, and drivers can choose as little as $50,000. See finding all available coverage.
File within three years of the crash. The excess claim is a tort claim with a three-year limitations period (MCL 600.5805(2)), even though PIP may still be paying when that deadline arrives. Do not wait for PIP to run out before acting.
Sources: MCL 500.3135(3)(c), (3)(d); MCL 500.3107(1); MCL 500.3107c; MCL 500.3107d; MCL 500.3109a(2); Johnson v Recca, 492 Mich 169 (2012); Andary v USAA (Mich, July 31, 2023); MCL 600.5805(2); DIFS Bulletin 2026-20-INS.
Questions people ask us
Can I sue the at-fault driver for medical bills PIP did not pay?
Yes, for allowable expenses above the PIP coverage level that applies to you. If you validly opted out of PIP medical coverage, or an exclusion under MCL 500.3109a(2) applies, the claim for medical expenses against the at-fault driver has no limit tied to PIP.
Do I need to prove a serious impairment to claim excess wage loss?
Not if you are a Michigan resident. The serious impairment threshold in MCL 500.3135(1) applies to non-economic damages. Nonresidents suing for economic loss must meet the threshold under MCL 500.3135(3)(d).
Can I recover household help from the at-fault driver after PIP ends?
No. In Johnson v Recca (2012) the Michigan Supreme Court held that replacement services are not among the categories of excess damages the statute allows.
Is excess wage loss reduced for taxes?
Yes. The statute gives the at-fault party a reduction equal to the taxes that would have been payable on the income you would have earned.