The six choices
| Choice | Who can pick it | What it means if you are hurt |
|---|---|---|
| Unlimited | Anyone | All reasonably necessary care, for life. Backed by the MCCA. |
| $500,000 | Anyone | Care stops at $500,000 per person per crash. |
| $250,000 | Anyone | Care stops at $250,000 per person per crash. |
| $250,000 with exclusions | When a household member has qualified health coverage other than Medicare | Excluded people get no PIP medical; their health plan pays. |
| $50,000 | Named insured on Medicaid; spouse and resident relatives have qualified health coverage, Medicaid or other PIP | Care stops at $50,000; Medicaid and other coverage take over. |
| No PIP medical | Named insured with Medicare Parts A and B; spouse and resident relatives have qualified health coverage or other PIP | No PIP medical at all. Medicare and other coverage pay. |
Source: MCL 500.3107c(1); MCL 500.3107d; MCL 500.3109a; DIFS auto insurance FAQ.
The choice limits only PIP medical (allowable expenses). Wage loss, replacement services and survivors’ loss are not affected.
What qualified health coverage means
MCL 500.3107d(7) defines qualified health coverage as either Medicare Parts A and B, or other health or accident coverage that does not exclude or limit auto injuries and has an individual deductible at or below a set amount. The amount started at $6,000 and is adjusted each July 1. According to DIFS, it is $6,579 for July 1, 2026 to June 30, 2027.
Many employer plans exclude or limit auto injuries. Ask your plan in writing before relying on it.
The risks of a limit
- Catastrophic injuries outrun the limit quickly. Trauma surgery, inpatient rehab and months of therapy can exceed $250,000 or $500,000. After that, care depends on health insurance, the at-fault driver’s coverage, or you.
- Health insurance does not cover what PIP covers. Family attendant care, home modifications, vehicle modifications and long-term residential care are PIP benefits that most health plans do not pay.
- Everyone in the household shares the choice. A child or relative living with you is bound by your limit if they have no policy of their own.
- Lapsed health coverage creates a gap. If an excluded person loses qualified health coverage, you have 30 days to get PIP medical coverage for them. If they are hurt after that window without coverage, they get no PIP medical benefits (MCL 500.3109a(2)(e), 3107d(6)(c)).
The at-fault driver can be sued for the excess
If your medical costs exceed your PIP limit and another driver caused the crash, MCL 500.3135(3)(c) allows a lawsuit against that driver for the allowable expenses above your limit. That claim is only as good as the driver’s liability coverage. See excess medical and wage claims.
The selection form
Insurers must use a DIFS-approved form that explains the benefits and risks of each level and is signed by the applicant (MCL 500.3107c(2)). If no valid selection was made, MCL 500.3107c(3) presumes the coverage matches the premium paid. If that presumption does not apply, MCL 500.3107c(4) makes the policy unlimited. After a crash, get a copy of the signed form. A missing or defective form can change the coverage.
We do not sell insurance. If you are choosing a level, an agent can price each option. If you were hurt and your level is in question, call us: 313.733.1204.
Sources: MCL 500.3107c; MCL 500.3107d; MCL 500.3109a; MCL 500.3135(3)(c); DIFS, Michigan auto insurance frequently asked questions.
Questions people ask us
What PIP coverage happens if I never signed a selection form?
If no valid selection was made and the presumption based on the premium you paid does not apply, MCL 500.3107c(4) says the policy provides unlimited PIP medical coverage.
Does the PIP limit apply to my whole family?
Yes. The limit you choose applies to you, your spouse, relatives living in your household and anyone else who claims PIP under the policy. Excluded household members with qualified health coverage get no PIP medical coverage under it.
Can I change my PIP level after a crash?
Not for that crash. The coverage in effect on the date of the accident controls the claim. You can change the level going forward, usually at renewal.