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PIP Choice, what in the world does this mean?

By February 21, 2020April 14th, 2022No Comments

Personal Injury Protection, or simply put PIP, has been unlimited medical coverage since its inception in 1973. Now you tell me I get to choose my own limit?! Ok, so what are my choices and how do I know what is right for me?

This week we are going to dive into the first PIP medical choice you will be afforded under No-Fault Reform, starting on July 2, 2020. There are six options to choose from and some have different qualifications. Each auto insurance policy in the State of Michigan will receive a Medical Selection of Personal Injury Protection form to complete prior to your renewal. The first option is:

Unlimited Coverage

  • This is the coverage you already have on your current auto insurance policy. So, it is what you are used to.
  • The Michigan Catastrophic Claims Association fee will be reduced from $220 per vehicle to $100 per vehicle. So automatically $120 per vehicle savings per year.
  • On average, a 10% premium savings on PIP medical cost on your policy. NOT THE ENTIRE POLICY.  I repeat, not 10% savings on your entire auto insurance costs, just that one line item.
  • Unlimited medical covers things your health insurance limit, or don’t cover at all. Two examples are Rehabilitation Services and Attendant Care.
  • Avoid paying deductibles, co-insurance, and co-pays that you would have if your health insurance paid your medical bills from the injury.
  • Highest cost of any of the options.

So as you can see, there are many benefits to keeping unlimited medical coverage on your auto policy.  How will you know if this is right for you? First, make sure to read our additional blogs to learn about the other five options. Second, contact our office with your specific questions and let us help you make an educated decision.