Do I Qualify to Remove PIP Coverage Under Michigan Law?

Aug 2, 2022 | Insurance FAQs

Do you want to know if you qualify to opt out of PIP coverage on your auto insurance policy? What determines if you qualify? Personal Injury Protection (PIP) used to be mandatory. This proved time and time again to be quite expensive for Michiganders.

Let’s go over the PIP coverage options offered under the reform provided by Michigan.gov:

  1. Unlimited coverage
  2. $500,000 per person per accident
  3. $250,000 per person per accident
  4. $250,000 per person per accident with exclusions
    To select this option, one or both of the following must be met:
    • The named insured who is excluding PIP medical has qualified health coverage that is not Medicare; AND
    • Any resident relative or spouse who is excluding PIP medical has qualified health coverage
  5. $50,000 per person per accident
    To select this option, both of the following must be met:
    • The applicant or named insured is enrolled in Medicaid; AND
    • Any spouse and all resident relatives have qualified health coverage, are enrolled in Medicaid, or are covered under another auto policy with PIP medical coverage.
  6. No PIP medical coverage
    To select this option, both of the following must be met:
    • The applicant or named insured has coverage under both Medicare Parts A and B; AND
    • Any spouse and all resident relatives have qualified health coverage or are covered under another auto policy with PIP medical coverage.

Our owner, Pat Brennen, talks about who qualifies to opt out of PIP coverage under Michigan law.

Do I Qualify to Remove PIP Coverage Under Michigan Law? – Entrust Insurance, St. Clair Shores

Video Transcription

“Based on health insurance two types of people can, those that are on Medicare Part A and Part B, you can then opt out of that coverage if you are covered through a standard personal work health plan, and that particular health plan meets the requirements to be considered a qualified health coverage plan, which means your deductible is less than $6,000 and the plan does not limit or exclude coverage to auto-related injuries than that is considered a qualified health care plan. The Medicare is easy, you just send us your Medicare card. If it lists A and B on there, that’s all that we need. If you have a qualified or another health care plan, you have to contact your health insurance provider. Ask them to provide you with a letter if it’s qualified. And you would just simply state I’m looking into auto insurance. And I need to know if my health plan is qualified under Michigan State law. And if it is, they’ll send you a letter, that letter we send into the auto insurance company and that validates that you can exclude that coverage.”

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