What is Personal Injury Protection Coverage in Michigan? How Does PIP Affect You Following an Auto Accident?
Imagine you are driving home after a long day from work when another vehicle crashed into you. You wake up in a hospital with minor injuries from the crash. You will have to miss work and continue treatment for your injuries. You are probably thinking can I seek compensation for the injuries I sustained in the accident as well as lost wages for time I will miss from work? Here we will explore how personal injury protection (“PIP”) coverage can help with compensation.
What is the PIP Benefit?
Generally, you need to understand that under Michigan's No Fault Law, there are certain medical benefits that you can receive from an auto insurance policy when there is an auto accident. Among these benefits is the PIP benefit. The PIP coverage is an auto insurance policy that covers all medical expenses, wages lost or any mileage to and from your doctor and others where you got hurt in an auto accident.
How does the PIP Benefit work?
PIP coverage does not consider whether you are at fault or otherwise in an auto accident as guaranteed and provided for under the Michigan's No Fault Law. Meaning once you get involved in a car accident, your auto insurance company must pay the PIP benefits.
PIP benefit may also cover household services, survivor's benefits, attendant care and the traveling expenses to and from appointments with the doctors treating you. Unlimited PIP coverage is the best option as it can provide unlimited PIP benefits for years.
The Types of PIP Coverage
Following the reform on auto insurance in Michigan, there are now six levels of coverage provided by the PIP benefit under the new law. You need to understand that these six levels of PIP are the most at which auto drivers can pay for each person per accident where the person is injured.
The first level of PIP coverage is unlimited coverage available for all drivers.
The second and the third levels are the 500,000 dollars and 250,000 dollars limits in coverage respectively for all drivers.
The fourth is the 250,000 dollars in coverage and a medical exclusion on the PIP. The medical exclusion is made available for names insured under the non-medicare health coverage provided for injuries from auto accidents or households.
The fifth is up to 50,000 dollars in coverage for insured names enrolled in Medicaid and their household members are insured under another health insurance policy, which covers injuries from auto accidents.
The sixth level is the opt-out entirely from PIP coverage provided that your relatives or spouse living with you have Medicare or other qualified health health coverage for you to be eligible to opt-out.
It should be noted that if you choose any Personal Injuries Protection coverage, the unlimited PIP coverage will by default be selected for you.
Contact an Experienced Michigan Car Accident Lawyer
If you or a loved one is injured in a Michigan traffic accident, we can help. While we cannot guarantee the end result, we can promise that we will act as dedicated and committed advocates in your case.
Our experienced lawyers have the skills, knowledge and resources to win the compensation you and your family deserve. The process following a car accident is complicated, but finding the right auto accident injury attorney does not have to be.
Call Cotter Law at 865-888-7155, send an email to attorney@cotter-law.com or simply fill out the form below for a free consultation.
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