Michigan requires every vehicle registered and operated in Michigan to have automobile insurance. Three coverages are mandatory. Bodily Injury Liability coverage; Personal Injury Protection (PIP); and Property Protection, are all mandatory.
PIP insurance coverage has three components of coverage. Medical; lost wages; and replacement services are the three types of damages you collect from your own insurance policy.
Lost wages are paid to you if you are injured in an accident and your doctor disables you from performing your job. Lost wages are paid under this coverage for up to three years from the date of the accident that you remain disabled. If your disability continues longer than that you may have to pursue a claim against the other party if they were at fault for your injury. There is also a ceiling on monthly lost wages that changes annually.
Replacement services are household services that you cannot perform because of injuries received in an accident. The maximum paid is up to $20.00 per day for up to three years from the date of the accident. A family member can provide the service and you do not have to pay them as long as they have an expectation to be paid from the insurance company.
I saved the third benefit for last as it is the most complex. Your auto insurance pays for all medical bills you incur of any kind to treat injuries you receive from an accident. You can elect to make health insurance primary and your auto insurance secondary. Before July 2, 2020 medical was an unlimited, life-time benefit. That is no longer the case. You can now elect to reduce what your insurance company pays for your medical treatment. You can reduce it to as low as $250,000.00 by advising your agent you want that lower amount. You can even elect a lower amount or eliminate it all together if you and/or your family are on Medicare or Medicaid and meet other restrictions. I advise my clients and those who ask to keep the life-time unlimited coverage. Call me and I would be happy to explain why.