Michigan No-Fault Insurance: Your PIP Choices Explained

Michigan’s auto insurance system changed dramatically in 2019, when Public Acts 21 and 22 gave drivers something they’d never had before: a choice over their Personal Injury Protection (PIP) medical coverage. If you’ve renewed your auto policy since July 2020, you’ve faced this decision — but many drivers still aren’t sure what they picked, or whether it’s the right call.

Here’s what each option actually means.

The 6 PIP Medical Options

Under Michigan law (MCL 500.3107c), you choose one of six PIP medical coverage levels:

  1. Unlimited — the pre-reform standard. No cap on reasonably necessary medical expenses from an auto accident.
  2. $500,000 per person per accident
  3. $250,000 per person per accident
  4. $250,000 with named exclusions — the $250,000 limit applies, but certain household members with their own qualifying health coverage can be excluded from your PIP.
  5. $50,000 per person per accident — only available if the named insured is enrolled in Medicaid.
  6. Opt-out — only available if the named insured has Medicare Parts A and B, and all household relatives have qualifying health coverage or their own auto policy with PIP.

The MCCA Fee

Every Michigan policy includes a Michigan Catastrophic Claims Association (MCCA) per-vehicle assessment, set annually by the MCCA — but how much you pay depends on your PIP choice. The fee has two parts: a pure premium (paid only by drivers who select unlimited PIP, covering catastrophic claims) and a deficit recoupment charge (paid by all drivers when the MCCA’s liabilities exceed its assets).

For the current period (July 1, 2026 – June 30, 2027), the assessment is $84 per vehicle for unlimited PIP ($65 pure premium + $19 deficit recoupment) and $19 per vehicle for all other PIP levels (deficit recoupment only) — far below the $220 per vehicle all drivers paid before the 2019 reforms. So choosing a capped PIP level doesn’t eliminate the fee, but it does cut it substantially.

Don’t Forget Bodily Injury Liability

The reform also changed bodily injury liability. The default is now $250,000 per person / $500,000 per accident, though you can select as low as $50,000/$100,000 (MCL 500.3009). Given Michigan’s accident costs, most drivers are better served staying at or above the default.

Mini-Tort: Up to $3,000

Michigan’s “mini-tort” rule (MCL 500.3135) lets you recover up to $3,000 from the at-fault driver for vehicle damage your own policy doesn’t cover — raised from the old $1,000 limit under the reform.

How to Choose

There’s no one-size-fits-all answer, but consider:

The Bottom Line

Michigan’s PIP choice is genuinely confusing, and the wrong pick can cost you — either in wasted premium or in uncovered medical bills after a crash. You don’t have to figure it out alone.

Call or text Ayesh Insurance Agency at 734-419-1267 for a free, no-pressure review of your current PIP selection. We’ll walk through your options and make sure your coverage actually fits your life.

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