How Important is “PIP” Auto Coverage?

Picture of a document that says "Insurance Policy: Terms and Conditions" with a pen, phone, pair of glasses, and calculator on top.

Recent changes to Michigan’s automobile no-fault insurance laws have resulted in a lot of confusion. You may have a multitude of questions, like what is personal injury protection coverage (“PIP”)? Why is it important? But don’t worry, we have you covered.

Before we answer your questions, we recommend reading our most recent blog on third-party car accident claims and Michigan’s no-fault laws[1] —it will provide you with a better insight on what’s to follow.

What is PIP?

In no-fault states, personal injury protection coverage (PIP) is used to help cover injuries that a driver or passenger may sustain, regardless of fault. PIP is designed to help those injured get paid faster, usually within 30-60 days following the accident. However, it does not cover property damage.

PIP can cover things like:

  • Medical expenses - PIP can cover ambulance services, medication, surgical treatments, and many more.
  • Funeral expenses - If the accident resulted in a death, PIP can help cover funeral expenses.
  • Lost wages - In the case you can no longer work due to your injuries, PIP can assist with covering lost wages.
  • Substitute services - PIP can cover household services, like a cleaning service, to help perform household chores while you recover.

Why Is “PIP” Important?

With some exceptions, most Michigan residents are required to have PIP coverage on their motor vehicles. Currently, motorists can chose from different levels of coverage, from as low as $50,000 to as high as “unlimited” coverage (although the benefits must be reasonable and related to the crash). . PIP can also pay for lost wages and required services around the household which can help the injured person recover better.

Sadly, even a high amount of PIP coverage may not be enough. Some life-altering injuries can require hundreds of thousands of dollars’ worth of compensation in order to recover fully. This is why we recommend seeking out a car accident attorney to help you achieve the compensation PIP cannot cover.

Michigan Car Accident Attorneys

When PIP isn’t enough, it may be time to file a personal injury claim. If this situation applies to you, give Grewal Law PLLC a call today. We can assist you with all of your car accident needs to help you get the compensation you deserve. When you’re ready, contact our legal firm at (888) 211-5798 or visit our website to request a free consultation with one of our attorneys.

link to supporting #1

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