Under Michigan’s new auto insurance law, one option for Personal Injury Protection (PIP) coverage is to purchase a $50,000 policy if you meet the following criteria:
the named insured is enrolled in Medicaid, and
any spouse and resident-relatives of the named insured are also covered under Medicaid or under a qualified health insurance plan with a less than $6,000 deductible or have PIP coverage under a separate auto insurance policy.
If you select this option, your auto insurance company will pay up to $50,000 per person, per accident. This limited/capped coverage would not be enough to cover your medical costs or provide access to care if you or your loved ones were seriously injured and reliant on the Medicaid system. Before you consider this option, it's important to understand what benefits are not available under Medicaid but may be needed should you or someone you love suffer severe injuries in a motor vehicle crash. Below, take a look at the differences between Medicaid and the Lifetime/Unlimited PIP coverage. You can also download the chart here.
