Michigan Auto Insurance Reform

What's changing?

The state of Michigan currently requires individuals to purchase unlimited personal injury protection, or PIP, through their auto insurer. Starting July 1, 2020, under certain circumstances outlined in the new law, individuals may select different levels of PIP coverage as follows:

  • Opt out ($0)
  • $50,000
  • $250,000
  • $500,000
  • Unlimited

How does this affect you?

  • Blue Cross Blue Shield and Blue Care Network Customers
    • Medicare Advantage Plans: If a Medicare Advantage enrollee opts out of PIP coverage, medical expenses as a result of an automobile accident will be covered. Other PIP benefits such as transportation to and from medical appointments, vehicle modifications, long-term and custodial care, and household services will not be covered.
    • Individual and Fully Insured Group Plans: Blue Cross and BCN already pay primary on auto accident-related medical claims for their individual and fully insured group plans. Members may still want to purchase PIP coverage because it also pays for items that health insurance doesn’t, such as attendant care, lost wages and vehicle or housing modifications.1
  • Priority Health Customers
    • Medicare Plans:  A member can opt out of PIP coverage altogether.
    • Individual and Employer-Sponsored Plans: If a member is in a plan that covers auto injuries and has an individual deductible of $6,000 or less, they can opt out of PIP altogether. To determine if a member has Qualified Health Coverage (QHC), they can call or email customer service. If they would like to opt-out of PIP coverage they can request QHC documentation from customer service and a letter will be printed on-demand and mailed to them. Only members who choose to opt-out of PIP completely are required to provide proof of coverage.2

Members should direct specific questions about PIP coverage to their auto insurer.


1. Blue Cross Blue Shield of Michigan. (2020). Frequently asked questions for customers: Public Acts 21 and 22 of 2019. 

2. Priority Health. (2020). Navigating Michigan's auto insurance reform. Retrieved from https://www.priorityhealth.com/landing/auto-insurance-reform