Critical Hits
Michigan Auto Insurance: Why Unlimited PIP and UM/UIM Coverage Are Critical
Michigan’s auto insurance system has undergone many changes in recent years, and with those changes comes a greater responsibility for drivers to make informed choices about their coverage. Two of the most important decisions you make when purchasing or renewing your policy are your Personal Injury Protection (PIP) election and whether you carry Uninsured/Underinsured Motorist (UM/UIM) coverage.
As an attorney practicing in Michigan, I strongly encourage drivers to elect unlimited PIP coverage and to ensure they carry robust UM/UIM protection. Here’s why.
The Value of Unlimited PIP Coverage
PIP is at the heart of Michigan’s no-fault system. It pays for medical care, rehabilitation, and other benefits if you are injured in an auto accident—regardless of fault. Under Michigan’s reform, you now have options to limit your PIP coverage. But just because you can choose lower coverage doesn’t mean you should.
Medical costs are unpredictable. Even a moderate injury can lead to six-figure medical bills. Severe injuries—like spinal damage, brain trauma, or multiple surgeries—can quickly exceed capped coverage levels.
Unlimited PIP provides peace of mind. You don’t have to worry about what happens if your benefits run out. The last thing you want after a devastating accident is a financial crisis.
Coordination with health insurance is not always smooth. Some assume their health insurance will “pick up the slack.” In reality, private health plans often limit rehabilitation, don’t cover long-term attendant care, and may have significant deductibles or co-pays.
In short, unlimited PIP ensures that your medical and recovery needs are fully covered—without financial guesswork.
Why UM/UIM Coverage Is Essential
Unlike PIP, UM/UIM coverage is optional in Michigan. But in my opinion, it is one of the most vital protections you can carry.
Uninsured drivers are out there. Despite mandatory insurance laws, many Michigan drivers operate vehicles without any coverage. If you’re hit by one, you may have no way to recover for your pain and suffering or excess medical and wage losses.
Underinsured drivers are even more common. Michigan only requires $250,000 in bodily injury liability coverage (with an option to go lower). In a serious accident, those limits are quickly exhausted. UM/UIM coverage steps in to cover the difference when the at-fault driver’s policy isn’t enough.
Protecting yourself and your family. You can’t control who hits you or how much insurance they carry. UM/UIM ensures that you and your loved ones are not left uncompensated simply because the negligent driver was irresponsible.
In my practice, I’ve seen firsthand how UM/UIM coverage makes the difference between a client being able to recover fully versus facing financial devastation.
Final Thoughts
Auto insurance is one of the most important investments you can make in your own safety and security. While the law allows Michigan drivers to choose lower levels of PIP and to skip UM/UIM coverage altogether, the risks far outweigh the savings.
Unlimited PIP coverage ensures your medical and rehabilitation needs are fully covered—no matter the extent of your injuries.
UM/UIM coverage ensures that if you’re hit by someone with little or no insurance, you still have recourse.
When it comes to protecting yourself and your family on Michigan roads, these coverages are not just advisable—they are essential.
Protect Yourself Today
At Shkreli Legal, we work with individuals and families every day who are navigating the aftermath of serious auto accidents. Too often, we see the consequences of limited coverage firsthand. Don’t leave your future to chance.
Call us today to schedule a consultation to learn more about how we can help you.
