--- title: "How Much Car Insurance Do I Need Under the New Michigan No-Fault Law?" url: https://callsam.com/blog/choosing-car-insurance-coverage-amounts/ description: "Michigan PIP medical options range from unlimited to opt-out for some Medicare households. See $50k/$100k liability minimums and UM/UIM." lastModified: 2026-09-18 --- # How Much Car Insurance Do I Need Under the New Michigan No-Fault Law? Published: July 8, 2020 Michigan’s [No-Fault](https://callsam.com/michigan-no-fault-law/) law is complicated, especially with so many coverage choices. Since July 1, 2020, drivers choose a Personal Injury Protection (PIP) **medical** level. They also choose residual liability limits and, usually, uninsured and underinsured motorist coverage. Our [car accident lawyers](https://callsam.com/case-types/car-accidents/) cannot replace your insurance agent, but we can explain how those choices affect a claim. Here is a guide to the main options. ## PERSONAL INJURY PROTECTION (PIP) COVERAGE OPTIONS PIP still includes work loss, replacement services and survivor’s benefits, subject to the statute. Since July 1, 2020, you choose how much **PIP medical** you want. There are six medical options: ### Option 1 — Unlimited PIP medical (the old default) Pays allowable medical and related expenses for care, recovery and rehabilitation, including many items ordinary health insurance does not cover, with no dollar cap. ### Option 2 — $500,000 PIP medical Up to $500,000 per injured person per accident for medical and related expenses. ### Option 3 — $250,000 PIP medical Up to $250,000 per person per accident. ### Option 4 — $250,000 PIP medical with exclusions You may exclude yourself, a spouse or a resident relative from PIP medical if that person has other qualified health coverage (not Medicare or Medicaid) that covers auto-accident injuries. Excluded people have no PIP medical on this auto policy. ### Option 5 — $50,000 PIP medical (Medicaid households) Available only if the named insured is on Medicaid, and the spouse and resident relatives have qualified coverage for auto injuries (Medicaid, other health insurance or another auto policy with PIP medical). ### Option 6 — No PIP medical Available only if the named insured has Medicare Parts A and B, and the spouse and resident relatives have [qualified health coverage](https://www.michigan.gov/documents/autoinsurance/FIS-PUB_6350_685280_7.pdf) for auto injuries (including another auto policy with PIP medical). ## HOW DO I DECIDE HOW MUCH CAR INSURANCE I NEED? There is no one-size-fits-all [Michigan No-Fault](https://callsam.com/michigan-no-fault-law/) policy. Weigh each option against your household’s health coverage and what a catastrophic injury would cost. **Unlimited PIP medical** is the most complete. Premiums are usually higher. **Limited PIP medical** stops when the cap is reached. Other health insurance may pick up some bills after that, but not the full PIP list (attendant care, many modifications, wage loss). **Opting out of PIP medical** (Medicare or other qualified plans) usually lowers the premium. Medicare and typical health plans do not match unlimited PIP. ## HOW MUCH LIABILITY (BODILY INJURY) COVERAGE DO I NEED? Liability pays others if you injure or kill someone. Since July 1, 2020, the **minimum** is $50,000 per person and $100,000 per accident. Many renewal bills **default** to $250,000 / $500,000. You may choose more or less, but not below $50,000 / $100,000. Buy as much residual liability as you can reasonably afford. Ask about an umbrella policy for extra liability. ## HOW MUCH UNINSURED AND UNDERINSURED MOTORIST COVERAGE DO I NEED? UM/UIM helps if the at-fault driver has no insurance or too little liability coverage. It is optional but important when someone else’s limits cannot cover a serious injury. Buy as much as you can comfortably afford. ## WHY DOES MY BILL SHOW UNLIMITED PIP AND $250,000/$500,000 LIABILITY? Insurers often print default amounts on renewals. If you want a different PIP medical or liability level, you must tell the agent and complete the required forms. ## CONTACT AN EXPERIENCED CAR ACCIDENT ATTORNEY TODAY If you or a loved one is injured in an accident, we can help you understand the coverage you have and the claims you may bring. Michigan No-Fault law is complicated, but finding the right [auto accident attorney](https://callsam.com/case-types/car-accidents/) is simple. Start your case by filling out the brief form below or contact us for a free, no-obligation consultation. ## Related Posts ### [How Are Michigan Car Accident Lawyer Fees Determined?](https://callsam.com/blog/car-accident-lawyer-fees/) ### [Taking a Memorial Day Road Trip? How to Avoid a Car Accident on This Dangerous Driving Weekend](https://callsam.com/blog/memorial-day-car-accident/) ### [Michigan Car Seat Laws: What Every Parent Should Know](https://callsam.com/blog/michigan-car-seat-laws-what-every-parent-should-know/) ### [Michigan Has a New Flex Route Aimed at Lowering Car Accidents and Injuries](https://callsam.com/blog/flex-lane-reduces-michigan-car-accidents/) ### [Be Ghoulish… Not Foolish: Safety Tips for a Hazard-Free Halloween](https://callsam.com/blog/halloween-safety/) ### [Labor Day Safety Tips: How to Survive One of the Year's Most Dangerous Weekends](https://callsam.com/blog/labor-day-safety-tips/) ### [Are Golf Carts “Street Legal” on Michigan Roads?](https://callsam.com/blog/golf-carts-legal-michigan/) ### [Does Michigan No-Fault Insurance Cover Non-Resident Drivers Involved in a Car Accident?](https://callsam.com/blog/michigan-no-fault-cover-non-resident-car-accidents/) ### [The Darker Side of Daylight Saving Time: What Every Driver Should Know](https://callsam.com/blog/daylight-saving-time-car-accident/) ### [Michigan Supreme Court Allows Full Medical Benefits for Victims Injured Before No-Fault Reforms](https://callsam.com/blog/michigan-supreme-court-full-medical-benefits/)