PIP Opt-Out

I don’t think Michigan drivers should have to prove they have the same health coverage over and over just to keep an auto insurance choice they already made.

Michigan law lets certain drivers opt out of Personal Injury Protection (PIP) medical coverage on their auto policy if they have qualifying health coverage. That choice can lower premiums, but the problem is the paperwork does not stop once a coverage selection has been made.

Under current rules, if a driver chooses the PIP medical opt-out, they generally have to fill out the same opt-out form at each renewal, even if their qualifying health coverage has not changed. If a policyholder misses the paperwork, their policy often defaults to unlimited PIP medical coverage, causing a significant spike in cost.

That is why I am working to introduce legislation that would let a valid PIP medical opt-out stay in place at renewal. If a driver already qualified and elected to opt out, they should not have to resubmit the same paperwork to prove the same coverage just because the policy term rolled over.

If qualifying health coverage actually ends, a driver would still need to tell their insurer, as the law already requires, so the policy can be adjusted accordingly. What my legislation seeks to end is the redundant ritual of proving again and again that coverage has not changed.

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