Since Michigan’s major auto insurance reform in 2020, no-fault insurance laws have continued to evolve—confusing many drivers, especially those involved in car accidents. In 2025, understanding how Michigan’s no-fault insurance system works is crucial for protecting your health, finances, and legal rights.

At Latham Law Group, a personal injury firm serving Birmingham, MI, we want you to be informed. Whether you're renewing your policy or recovering from a serious crash, here’s what every Michigan driver needs to know in 2025.

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What Is Michigan No-Fault Insurance?

Michigan’s no-fault system requires drivers to carry insurance that pays for medical expenses, lost wages, and other costs —regardless of who caused the accident. However, since the 2020 reform, drivers can now choose from several Personal Injury Protection (PIP) coverage levels, which directly impact how much medical care is covered after an accident.

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Key Changes to Michigan No-Fault Insurance in 2025

1. PIP Coverage Choices Still Exist—But with Risks

As of 2025, Michigan drivers can still choose from these PIP levels:

• Unlimited coverage

• $500,000

• $250,000

• $50,000 (Medicaid-eligible only)

• Opt-out (if Medicare-qualified)

However, more providers and hospitals are reporting that limited PIP coverage is running out quickly, leaving injured drivers personally responsible for additional medical costs.

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2. Medical Provider Fee Schedule Continues to Limit Access

The fee caps imposed on healthcare providers are still in effect in 2025. Many doctors and rehabilitation centers have stopped treating auto accident victims altogether—especially those without unlimited PIP coverage.

Result: If you don’t have high PIP coverage, your treatment options may be severely limited after an injury.

Tip: If you were seriously injured in a crash, consult a personal injury lawyer in Birmingham, MI to explore whether you can file a liability claim against the at-fault driver.

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3. Increased Lawsuits for Non-Economic Damages

Drivers with limited PIP are increasingly turning to the courts to recover costs not covered by insurance. You may be able to sue the at-fault driver for:

• Pain and suffering

• Long-term disability

• Future medical care

This is especially common in Oakland County, where many residents have low PIP policies and rising medical costs.

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What to Do After a Michigan Car Accident in 2025

If you're injured in a car crash:

1. Seek medical care immediately —your PIP coverage will pay first.

2. Report the accident to your insurer, even if you weren’t at fault.

3. Track medical expenses to monitor your PIP limits.

4. Call a personal injury lawyer to protect your right to sue for additional damages.

Latham Law Group can help you determine:

• If you have a viable case against the other driver

• Whether your injuries meet Michigan’s “serious impairment” threshold

• What compensation you may be entitled to beyond your PIP

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Should You Increase Your PIP Coverage in 2025?

Yes—if you can afford it. We strongly recommend unlimited or at least $500,000 in PIP coverage, especially if:

• You drive frequently in metro Detroit

• You do not have comprehensive private health insurance

• You want access to top-tier medical care in case of serious injury

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Final Thoughts from Latham Law Group

The no-fault insurance system in Michigan is still complex, and in 2025, it favors drivers who understand their options and take legal action when needed. If you or a loved one has been injured in an auto accident and your medical bills are piling up, don't assume you're out of luck— you may have a valid injury claim.

Contact Latham Law Group today to speak with a Birmingham, MI personal injury lawyer who knows how to navigate Michigan’s ever-changing insurance laws.