Michigan’s auto insurance laws changed in 2020, giving drivers more flexibility when selecting Personal Injury Protection (PIP) medical coverage.
One key part of this change involves something called Qualified Health Coverage (QHC) — and understanding how it applies to you can help ensure your coverage choices fit your situation.
In the Past: Coordination of Benefits Letter
In the past, a Coordination of Benefits letter was required when a client had the Unlimited Personal Injury Protection (PIP) benefit.
This letter was used to prove that the health insurance carrier would cooperate with the auto insurance carrier to pay for auto accident-related injuries on a secondary basis.
Today: Qualified Health Coverage (QHC) Letter
Under current law, a Qualified Health Coverage letter is only required if you choose to opt out of Unlimited PIP coverage or select a lower PIP medical limit.
This option allows drivers to opt out of the Unlimited PIP coverage and choose lower levels of PIP coverage or none at all.
What the Letter Must Include
If you choose the Opt-Out PIP option, you must obtain a letter from your medical insurance carrier that includes the following:
- States the plan is a “Qualified Health Coverage” plan (or does not limit auto accident injury coverage).
- Lists, by full name, all plan enrollees in your household.
- Confirms the annual individual deductible is $6,579 or less (2025 threshold).
If any of these details are missing, the auto insurance company will reject the request to remove PIP coverage from your auto policy.
Why This Matters for Michigan Drivers
PIP medical benefits are a major part of Michigan auto insurance, and opting out or lowering your coverage is a significant decision.
The QHC letter proves that you and your household members have health insurance that meets state standards for covering auto accident injuries. Without this proof, drivers cannot legally drop Unlimited PIP.
Common Pitfalls to Avoid
We often see delays because:
- The deductible amount is missing from the letter.
- Not all household members are listed.
- The letter is from a benefits administrator instead of the insurance carrier.
Requesting the letter early, well before your renewal date, can prevent gaps in coverage.
Annual Renewal Reminder
Even if your health plan hasn’t changed, your auto insurer will require a new QHC letter every year at renewal. Keeping this in mind can help avoid last-minute scrambles.
Additionally, visit our Michigan No-Fault Auto Insurance Changes page for everything you need to know to be well-informed about Personal Injury Protection and other no-fault changes. See more of our Issue Alerts here.
How Mason-McBride Can Help
As an independent Michigan insurance agency based in Troy, Mason-McBride helps drivers review policy options, coordinate QHC letters, and understand how recent changes affect their auto insurance.
Our role is to provide clear information and guidance so you can make informed, confident decisions about your protection.