In the fall of 2010, the Michigan Brain Injury Provider Council:1 asked Public Sector Consultants (PSC) to analyze the potential impact of limiting the amount of coverage required for personal protection insurance (also referred to as personal injury protection or PIP) under Michigan’s no fault system for reparations related to automobile accidents. A recent report has suggested that automobile insurance rates and the percentage of automobile owners carrying the required coverage are adversely affected by Michigan’s current requirement for PIP coverage, 2 but the benefits that could be lost and the potential for cost-shifting if the coverage requirement is modified have not been thoroughly explored. To more fully understand the potential impact of reducing the coverage requirement for PIP under Michigan’s No-Fault Automobile Insurance Act, we have examined the following issues:
What benefits are associated with personal protection insurance required under Michigan’s current no-fault system?
What is the cost burden associated with catastrophic motor vehicle–related injuries, specifically traumatic brain injuries (TBI)?
Who currently pays for costs associated with motor vehicle–related injuries and how might the cost burden be shifted to the state and other payers if the coverage requirement for PIP were reduced?
