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When life circumstances say it’s time, we switch to Medicare for our medical insurance.  As we explore how to best protect our retirement nest egg, we find out Medicare comes in specific parts that we pay for.  There are plenty of choices to make as we create a retirement medical plan that fits our needs and budget.  Once that’s all ironed out, we begin to wonder if we still need the Personal Injury Protection (PIP) on our personal auto insurance policy to pay for our auto accident medical costs. 

PIP and Medicare cover some of the same things.  If you have Medicare Parts A & B, you can opt out of PIP (or lower the amount it will pay).  So why keep unlimited PIP?  This is a good question.

Comparing PIP to your Medicare program isn’t a tough assignment.  PIP benefits are the same for all Michigan auto insurance companies.  Medicare add-ons vary greatly in what they cover, so start there. 

There are costs incurred while recovering from a serious auto accident that can really add up.  See how your Medicare program covers:  skilled nursing facility costs, long-term/custodial care, residential treatment programs, attendant care (this can be VERY costly over time), transportation services, replacement services, outpatient therapies (physical, speech, etc.), massage therapy, needed home and vehicle modifications, and durable medical equipment.  PIP covers all of these until (1) you die or no longer need them; (2) you run out of PIP benefits because you chose limited PIP instead of unlimited PIP.

If you are badly injured in an auto accident and can no longer afford your Medicare program, will some of the coverage stop?  PIP keeps paying even if your auto policy cancels.

In my opinion, Unlimited PIP is still the best way to protect your financial nest egg from all the costs created by auto accident injuries.  But if you have Medicare A & B, (and have the card to prove it) the PIP decision is yours to make.  You can keep unlimited PIP, choose a PIP limit, or opt out of PIP entirely.  Choose well because your future quality of life could depend on it.