Michigan No-Fault Law, section by section › MCL 500.3107
Expenses and work loss for which personal protection insurance benefits payable.
In plain terms
Lists the three main PIP benefits: allowable expenses (reasonable charges for reasonably necessary care, recovery and rehabilitation, subject to the fee schedule in section 3157 and the coverage level chosen under section 3107c, with funeral expenses capped between $1,750 and $5,000), work loss for up to three years after the accident (reduced 15% for the income-tax advantage and capped at a monthly maximum that DIFS adjusts every October 1), and replacement services of up to $20 per day for three years. People 60 and older may waive work loss for a premium reduction, and insurers need not cover medical marijuana.
How this section works in practice
Section 3107 lists what PIP actually pays. First, allowable expenses: all reasonable charges for reasonably necessary products, services and accommodations for the injured person's care, recovery or rehabilitation. That includes hospital and physician care, prescriptions, therapy, attendant care at home, medical mileage, home and vehicle modifications, and case management, subject to the coverage level chosen under section 3107c and the fee schedule in section 3157. Funeral and burial expenses are covered between $1,750 and $5,000 as the policy provides.
Second, work loss: the income the injured person would have earned during the first three years after the accident, reduced by 15% because the benefit is tax-free, and capped at a monthly maximum that the Department of Insurance and Financial Services adjusts every October 1. Third, replacement services: up to $20 per day, for three years, for ordinary household tasks the injured person can no longer do, such as cleaning, yard work, snow removal and child care.
Two 2019 additions sit in subsection (2). A person 60 or older who would not qualify for work loss can waive that coverage for a lower premium, and insurers need not pay for medical marijuana. Every one of these benefits is triggered only by an expense actually incurred, and each is subject to the one-year-back rule in section 3145.
Text of MCL 500.3107
Sec. 3107.
(1) Subject to the exceptions and limitations in this chapter, and subject to chapter 31A, personal protection insurance benefits are payable for the following:
(a) Allowable expenses consisting of reasonable charges incurred for reasonably necessary products, services and accommodations for an injured person's care, recovery, or rehabilitation. Allowable expenses do not include either of the following:
(i) Charges for a hospital room in excess of a reasonable and customary charge for semiprivate accommodations, unless the injured person requires special or intensive care.
(ii) Funeral and burial expenses in excess of the amount set forth in the policy, which must not be less than $1,750.00 or more than $5,000.00.
(b) Work loss consisting of loss of income from work an injured person would have performed during the first 3 years after the date of the accident if he or she had not been injured. Work loss does not include any loss after the date on which the injured person dies. Because the benefits received from personal protection insurance for loss of income are not taxable income, the benefits payable for the loss of income must be reduced 15% unless the claimant presents to the insurer in support of his or her claim reasonable proof of a lower value of the income tax advantage in his or her case, in which case the lower value must be applied. For the period beginning October 1, 2012 through September 30, 2013, the benefits payable for work loss sustained in a single 30-day period and the income earned by an injured person for work during the same period together must not exceed $5,189.00, which maximum must be applied pro rata to any lesser period of work loss. Beginning October 1, 2013, the maximum must be adjusted annually to reflect changes in the cost of living under rules prescribed by the director, but any change in the maximum must be applied only to benefits arising out of accidents occurring after the date of change in the maximum.
(c) Expenses not exceeding $20.00 per day, reasonably incurred in obtaining ordinary and necessary services in lieu of those that, if he or she had not been injured, an injured person would have performed during the first 3 years after the date of the accident, not for income but for the benefit of himself or herself or of his or her dependent.
(2) Both of the following apply to personal protection insurance benefits payable under subsection (1):
(a) A person who is 60 years of age or older and in the event of an accidental bodily injury would not be eligible to receive work loss benefits under subsection (1)(b) may waive coverage for work loss benefits by signing a waiver on a form provided by the insurer. An insurer shall offer a reduced premium rate to a person who waives coverage under this subdivision for work loss benefits. Waiver of coverage for work loss benefits applies only to work loss benefits payable to the person or persons who have signed the waiver form.
(b) An insurer is not required to provide coverage for the medical use of marihuana or for expenses related to the medical use of marihuana.
History: Add. 1972, Act 294, Eff. Mar. 30, 1973 ;-- Am. 1988, Act 312, Eff. Mar. 30, 1989 ;-- Am. 1991, Act 191, Eff. Jan. 1, 1992 ;-- Am. 2012, Act 542, Imd. Eff. Jan. 2, 2013 ;-- Am. 2019, Act 21, Imd. Eff. June 11, 2019
Source: MCL 500.3107 at legislature.mi.gov (official text). Text as published in the 2025 Michigan Compiled Laws; reviewed by Koussan Law on September 15, 2026.
Sections that refer to this one
- MCL 500.3107a: Work Loss While Temporarily Unemployed
- MCL 500.3107b: Services PIP Need Not Reimburse
- MCL 500.3107c: Choosing a PIP Medical Coverage Level
- MCL 500.3107d: Opting Out of PIP Medical With Medicare
- MCL 500.3109a: Coordinated PIP and Health Insurance
- MCL 500.3116: PIP and Tort Recoveries
- MCL 500.3135: Serious Impairment Threshold and Mini Tort
- MCL 500.3142: Overdue Benefits and 12% Interest
- MCL 500.3148: Attorney Fees for Unreasonable Denials
- MCL 500.3172: Claiming Through the Assigned Claims Plan
Practice pages
Important: This is not legal advice
This article is general information about Michigan personal injury law. It is not legal advice and should not be relied on as a substitute for consultation with a licensed Michigan attorney about your specific situation. The laws, deadlines, procedures, and frameworks here are general guidelines that may or may not apply to your case.
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