Michigan No-Fault Law, section by section › MCL 500.3109
Subtraction of other benefits from personal protection benefits; injured person defined; deductible provision.
In plain terms
Benefits that state or federal law provides or requires (workers' compensation is the common example) are subtracted from the PIP benefits otherwise payable for the same injury. Insurers may offer a deductible at a reduced premium that applies only to the named insured, spouse and resident relatives.
How this section works in practice
PIP is designed to be the last payer behind government benefits. Subsection (1) subtracts from PIP any benefit that state or federal law provides or requires for the same injury. Workers' compensation is the everyday example: an employee hurt in a work vehicle must pursue the workers' compensation benefits available and the PIP carrier pays only what remains. Social Security disability benefits have been treated the same way. Medicare is different, because federal law makes Medicare secondary to no-fault, so it is not a setoff.
Subsection (2) defines an "injured person" as a natural person, which keeps businesses and assignees from claiming benefits in their own right, and subsection (3) lets insurers sell a PIP deductible at a reduced premium that applies only to the named insured, spouse and resident relatives, never to a stranger injured by the insured vehicle. The practical lesson: if any public benefit is available for the injury, apply for it, because an insurer can deduct benefits you were entitled to receive even if you never claimed them.
Text of MCL 500.3109
Sec. 3109.
(1) Benefits provided or required to be provided under the laws of any state or the federal government shall be subtracted from the personal protection insurance benefits otherwise payable for the injury under this chapter.
(2) An injured person is a natural person suffering accidental bodily injury.
(3) An insurer providing personal protection insurance benefits under this chapter may offer, at appropriately reduced premium rates, a deductible of a specified dollar amount. This deductible may be applicable to all or any specified types of personal protection insurance benefits, but shall apply only to benefits payable to the person named in the policy, his or her spouse, and any relative of either domiciled in the same household.
History: Add. 1972, Act 294, Eff. Mar. 30, 1973 ;-- Am. 2012, Act 454, Imd. Eff. Dec. 27, 2012
Source: MCL 500.3109 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 500.3114: Priority: Which Insurer Pays PIP
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.
Every personal injury case turns on its own unique facts. The timing, the parties, the evidence, the jurisdiction, the insurance available, and dozens of other variables can change the legal analysis. Do not rely on anything written on this website to make decisions about your case.
If you have been injured in Michigan, the only responsible step is to speak with a licensed Michigan attorney about your specific facts. Call Koussan Law at (313) 800-0000 for a free consultation, or contact a different Michigan personal injury attorney of your choosing.
Reading this article does not create an attorney-client relationship with Koussan Law. Past results do not guarantee future outcomes.
