“If I am disabled in a Michigan auto collision, and therefore receive Social Security Disability benefits, can I still receive no-fault PIP wage loss benefits as well?”
Michigan courts have ruled that your PIP carrier is entitled to a credit for any Social Security Disability benefits you may receive for injuries received in a motor vehicle collision. The PIP carrier can’t force you to apply for Social Security Disability, but if you are awarded such benefits, your car insurance company can deduct any amount you receive from your wage loss payments.
For example, if your PIP wage loss monthly reimbursement is $2000, and you qualify for $900 per month from Social Security for the same injuries, your PIP carrier will owe you $1100 per month, and you’ll also get the $900 per month from Social Security. You still get the same amount that you would have received from PIP, alone ($2000 per month); it is just divided between two sources. If you get a large lump sum once your Social Security Disability is approved, the PIP carrier may stop paying you until the lump sum has evened out with the PIP payments that are due.
A couple of things to remember: This analysis only applies to Social Security Disability granted because of injuries caused in a car accident (not to Supplemental Security Income that a person receives because of a long-term illness not related to the car accident). Secondly, the PIP carrier can only claim the credit against wage loss benefits, not your other benefits, such as replacement services or attendant care.
Source: OAG Number 6111; 370 NW2d 619; 521 NW2d 831