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Understanding Michigan’s No-Fault System For a Car Crash

Couple reviewing documentsMichigan’s no-fault insurance system has been around for about 50 years, and it was implemented to help reduce the number of lawsuits in the state. Following the changes taking effect under Michigan's new No-Fault Auto Insurance Reform, many policyholders may be confused about what to expect from their coverage under the new law.

Our attorneys at Jay Trucks & Associates explain more about this no-fault system in user-friendly terms, including who pays after an accident, what benefits you can expect, and how to access the compensation you need.

If you were injured in a Michigan car crash, we recommend that you consider seeking legal help for your potential claim soon after your accident. Our trusted lawyers have extensive knowledge of Michigan’s no-fault insurance system and how these laws may apply following a car accident.

We are prepared to review the circumstances and contributing factors of your car crash and help you understand your legal options in a completely free consultation. Following this no-obligation meeting, if you have a case and decide to retain our services, you can do so with zero out-of-pocket costs. We charge nothing to you unless we first obtain compensation on your behalf.

Who Pays For What and When in a Michigan Car Crash?

If you suffered injuries in a car accident, Michigan’s no-fault insurance system provides personal injury protection (PIP) and other benefits, even if you were at fault for the accident. The no-fault benefits you may receive include :

PIP Provision for Medical Expenses

The medical benefits that are covered by your PIP insurance could include the following (up to your policy limits):

  • In-patient hospital stays
  • Surgical interventions
  • Prescribed medications
  • Ambulatory care
  • Physical Therapy
  • Rehabilitation Services
  • Diagnostic testing
  • Cost of traveling to doctor appointments

PIP Compensation For Certain Economic Damages:

Other benefits you can expect from your PIP coverage includes the compensation of some economic damages, including:

  • Replacement services – If eligible, you may receive up to $20 per day to help you manage household tasks, such as lawn care, laundry or housekeeping tasks that your injuries prevent you from doing on your own.
  • Lost wages – PIP provides up to 85 percent of the income you were making at your regular job (or up to the maximum allowed weekly benefit of $5,398), whichever is less, for a maximum of three years.

PIP Death Benefits Expenses

When a policyholder suffers death in a Michigan car crash, PIP benefits will pay for his or her funeral and burial expenses. Beneficiaries of a deceased victim are also eligible for the wage loss benefits that the victim would have received if he or she had survived.

Personal Property Insurance (PPI)

The PPI portion of your no-fault insurance benefits covers the cost of any damages your car did to any other property, such as a shop window, perimeter fence or storage shed. It also covers the damages your car may have caused to a parked car. It does not provide any compensation for the repair of other vehicles involved in the crash or your own car.

How to Claim Your Benefits

After a car accident, you have up to one year from the date of your accident to file a PIP claim with your insurance company. If you miss the deadline, you will not get your benefits.

There are different types of documentation that you will need to file with your insurer to get benefits, including:

  • Request for PIP benefits form
  • Doctor’s note detailing the type and extent of your injuries
  • A form requesting compensation for lost wages (if applicable)

Your insurance provider is not obligated to pay you any benefits until you submit this documentation. However, once you have provided this information, your insurer has 30 days to begin payments and can be charged interest on arrears for non-compliance.

What If You Are At-Fault?

Liability is not applicable when filing a no-fault insurance claim. Your PIP and other benefits will apply regardless of who may have caused the accident. However, you should review your policy or check with your insurance provider to see if you have to pay a PIP deductible. 

Who Pays Medical If Your PIP Runs Out

Michigan follows a revised order of priority following the implementation of the new Auto Insurance Reform. The new priority for obtaining no-fault insurance benefits is as follows:

  • Insured (self)
  • Spouse (if applicable)
  • Resident relative
  • Michigan Assigned Claims Plan (MACP) – Under the new law, the MACP will provide up to $250,000.

Contact a Reputable Lawyer For Legal Help With Your Claim

At Jay Trucks & Associates, we are prepared to provide the legal help you need. Our knowledgeable Clare car accident attorneys can discuss your potential legal options for compensation, including whether you may have grounds for a personal injury lawsuit, in a completely free consultation. We charge nothing up front and collect no attorney's fees unless we first obtain a recovery on your behalf.

Call firm today. No upfront fees. (800) 762-8623