January 19, 2023
How Does No-Fault Insurance Work in Michigan?
The state of Michigan implemented changes to its No-Fault car insurance laws in 2020. No Fault insurance states that, after an accident, the driver’s insurance covers costs such as damage and medical bills, regardless of who was at fault. No-Fault insurance automatically comes with something called PIP (or Personal Injury Protection), though drivers have the ability to choose their level of PIP coverage. This portion covers any medical bills that may result from an accident in addition to lost wages and “replacement services,” which provide support to injured individuals while they are unable to do regular tasks, such as grocery shopping or household chores.
Property protection insurance (PPI) is another factor of No-Fault insurance and will pay out to fix damaged property, such as vehicular damage (that is not your own), up to one million dollars.
The start of 2022 marked the end of Michigan’s amnesty period for drivers without No Fault insurance. This means that every driver with a Michigan license operating a vehicle in the state of Michigan is required to have No-Fault driver’s insurance. Driving without insurance can lead to a fine of up to $500, a suspended license, or even one year in jail.
Liability Claims and Protections
Residual liability protection comes automatically with your MI No-Fault insurance. This money will help pay for defense costs and damages associated with an accident for which you are found to be at-fault. There is usually a cap on this policy, so it’s important you know what the maximum payment amount is—you also have the opportunity to pay for a higher limit. The following are the minimum coverages a standard Michigan No Fault policy will provide:
- $20,000 per person injured or killed in an accident
- $40,000 per accident in which more than one person is injured or killed
- $10,000 per accident for property damage for an accident that occurs in another state
Keep in mind that these minimums do NOT include pain and suffering or any non-monetary damages that occur as a result of a car accident. For those, the injured party may choose to file a separate lawsuit.
What Are My Options If Someone Hits Me in a Car Accident in Michigan
As mentioned above, Michigan No-Fault insurance covers quite a bit, but how do you know exactly what’s covered? And how can you be sure that you are getting the benefits you’re owed? That’s where a car accident attorney comes into play. Whether you’re an accident victim or the at-fault driver, a lawyer that specializes in car accidents will be able to help you navigate the world of insurance while also making sure all of your rights remain protected.
If you think you may be entitled to file a lawsuit, you’ll definitely want to consult a lawyer first. This is because there are a lot of exceptions to the rule. For instance, to hold another driver at-fault, at least one of the following must be true:
- The accident caused you (or someone you are legally representing) serious bodily harm, disfigurement, or death
- The at-fault driver is a non-resident, and their vehicle is NOT insured the state of Michigan
- The accident occurred in another state
If you’re suing to cover the cost of damage to your vehicle, ALL of the following must be true:
- The damage you’re suing for is $1,000 or less
- The damage is NOT covered by your own insurance
- The other driver is AT LEAST 50% at fault (for the accident)
Because of stipulations like these, having a lawyer on your side can make a huge difference. Our dedicated team is full of talented attorneys who specialize in personal injury and vehicular accident law. We’ll meet with you, talk about what options are available, and help you navigate the complicated process of filing claims and/or lawsuits to get you the benefits and coverage you deserve. Don’t wait—if you’ve been in a car accident, schedule a free consultation today.