Kajy Law Is Here To Help You Understand Michigan’s No-Fault Laws
Michigan Car Accident Lawyers
Who Pays After a Car Accident in Michigan? No-Fault Laws Explained
Knowing exactly what to do after a car accident in Michigan can be confusing, especially since it is a no-fault state.
Kajy Law has personally helped thousands of Michigan residents understand the local legal system. We’ll explain what no-fault means, what’s covered, and what else you should do after a car accident.
What No-Fault Insurance Means
No-fault insurance works by having a car accident victim use their own auto insurance for injury-related bills and expenses.
Every owner of a car in Michigan must have no-fault insurance, according to the Michigan Department of Insurance and Financial Services (DIFS). That way, there should never be anyone involved in a Michigan car accident that won’t have access to insurance benefits.
The idea behind assigning “no-fault” in an accident is to simplify the process of getting help with medical bills and lost wages after a car accident. Rather than trying to get the other person’s insurance to pay for bills, anyone involved in an accident in a no-fault state simply turns to their own insurance. Thus, your own insurance pays after a car accident in Michigan.
However, the law shows that not everything is covered under a no-fault system. Plus, the claim process is still confusing, challenging, and stressful. Find out details surrounding the current Michigan no-fault laws.
Current No-Fault Michigan Laws
There are three components to a basic no-fault policy in Michigan. They are:
- Personal Injury Protection (PIP)
This part of your no-fault policy will pay all reasonably-necessary medical expenses with no maximum limit. In other words, this is the part that pays if you are hurt in a Michigan auto accident (Note: an exception to this is the recent bill passed that allows either $50K coverage or a complete opt-out for Medicaid eligible recipients or if everyone has sufficient private insurance).
These PIP benefits are paid even when a family member is involved in a Michigan car accident in another person’s car, when a pedestrian is involved in a car accident, and they will cover motorcyclists injured from an accident involving your car.
If you lose income because of not being able to work after an accident, PIP also covers up to 85%* of the income you would have earned had you not been hurt. This coverage lasts up to three years. However, the amount that you would be paid for lost income is limited, and that limit is revised annually.
PIP coverage is also supposed to pay up to $20 a day for routine household services that the injured person can’t do anymore, such as housekeeping and yard work.
- Property Protection (PPI)
This part of a no-fault policy pays up to $1 million for any damage to other people’s property that your car is responsible for in Michigan. Examples can include damage to homes as well as other parts of a property such as fences.
PPI will also pay for the damage your car does to another person’s stationary vehicle, so long as it was properly parked when it was hit.
- Residual Liability Insurance – Bodily Injury and Property Damage
Under the no-fault law, insured drivers are protected from being sued in general. However, there are some unique situations where a lawsuit is allowed in Michigan. These include the following scenarios:
- You are responsible for a car accident in Michigan where someone is seriously injured, permanently disfigured, or killed
- You get into a car accident with a non-Michigan resident in a car that’s not registered in Michigan
- You get into an accident in a state outside of Michigan
- You are 50% or more at fault in a crash that damages another person’s car, and the damages aren’t covered by insurance (for up to $1,000)
*Lost income compensation is only 85% because it is tax-free. For more information, see section 500.3107b of the Michigan Insurance Law Code.
What No-Fault Doesn’t Cover
Even though no-fault policies in Michigan are designed to cover many of the important things involved in a car accident, they don’t cover everything.
This is why many people decide to get additional insurance, such as collision insurance to pay for the damage that takes place to your car if you’re involved in an accident.
Others choose comprehensive insurance to cover a financial loss if a car is stolen, vandalized, hit by a falling object, if you strike an animal, or is damaged by a fire or flood.
Let Kajy Law’s Michigan Car Accident Lawyers Help You
Our no-fault legal system is designed to help victims of car accidents in Michigan.
However, many Michigan car accident victims still struggle to get their bills paid, receive compensation for their injuries and losses, and are confused about what to do after an accident. That’s why you need our car accident team who know the laws, procedures, and local legal system to provide the help you need.
Get Help From Our Michigan Accident Attorneys
If you’ve suffered from a car accident in Michigan, let the Kajy Law legal team help you get the justice and compensation you deserve. Our proven strategies win millions of dollars for our clients each year. Contact us today to get started.