Michigan’s New No Fault Law Defines Four Categories of Benefits


While Michigan’s New No-Fault Law has been in place since July 1, 2020, many residents have annual renewals approaching this fall. One of the things about the new law all should know is that it defines four categories of benefits that may be payable to accident victims directly, or to anyone caring for the injured party such as a family member, friend, or other caregivers.

Michigan’s New No-Fault Law categories include:

Allowable Expenses

Auto insurers must pay out benefits at a level up to what the coverage cap is as selected by the insured. That cap can range from $50,000 to unlimited. This category includes payment for such items as in-home accommodations, different types of rehabilitation, physical therapy, case management, guardian expenses, and more. It could also cover attendant and patient care and mileage costs for vehicle trips taken to and from medical appointments.

First-Party Claim Replacement Services Reimbursement

This includes reimbursement for expenses incurred by an injured person in an effort to obtain services that the injured person would have been necessary or reasonably required had they had not been injured. There are specific definitions to help define what gets covered under this reimbursement.

Up to $20 of household services may also be covered per day, including housekeeping, meals and cooking, snow blowing a driveway or sidewalk, grass cutting, and other types of yard work.

Survivor’s Loss Benefits

When a death caused by a motor vehicle accident occurs, Michigan’s No-Fault law requires payment of survivor’s loss benefits to the dependents of the victim. The judge assigned to the case may designate a lump sum or monthly payments that would be required. Potential benefits paid could include the economic value previously provided by the deceased, replacement services, and funeral/burial expenses.

Work/Wage Loss

Perhaps the most critical payment is Work/Wage Loss which provides coverage is payable for up to three years to cover “loss of income from work an injured person would have performed” if the accident and injury had not occurred. Such benefits are payable at a rate of 85 percent of gross pay, and overtime may be added if the injured would have qualified at his or her job.

Additionally, victims of an auto accident who were considered “temporarily unemployed” at the time could receive work loss benefits.

If you have any questions about payments owed to you following an auto accident, Lawrence Kajy and his colleagues at the Kajy Law Firm are here to help. We have the experience and knowledge needed to guide you through the process following an accident. We also are well versed in Michigan’s new No-Fault law and the impact it may have on your case.

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