Car Accidents
Michigan No-Fault Insurance
Michigan No-Fault insurance is mandatory for all vehicle owners or registrants. It ensures coverage for injuries and damages regardless of fault. There are four essential types of motor vehicle insurance is required for each vehicle.
1. Personal Injury Protection (PIP)
This coverage pays for bodily injuries sustained by the insured, resident family members, or non-family, non-residing passengers of the insured vehicle, regardless of fault. As of July 1, 2020, coverage options include:
- Unlimited medical coverage
- $500,000 coverage
- $250,000 coverage
- $50,000 coverage (if on Medicaid)
2. Property Protection Insurance (PPI)
Provides up to $1,000,000 in coverage for damages caused to another person’s property, regardless of fault.
3. Residual Liability - Bodily Injury (BI)
Covers bodily injury claims when the insured is legally responsible. This includes:
- Bodily harm, sickness, or disease
- Death
- Defense and court costs for covered claims
4. Residual Liability - Property Damage (PD)
Covers accidental physical damage to tangible property when the insured is legally liable
Michigan No-Fault Insurance
The benefits depend on the PIP coverage limit selected. Available options include unlimited, $500,000, $250,000, or $50,000 under certain conditions. Some policyholders can exclude PIP medical under the $250,000 limit if they have alternative health coverage.
Michigan No-Fault Insurance covers the following medical expenses:
- Medical bills
- Doctor examinations and follow-ups
- Surgeries
- Prescription costs
- Rehabilitation
- Diagnostic tests (X-rays, MRIs, etc.)
- Medical equipment (wheelchairs, IVs, walkers, crutches, etc.)
- Home modifications (wheelchair ramps, toilet lifts, handrails, etc.)
- Case management services
- Attendant care (family members may be compensated for caregiving services, with documentation required, and a limit of 56 hours per week)
- Medical transportation (mileage reimbursement)
- Special vehicle modifications (for mobility needs)
- Guardian/conservator services, including legal and medical decision-making, attending therapy sessions, managing bills, and arranging transportation
Limited Benefits
- Replacement Services: Covers household chores (e.g., lawn care, snow removal) up to $20 per day.
- Work Loss: Covers 85% of lost wages for up to 3 years, with a maximum monthly payout of $5,700.
Who Is Covered?
Accidents Resulting in Death
Michigan’s No-Fault system follows an “order of priority” (OOP) to determine which insurer is responsible for PIP benefits in an accident.
For private vehicles:
- The injured person’s own policy provides coverage.
- If they do not have a policy, their spouse’s policy applies.
- If no spouse is insured, the next option is a relative living in the same household.
- If none of these apply, the Michigan Assigned Claims Plan may provide coverage.
For vehicles-for-hire (taxis, Uber, shuttles, employer-furnished vehicles, etc.), the OOP becomes more complex.
A wrongful death claim can be pursued if a person dies due to a motor vehicle accident. Michigan’s Wrongful Death Act allows close relatives of the deceased to seek compensation for:
- Loss of financial support
- Loss of services
- Loss of love, companionship, and society
When Can You Sue?
To bring a lawsuit in Michigan for a car accident, the injured party must prove that the other driver was at fault. Common causes of negligence include:
- Speeding
- Running a red light or stop sign
- Failing to yield
- Improper lane changes
In a lawsuit, victims can seek:
- Non-economic damages: Compensation for pain and suffering, emotional distress, and diminished quality of life.
- Excess economic loss damages: Out-of-pocket expenses not covered by PIP benefits.
Comparative Fault
If a victim is partially responsible for the accident, their compensation will be reduced by their percentage of fault. If they are more than 50% responsible, they cannot recover non-economic damages.
Threshold Injury Requirement
To qualify for a lawsuit, injuries must meet Michigan’s “threshold injury” standard, meaning they involve:
- Serious impairment of body function
- Permanent serious disfigurement
- Death
Economic damages may still be pursued for uncovered medical expenses and lost income.
Non-Economic Benefits
Non-economic damages include “pain and suffering” compensation. Under Michigan law, a negligent driver is liable for non-economic damages if the injured person experiences:
- Death
- Serious impairment of body function
- Permanent serious disfigurement
These injuries must be “objectively manifested,” meaning they require medical evidence. Non-economic damages can result in significant compensation depending on the severity of the injury.
Conclusion
Michigan’s No-Fault Insurance system provides essential protections for vehicle owners, covering medical costs, property damage, and economic losses. However, lawsuits may still be pursued for additional compensation in cases of serious injury or wrongful death. If you have been in an accident, consulting a legal professional can help navigate the complexities of your case and maximize your benefits.
Practice Areas
- Car Accidents
- Truck Accidents
- Motorcycle Accidents
- Bicycle Pedestrian Accidents
- Medical Malpractice
- Wrongful Death
- Premises Liability
- Product Liability
- Michigan Torts
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