Michigan’s no-fault insurance law was designed to help people like you who have been injured in a car accident.
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is a unique system that ensures car accident victims get the help they need immediately and regardless of fault.
Specifically, if you’re injured in a car accident covered by Michigan’s no-fault insurance law, then you’ll turn to your own auto insurance company for the benefits you’ll need to get back on your feet and start rebuilding your life. More importantly, those benefits will pay for accident-related medical bills and lost wages if your injuries prevent you from returning to work. Getting the help you need does not depend on or require you to sue the driver who caused your accident.
Read on to learn about the protections and benefits you’re entitled to under Michigan’s no-fault insurance law.
is michigan a no-fault state for car accidents?
michigan is a no-fault state for car accidents. Before lawmakers passed Michigan’s no-fault insurance law in 1973, Michigan had been a tort state. In 2019, the Legislature made landmark changes to auto insurance law that affect all drivers, including the ability to choose PIP for the first time in Michigan.
To learn more, watch this video:
what is michigan no fault insurance?
To drive legally in Michigan, state law requires no-fault insurance to be the mandatory auto insurance for anyone who regularly drives in the state. If you are injured in a car accident, your car insurance company pays for medical bills and lost wages, regardless of who was at fault for causing the car accident
why does michigan have no-fault insurance?
Michigan has no-fault insurance because the tort system that preceded it hurt car accident victims, not helped them. Seriously injured victims were denied compensation or systematically undercompensated. long delays forced victims to bear devastating financial burdens.
how does no fault insurance work in michigan?
The way Michigan no-fault insurance works is that if you are injured in a car accident, an auto insurance company pays your medical bills and lost wages regardless of whether you were at fault. either your own insurer or the legally responsible company will pay once you file an application for benefits.
recent changes in michigan no-fault insurance
- pip choice: For over 40 years, michigan’s no-fault insurance law has required drivers to purchase “unlimited” pip medical benefits that would cover any and all of car accidents related to medical care and treatment for as long as “reasonably necessary” for the care, recovery, or rehabilitation of the injured person. Under the new law, after July 1, 2020, drivers must select whether they want to continue “unlimited” coverage or limit their coverage to $50,000 (if enrolled in Medicaid), $250,000, or $500,000.
- Opt Out: Drivers who have Medicare will have the option after July 1, 2020 to opt out of PIP’s medical benefit coverage entirely. The intent behind this change is for these drivers to turn to Medicare for medical coverage for injuries sustained in a car accident.
- assistant care: Under the michigan no-fault insurance law effective July 1, 2021, auto insurance companies will not be required to pay more than 56 hours at a time. week of family care at home. provided assistant care.
- medicare-based fee schedule: Beginning July 1, 2021, doctors, hospitals, clinics, and other medical providers will be required to adjust their charges for medical care, treatment, and services to the new medicare based standards. list of fees, which will be a percentage of what is paid with medicare.
- Bodily Injury Liability Coverage: Effective July 2, 2020, drivers will be required to carry bodily injury liability insurance in amounts “not less than $250,000 due to bodily injury or death of 1 person in any 1 accident” and “of not less than $500,000 due to bodily injury or death of 2 or more persons in any 1 accident.” More importantly, however, the law also states that a driver “may choose buy lower limits” of $50,000 and $100,000.
- qualifying health coverage: In order for drivers to select certain levels of coverage and options that will be available after July 1, 2020, drivers and/or their family members may need to have insurance coverage that qualifies as “qualified health coverage.”
- mini tort: The maximum mini tort recovery amount will increase from $1,000 to $3,000 for auto accidents after July 1, 2020.
- “Excess” Medical Expenses: Under Michigan’s no-fault insurance law, drivers whose accident-related medical bills exceed the relevant pip medical benefits coverage level in the car insurance through which they have made their claim, they will be able to sue the at-fault driver in a third-party tort lawsuit for payment of their present and future “excess” medical bills.
- Michigan Catastrophic Claims Association: Under PIP’s new medical benefit coverage levels, the Michigan Catastrophic Claims Association (MCCA) will pay the medical costs of car accident victims with catastrophic injuries only if “unlimited” was the level of coverage selected on the auto insurance policy through which they are claiming coverage. more importantly, however, mcca will remain responsible for catastrophic injury benefits payable under policies issued or renewed before July 2, 2020.
- Michigan Assigned Claims Plan – Any automobile accident victim required to claim Michigan no-fault insurance benefits through the Michigan Assigned Claims Plan, which is designed to assign insurance companies auto insurance to provide benefits to victims who otherwise have no source of insurance coverage, will be capped at $250,000 in medical benefits.
for more information, check out our video:
What Happens in a No-Fault Accident?: Think of this as a “get-start” course on what car accident victims should do and think about after they’ve been injured in an accident no fault
what is pip insurance? – for car accident victims, pip insurance is essential. Under Michigan’s no-fault insurance law, it provides the benefits they need to recover from their injuries and rebuild their lives. That’s why PIP stands for “personal injury protection” insurance.
Benefits: Learn about the important pip benefits you are entitled to from your own auto insurance company after you have been injured in a car accident. More importantly, those benefits include payment for medical care related to the accident and reimbursement for lost wages if your injuries prevent you from returning to work.
Michigan No Fault Law Guide – Free Book: Our guide to Michigan auto insurance law is an excellent reference to help car accident victims by virtue of their rights and legal protections. Not only is the guide packed with valuable information, it’s free for you. order your copy today.
Forms: Under the law, in order to receive the Michigan no-fault insurance benefits to which you are entitled, you will need to file specific forms with your auto insurance company. this is where you can find sample forms to use. They include: an application for benefits; treating physician’s report; certificate of incapacity for work; salary verification; and attendant care disability certificate and affidavit of services rendered.
Frequently Asked Questions: Our experienced car accident attorneys answer the most frequently asked questions from people who need help paying for car accidents. medical bills and receive reimbursement for lost wages after a car accident.
llawsuits – hopefully you’ll never have to file one. but sometimes they are necessary if your auto insurance company is treating you unfairly and is refusing to pay benefits to which you are entitled.
Managed Care: Most people are familiar with hmos and their prior authorization requirements for in-network services, referrals, and doctor visits. Now, the same type of managed care is available through PIP’s medical benefits coverage. here’s what you need to know before you sign up.
Health Insurance: The new law is designed to shift medical costs related to car accidents to drivers’ private health insurance plans. find out how it could work for you.
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Medicaid: Medicaid was intended to be one of the alternative resources for car accident victims who have exhausted their PIP medical benefit coverage under the new law. how does medicaid intend to work with the new law?
Medicare: Michigan’s new no-fault insurance law allows drivers who have Medicare to opt out of PIP medical benefits altogether. Find out how they will work and what Medicare will cover under the new law.
Pain and Suffering: You may be able to sue the at-fault driver who caused your accident and your injuries for pain and suffering and other financial damages. know more!
Mini Tort and Vehicle Damage – Wondering how to pay for your vehicle damage after a car accident? This section covers the Michigan Mini Tort, with answers to frequently asked questions, a guide to compiling your Mini Tort, and sample letters to streamline the process.
3 Cases After Michigan Car Accidents – This diagram provides a quick overview of the three possible cases you have in Michigan if you have been injured in a car accident.
michigan no-fault law and statutes: Our experienced car accident attorneys explain in everyday language, not legal jargon, what the different aspects of the law mean to people like you who have been injured. in a car accident.
Michigan Auto Insurance Reform – Stay up-to-date with the latest news and information on any proposed reform of Michigan’s no-fault insurance law.
Uninsured Motorist Coverage (UM): Many Michigan drivers do not have auto insurance. In some cities, like Detroit, 50 percent of drivers are uninsured. Learn how um can protect you if you’re in a car accident with a driver who doesn’t have insurance.
Underinsured Motorist Coverage (UIM): Many Michigan drivers are “underinsured” or lack adequate insurance coverage to pay compensation or economic damages owed after they have suffered blame for causing an accident. car accident that injured or killed others. UIM coverage will help protect you if you or a loved one is injured by an “underinsured” driver.
Social Security Disability (SSD) and Your Car Accident Case: Does Your Insurance Adjuster Force You to Apply for Social Security Disability? Learn how a social security disability claim affects your car accident claim. We’re taking the guesswork out of the complicated and time-consuming SSD process to help you get the best compensation available.
injured and need a lawyer? call michigan car law
If you’ve been injured in a car accident and have questions about your legal rights and the benefits you’re entitled to under Michigan’s no-fault insurance law, you can call toll-free anytime, 24 hours a day, 7 days a week. weekdays at (800) 777-0028 for a free consultation with one of our experienced car accident attorneys. Contact us here to get help from an experienced attorney or you can use the chat feature on our website.