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Michigan Wage Loss (Work Loss) Maximum Raised

On October 1st, 2007, the monthly maximum for work loss insurance benefits in Michigan was raised to $4,713 per month. These work loss PIP benefits are paid by a person’s own no fault insurance company if a person suffers personal injury and is unable to return to work as the result of an auto accident.The statutory maximum was changed on August 27, 2007, when the State of Michigan Office of Financial and Insurance Services issued Bulletin 2007-11-INS, enacting the yearly annual adjustment for the maximum amount of wage loss available under Michigan No Fault insurance policies.

A copy of the official insurance bulletin can be found at:

The new maximum wage loss no fault payments effective October 1, 2007 through September 30, 2008 is now $4,713 per month. This new maximum amount also applies to survivor’s loss benefits, which is a no fault insurance benefit that is paid to the surviving family of a person who is killed in an automobile accident under Michigan Law. Wage loss is an important benefit of the Michigan No Fault Act, and it is paid by an injured person’s own no fault insurance company when he or she has suffered personal injury as the result of a car accident and is unable to return to work. The resulting wage loss, which is also referred to as work loss or lost wages, has a maximum monthly amount that an insurance company has to pay. Any amount that an injured person would have received over that maximum monthly wage loss amount can only be claimed in a lawsuit that is filed against the person responsible for causing the motor vehicle accident. This adjustment to the maximum amount of PIP wage loss recoverable in

Michigan occurs once a year. Annual adjustments to work loss PIP benefits are made by the Commissioner of Insurance under MCL 500.3107 requiring the Commissioner to annually adjust maximum wage loss PIP benefits to reflect changes in the cost of living. This adjustment becomes effective every October 1st.


The adjustment to wage loss insurance benefits applies only to PIP benefits arising out of automobile accidents occurring after October 1st. The new maximum work loss effective October 1, 2007 through September 30, 2008 is $4,713 per month.
Michigan no fault PIP wage loss benefits for the last several years have been as follows:

October 1, 2003 through September 30, 2004 – $4,156 per month
October 1 , 2004 through September 30, 2005 – $4,293 per month
October 1 , 2005 through September 30, 2006 – $4,400 per month
October 1, 2006 through September 30,2007 – $4,589 per month
October 1 , 2007 through September 30, 2008 – $4,713 per month

For a brief video explanation of Michigan wage loss and other no fault insurance benefits available, visit our video library.

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Blog Author Steven M. Gursten
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