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Michigan No-Fault Wage Loss Rules Revised

If you have been injured in a car accident or truck accident in Michigan and need to know how much money you will be entitled to for wage loss, the no-fault lawyers of Michigan Auto Law can help. Michigan wage loss is a no-fault insurance benefit (also called personal injury protection or PIP benefit) that auto accident victims are entitled to after a crash, which compensates you for wages lost due to your personal injuries.

The previous maximum for lost wages was $4,713 per month. As of October 1, 2009, the new statutory maximum for Michigan wage loss is $4,948 per month. In other words, if you are out of work due to debilitating injuries from a Michigan car accident, you are entitled to at most, $4,948 each month.

Based on the no-fault wage loss formula, which is 85 percent of one’s gross income tax-free, the maximum amount for wage loss equates to an estimated annual income of $70,000. So if you earn less than $70,000 per year, your income should be fully covered by no-fault wage loss benefits in the event of an auto accident.

If a Michigan Auto Accident Victim Earns More Than $70,000 Per Year…

If you earn more than $70,000 per year, anything you are owed over the statutory maximum is considered “excess wage loss” and is recoverable from the auto insurance policy of the person who caused the car accident.

Keep in mind that excess wage loss, which is an economic loss, is subject to pure-comparative negligence. This means you can recover your wage loss on a pro-rata basis, depending on the percentage of liability between the parties. For example, if you were 75 percent at-fault for the crash and the other party was 25 percent at-fault, you could recover up to 25 percent of your excess wage loss from the wrongdoer’s insurance policy.

If both parties were 50 percent at-fault, you can recover up to 50 percent of your excess wage loss. Obviously, if you are 100 percent responsible for the car or truck accident, there would be no recovery for excess wage loss.

As our no-fault lawyers have said before, Michigan wage loss benefits are restricted only to taxable income. Therefore, wage loss benefits do not include heath insurance, pension and other contributions.

If you have been seriously injured in a car accident and are unable to work, please call the no-fault lawyers of Michigan Auto Law at (800) 777-0028. We would also be happy to answer questions about your wage loss benefits. Our law firm has more than 50 years experience exclusively handling car, truck and motorcycle accident cases in Michigan. We can get you the benefits and compensation you need.

— This blog post was written by Jeffrey A. Bussell. Jeff joined Michigan Auto Law’s pre-suit division with extensive experience in no-fault insurance litigation. He works closely with auto accident victims in the early stages of their lawsuits, helping them garner the no-fault insurance benefits necessary for a full recovery.

Related information:

Michigan Wage Loss Video

For Michigan Lawyers: How to Compute Wage Loss

Out of State Car Accident and No-Fault Law

Michigan Auto Law has Southfield, Detroit, Ann Arbor, Grand Rapids and Sterling Heights. For more information, please read our law firm quick facts.

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