When people are injured in auto accidents, many don’t realize that under the Michigan No Fault Law, they’re entitled to many insurance benefits that will help them recover and heal, such as medical expense reimbursement, attendant care (also known as in-home nursing services) — and even reimbursement for a large portion of the lost wages that they when they cannot return to work or when they are unable to work from serious injuries suffered in a motor vehicle accident.
This last benefit is commonly referred to as “wage loss” and our own insurance attorneys frequently receive questions on how much an accident victim is entitled to for lost wages under No Fault:
“I get it that No Fault insurance pays people for “wages” they’re missing out on because they’re too injured to work. But how much exactly does a person get and for how long?”
First of all, if you’re not familiar with No Fault benefits, click here to for more information about each of your potential No Fault benefits and what they provide.
As for Michigan No Fault wage loss benefits, an accident victim can receive up to 85% of his or her lost income for up to the first three years following the crash. This is to account for the loss of income the injured person would have performed during that time, but now cannot due to car accident injuries.
However, it should be noted that’s a monthly maximum amount for wage loss benefits. The statutory maximum for Michigan wage loss is $5,189 per month from October 2012 to October 2013.