What Benefits are Available through Michigan No Fault Law?

Michigan No Fault Law provides valuable benefits to any person who suffers personal injury in an automobile accident in Michigan, as long as they are not the owner/operator of a car or truck operating without Michigan no fault insurance.  These benefits are also referred to as PIP (personal injury protection) benefits.  And they are also called “first party benefits” because claims for these benefits are made to the car accident victim’s own “first party” no fault insurer (as opposed to the other driver’s insurance, referred to as “third party”).

Again, the auto accident victim’s own “first party” insurer is required to pay Michigan No Fault benefits for expenses relating to their auto accident. These first-party car accident claims involve payments for medical expenses, wage loss, replacement services, mileage, survivor's loss, funeral expenses, and attendant care, when applicable, if the injuries are serious enough.

Medical Expenses & Transportation – Lifetime Benefit:
The Medical Expense Provision provides a lifetime benefit for medical expenses incurred because of auto accident injuries.  It is very important that injured victims understand their specific type of insurance, as they may qualify for coordinated benefits. With coordinated benefits, the first party no fault insurance would pay all expenses not covered by the injured victim’s health insurance.  With full benefits (not coordinated), the victim’s auto no fault insurance pays all medical expenses incurred even if those are paid by a health insurance provider.  Michigan auto accident attorneys can help injured persons interpret their policies to ensure the best compensation, and help guide medical providers about which policy should be billed to protect the victim’s interest.

Part of the medical expense provision of the Michigan No Fault Act also provides for reimbursement of transportation expenses. These include expenses for mileage to and from medical offices, hospitals and rehabilitation clinics, or bus and taxi fare when the car accident victim is unable to drive.  It is essential that injured persons keep a detailed record of mileage expenses and submit this to the insurance company along with other medical bills.

Wage Loss & Replacement Services – 3 Year Benefit:
Other benefits include Wage Loss and Replacement Services, both payable for three years from the date of the accident. The Wage Loss Provision will reimburse car accident victims for 85% of wages lost as a result of their personal injuries, up to a statutory monthly maximum that is adjusted every year.  The Replacement Services Provision will pay up to $20.00 a day for any services that an auto accident victim previously performed, but now must hire someone else to handle following the auto accident.

Important Filing Requirements – Within 12 Months:
There are some important steps car accident victims must take to secure these no fault benefits. First, the injured person must immediately file a No Fault “Application for Benefits” with their own first-party auto insurance carrier. This application MUST be filed within twelve months from the date of the accident or the victim will forever lose any entitlement to benefits. Nothing starts until this Application for Benefits has been filed. Secondly, for any items of reimbursable expense that go unpaid by the insurance carrier, car accident victims must file a lawsuit for that expense within twelve months from the date that it was incurred. If such a lawsuit is not filed within that twelve month period, injured persons will forever lose their right to reimbursement of that expense item.

The information above is only a brief summary of Michigan auto accident benefits available to people injured by car accidents.  More detailed information can be found in our No Fault Law Resource Center, or by calling an automobile accident attorney directly at 800-777-0028.