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No-Fault Personal Protection Insurance (PIP) Benefits

Lawyer Commentary on No-Fault Statute: MCL 500.3107

Personal protection insurance benefits; allowable expenses, work loss, personal services, waivers of coverage

Under this no-fault statute, there are three types of personal protection insurance (PIP) benefits that a person injured in a motor vehicle accident, such as a car or truck accident, can receive from his or her no fault insurance company. They are: allowable expenses, work loss and replacement services.

Allowable Expenses

Generally, allowable expenses benefits cover the reasonable charges for all products, services and accommodations that are reasonably necessary for an injured person’s care, recovery or rehabilitation. For example: medical bills, diagnostic costs, attendant care, funeral expenses, home modifications, drug costs, rehabilitation bills and related transportation costs for medical services. However, these expenses must be incurred, causally related to the automobile accident and they must be “reasonably necessary.”

Wage Loss

Generally, wage loss consists of the loss of income from work a person would have performed during the first three years after the date of the accident if he had not been injured. Since the benefits are not taxable, the benefits payable are reduced to 85 percent of what a person would have earned. A person 60 years of age or older is not eligible to receive wage loss benefits. However, a person may choose to waive work loss benefits with his own insurance company to receive a reduced premium rate. A person temporarily employed at the time of the car crash shall receive wage loss based on the income from the last full month employed.

Replacement Services

Generally, an injured person is entitled to expenses not exceeding $20 per day for replacement services (also referred to as ordinary household services), that she would have performed during the first three years after the date of the motor vehicle accident had she not been injured. Any claim for replacement services past the first three years of a car accident becomes part of an excess economic claim in a tort auto negligence lawsuit filed against the person who caused the accident.

Insurance Lawyers of Michigan Auto Law

The lawyers of Michigan Auto Law have been specializing in automobile no-fault litigation for more than 50 years. If you have been injured in a car accident or truck accident and need help navigating your no-fault insurance policy, please call one of our expert attorneys for a free case evaluation at (800) 777-0028 or fill out our consultation form. There is absolutely no fee or obligation.

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