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What is a reasonable rate for Michigan No Fault mileage reimbursement?

July 16, 2008 by Steven M. Gursten

Michigan no fault insurance lawyers should now be insisting on 58.5 cents per mile, which is the new IRS business mileage rate that began on July 1, 2008, for all medical mileage claims in litigation with auto insurance companies. The new mileage rate has been raised significantly from the 50.5 cents per mile that was the old IRS mileage rate before July 1st, reflecting the higher price of gas.

Gas Costs Add Up for Medical Appointments
Due to the high cost of gas today, for someone who has suffered a serious injury from a car accident, they can be incurring hundreds or even thousands of dollars in mileage costs going to and from doctor, hospital and physical therapy visits. For many of my clients who live outside of Metro Detroit, such as in Northern Michigan or the west side of Michigan, it is common for them to have to drive 30-45 minutes or more for doctor visits and physical therapy. At 3 to 5 medical and therapy appointments per week, the gas costs add up very fast.

However, under Michigan’s no fault law, people are able to seek reimbursement from their own no fault auto insurance company. You do not need an attorney for this. Mileage reimbursement is a mandatory no fault benefit that anyone who has purchased automobile insurance in this state is entitled to.

Unfortunately, the rates for mileage reimbursement also fluctuate all over the place. Some insurance companies are more fair than others on what they will voluntarily reimburse for mileage claims.

No Need to Hire an Attorney if PIP is being paid
For people who have not hired a no fault attorney – and as long as your own no fault insurance company is paying your PIP no fault benefits voluntarily, there certainly is no need to hire a lawyer or have a lawyer try to take an attorney fee on benefits that are already being voluntarily paid by the insurance company – the question becomes what is a fair and reasonable rate to charge for reimbursement for the mileage costs you are incurring? There is no “one” set rate for medical mileage under Michigan’s no fault law. The inquiry is what is reasonable.

How do I determine what is Reasonable?
In determining what is reasonable, using a trusted government authority such as the IRS rate for business mileage can be helpful. In any regard, our Michigan no fault insurance lawyers would strongly advise you not to accept the rate of 8 or 9 cents a mile, that we have seen some auto insurance company adjusters in Michigan, such as Allstate, State Farm, and Farm Bureau try to pay.

Coincidentally, Allstate and State Farm were both judged this week to be two of the very worst insurance companies in how they treat their own customers, how they raise premiums, deny claims, and how they refuse to honor contractual promises. This report was released on July 9th by the American Association for Justice.

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