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After a Michigan auto accident, can I collect No-Fault wage loss and unemployment benefits?

January 27, 2011 by Steven M. Gursten

Auto insurance attorney says you can get both, but only in specific situations, and there will be important issues to consider

Car accident victims always have questions about No-Fault insurance. One of the most frequent questions we have is whether a person injured in a car accident can simultaneously collect No-Fault insurance wage loss benefits and unemployment benefits.

Most auto insurance attorneys will say no. And in most situations, that is the correct answer. After all, No- Fault wage loss means that you are unable to work because of your injuries, hence the name – wages you have lost because of your car accident-related injuries. On the other hand, unemployment means that you are ready, willing, and able to work now but cannot find a job. To collect both is often considered fraud, as someone cannot be disabled from accident-related personal injuries and ready, willing, and able to work at the same time.

But not always.

No-Fault wage loss and unemployment benefits can be collected at the same time if a car accident victim is able to work with restrictions. Wage loss and unemployment can also be collected if a car accident victim can do a job he or she sometimes did in the past. Collecting both wage loss and unemployment would not be considered fraud in this particular circumstance.

Under these circumstances, you will still need to have an employer that will allow that person to return to work with medical restrictions.

It is also very important to consult with an experienced auto accident attorney who is very familiar with the Michigan No-Fault law before filing for unemployment benefits. It is important to discuss with your attorney how your unemployment status will affect your third-party pain and suffering case.

What is Michigan No Fault wage loss?

For those unfamiliar with this important No-Fault insurance benefit, wage loss is exactly what it sounds – it compensates you for your wages lost, due to being unable to work because of personal injuries from a car accident. It is paid by your own auto insurance company for up to the first three years after an auto accident under the Michigan No-Fault Act.

Wage loss is capped, however, and any wage loss above the maximum amount becomes the responsibility of the wrongdoer driver and owner of the car who caused the auto accident.

Here’s the current wage loss rate in Michigan.

Steve Gursten is recognized as one of the nation’s top attorneys handling serious car and truck accident injury cases and auto insurance No-Fault litigation. Steve speaks and writes extensively on Michigan’s No-Fault laws.

Related information about the Michigan No-Fault law:

What benefits are available with Michigan No-Fault insurance?

Time limits for filing car accident claims

Dealing with Michigan auto insurance companies

Michigan Auto Law is the leading largest law firm exclusively handling car accident, truck accident and motorcycle accident cases throughout the entire state for more than 50 years. We have offices in Farmington Hills, Detroit, Ann Arbor, Grand Rapids and Sterling Heights to better serve you.

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