First Party Car Insurance: What You Need To Know
First party car insurance is the personal protection insurance that all drivers must have under Michigan’s No-Fault auto insurance law. It provides PIP benefits that car accident victims can rely on to pay for accident-related medical bills and lost wages while they are recovering and rebuilding their lives.
What is first party car insurance?
First party car insurance is the coverage required of all drivers under Michigan’s No-Fault law that provides crash accident victims with the benefits they need to recover and rebuild their lives. It pays for medical bills, wage loss, medical mileage, attendant care and replacement services.
Can I drive any car with this insurance?
If you have first party car insurance, then you can drive any motor vehicle. Whether you are driving in Michigan or out-of-state, if you have this type of insurance in the form of Michigan No-Fault auto insurance, then you will be entitled to No-Fault PIP benefits if you are injured in a car accident.
How much coverage do I need?
Our recommendation is that Michigan drivers choose the No-Fault PIP option with unlimited medical coverage. It will protect you and your family by making sure you have No-Fault medical coverage available to provide the necessary medical care and treatment if you or a family member is injured in a car crash.
To learn more about our insurance recommendations as new No-Fault PIP medical benefits coverage levels become available in auto insurance policies issued or renewed after July 1, 2020, please check out our blog post, “Recommended Car Insurance Coverage For New No-Fault Law.”
How do I make a first party car insurance claim?
To collect on a claim after you were injured in a car accident, you must file a No-Fault application with the applicable auto insurance within ONE YEAR from the date of your car accident. (MCL 500.3145(1))
If you fail to file your application (which is also called an “application for No-Fault benefits” or “notice of injury”) on time – within one year from the date of your car accident – then you will forever lose any benefits to which you might be entitled.
Who pays my PIP benefits with this claim?
If you have your own auto insurance policy in which you are the “named insured,” then your own auto insurer will pay your PIP benefits.
Otherwise the No-Fault law’s “priority” rules will determine what insurer is responsible. Generally – albeit subject to certain exceptions – if you don’t have a policy, then the applicable insurance company to pay your PIP benefits will be your spouse’s insurer or the insurer for a family member who lives with you.
If you don’t have coverage through any of these sources, then you will file your application for PIP benefits with the Michigan Assigned Claims Plan and they will assign an auto insurance company to pay for your benefits.
Injured and need a lawyer? Call Michigan Auto Law
If you have been injured in a motor vehicle accident and you have questions about your legal rights to Michigan No-Fault benefits under your first party car insurance, you can call toll free anytime 24/7 at (800) 777-0028 for a free consultation with one of our experienced auto accident attorneys. You can also get help from an experienced attorney by emailing [email protected] or you can use the chat feature on our website.