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.
- Allowable expenses
- Work loss
- Replacement services
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. This includes, but is not limited to, medical bills, diagnostic costs, attendant care, funeral expenses, home modifications, drug costs, rehabilitation bills and related transportation costs for medical services.
It is important that a car accident victim claiming these benefits be able to show that the related expenses are:
- Subject to “reasonable charges”
- Causally related to the car accident
- “Reasonably necessary” to the victim’s car, recovery or rehabilitation
Generally, wage loss or “work loss” benefits are based on “the loss of income from work” that a person “would have performed during the first 3 years after the date of the accident if he or she 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 who is not eligible to receive wage loss benefits may choose to waive work loss benefits with his own insurance company to receive a reduced premium rate. A person who was temporarily unemployed at the time of the car crash shall receive wage loss “based on earned income for the last month employed full time preceding the accident.” (See MCL 500.3107a)
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.
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 experienced attorneys for a free case evaluation at (800) 777-0028 or fill out our consultation form. There is absolutely no fee or obligation.
We are here to help you.