Michigan No-Fault Lawyers
Important Information About Michigan No-Fault Insurance
Michigan’s no-fault insurance provides payment for medical expenses, lost wages, and damage to other people’s property, no matter who is at fault for the accident. If you have been denied fair benefits after a motor vehicle accident, contact our attorneys at Lipton Law. We have extensive experience challenging insurance companies who refuse to honor their obligations to policyholders. Our Michigan car accident attorneys are highly skilled and will fight for your legal rights as a no-fault coverage holder.
In the aftermath, an insurance company may take advantage of your vulnerability. When you work with Lipton Law, we’ll handle the insurance company for you. We know what your car accident claims are worth and will fight your insurer so that you get the compensation you deserve. If your auto insurance company has denied your fair claim after an accident, contact a Michigan no-fault lawyer right away. To schedule a free consultation with us about your claim, please call our Detroit personal injury lawyers today at 248-557-1688.
Is Michigan a No-Fault State?
Yes. In fact, Michigan law specifically requires that every vehicle owner must have a certain minimum amount of no-fault insurance to get their license plates. It is illegal to drive a vehicle without no-fault insurance coverage on your vehicle.
What Is Michigan No-Fault Law?
Under the current Michigan no-fault law, car accident victims can have their basic expenses paid for by no-fault benefits. In the event of a car accident, no-fault insurance will pay for your medical bills, lost wages, replacement costs, and any property damage you do to another person’s vehicle. However, no-fault coverage does not apply to repairs to your own vehicle.
Keep in mind that how your no-fault benefits pay out can vary depending on whether or not you are more than 50% to blame for the accident. No-fault insurance will cover all insured parties in the event of an accident, but whether you pay your deductible could change.
How Does No-Fault Insurance Work in Michigan?
The intention behind Michigan no-fault insurance is to protect car accident victims against lawsuits after an accident occurs. The current Michigan no-fault law requires all Michigan drivers to purchase no-fault insurance coverage. This allows victims in Michigan motor vehicle accidents to remain financially secure after an accident. Serious accidents can result in thousands, if not tens of thousands of dollars in medical care and lost income. Michigan no-fault laws prevent this financial burden from falling on Michigan drivers who get in accidents. Even the at-fault driver in an accident will receive no-fault benefits.
What’s more, is that, under the Michigan no-fault insurance law, those who drive without insurance are committing a crime. They could be charged with a misdemeanor, punishable with up to $500 in fines and up to one year in jail. Their license may also be suspended for a certain amount of time.
Who Pays Michigan No-Fault Benefits?
So, who pays for car damage in a no-fault state? If drivers are required to purchase no-fault auto insurance, who is actually responsible for paying out those benefits when an accident happens? According to MCL 500.3114, the “order of priority” rule determines which car insurance companies will make payments after an accident. Below, we briefly outline the order in which each auto insurance company may be required to pay.
- First: The no-fault car insurance company of the injured occupant pays the claim.
- Second: The no-fault auto insurance company of the injured person’s spouse pays the claim.
- Third: The no-fault auto insurance company of the injured person’s relative in Michigan will pay the claim.
- Fourth: The Michigan Assigned Claims Plan assigns a participating auto insurance company to the injured person in the event that they don’t have insurance, or if insurance is not available through one of the other methods above. The Michigan Assigned Claims Plan is administered by the Michigan Automobile Insurance Placement Facility.
Can You Sue in a No-Fault State Like Michigan?
Many auto accident victims in Michigan have trouble receiving full benefits from their insurance companies, even though they are required to have insurance and pay their premiums. You can attempt to file a first-party claim with your insurance company to recover full benefits, but you’ll need a seasoned attorney at your side.
You can also attempt to file a third-party claim if the auto accident resulted in a serious disability or impairment in your life. Your PIP medical benefits and other forms of no-fault coverage will kick in first. If you still have significant losses, you can pursue a claim against the at-fault driver. You will still need to work with your attorney and gather evidence to prove the other driver’s liability.
The No-Fault Car Insurance Policy
There are three parts to a no-fault car insurance policy that drivers in Michigan are required to buy. These are as follows.
Personal injury protection (PIP): PIP pays for all of your medical costs. It also covers up to 85 percent of the income you would have earned over the span of three years if you hadn’t suffered an injury.
Property protection insurance: This provision pays for the damage that your car caused to other people’s property, up to $1 million. It also covers damage your car does to another person’s properly parked vehicle, but it does not pay for any other damage to vehicles.
Residual liability insurance, bodily injury liability coverage, and property damage: This no-fault provision protects insured drivers from being sued because of a car crash. However, the no-fault law will vary if a motorist causes an accident that results in death, serious injury, or permanent disfigurement.
Changes to No-Fault Michigan Law
In July 2020, Michigan auto insurance coverage laws changed for the first time since 1973. Until the recent change, Michigan drivers only had the option of purchasing unlimited no-fault coverage. Now, they have more options. These changes make the claims process more complicated, which is why it is more important than ever to work with a skilled attorney.
Under the new Michigan no-fault insurance law, drivers in Michigan can choose between the following coverage options.
- Unlimited personal injury protection (PIP) coverage
- PIP coverage up to $500,000
- PIP coverage up to $250,000
- PIP coverage up to $250,000 with some PIP medical benefits exclusions
- PIP coverage up to $50,000 (You must qualify for this level of coverage.)
It is also possible for qualifying individuals to opt out of PIP coverage completely. Especially in serious car accident cases where the injuries are severe, insurance claims can be further complicated when limited coverage is involved.
Is Michigan Still a No-Fault State 2023?
Yes. Many people consider the current no-fault insurance law to be even more complicated than the previous no-fault laws. Although consumers have more options now than they did before, this is what has complicated the claims process. For this reason, it is more important than ever to work with a skilled Michigan no-fault lawyer for your claim. The Detroit personal injury lawyers at Lipton Law are here to help Michigan residents fight back against greedy insurance companies. You deserve compensation for medical expenses, lost wages, and even pain and suffering compensation. Contact us as soon as possible to find out how we can help with your no-fault claim.
Call Our Michigan No-Fault Lawyers Today
While the specifics of Michigan’s no-fault benefits may seem straightforward, auto accident cases involving insurance claims can be complex. Even with Michigan’s no-fault car insurance policy at work, individuals face obstacles when filing no-fault benefit claims. Our attorneys are familiar with the tactics insurers use to avoid fair payouts. We aggressively represent our clients because we know you need full compensation.
At Lipton Law, our Southfield lawyers know there is no time to waste in helping you obtain a fair result. Contact us online today or call 248-557-1688 to learn more about options regarding a no-fault benefits claim.