How the Michigan No-Fault Insurance Laws Affect Personal Injuries from Car Accidents

Last updated 11 months ago

No-fault insurance policies provide a guaranteed amount of coverage in an auto accident, but they also restrict the litigation abilities of the parties involved. A Michigan personal injury lawyer can help you navigate insurance claims paperwork following an accident to receive adequate compensation and, if necessary, help you file a lawsuit for damages that are not covered under no-fault insurance. Learn more about Michigan no-fault insurance claims and coverage below:

What a Basic Policy Covers

No-fault auto insurance policies contain three basic components: personal injury protection (PIP), property protection (PPI), and residual bodily injury and property damage liability (BI/PD). Personal injury protection covers necessary medical costs and up to 85% of lost wages up to certain income and time limits. Property protection can cover up to $1 million for damages caused to other people’s property in the state of Michigan. BI/PD coverage pays up to $20,000 for a single person who is hurt or killed in an accident, up to $40,000 for each accident if multiple people are injured, and up to $10,000 for out-of-state property damage.

What It Doesn’t Cover

It isn’t uncommon for personal injury and property expenses to exceed the limits of an insurance policy and become out-of-pocket costs. These fees can result in financial ruin if they are not addressed with the assistance of an auto accident attorney. Remember that certain items, such as collision and comprehensive coverage, are not included in basic policies and, without them, you will be liable for the costs of repairing your car.

Extenuating Circumstances

Despite the limitations of Michigan’s no-fault insurance policies, a personal injury victim can still choose to seek compensation for items that are not covered under his or her no-fault insurance policy. You retain the right to sue for an accident that was serious enough to result in a permanent disfigurement, serious injury, or death.

Jay Trucks & Associates has been serving Flint, Saginaw, Traverse City, and the rest of the Lower Peninsula of Michigan for over 30 years in cases involving personal injury, Social Security, and insurance claims. Find out more about our practice online or call (888) 481-2579 to schedule a professional consultation today.