The Michigan No-Fault Insurance Law provides for prompt payment of various benefits, without regard to fault in a crash. Michigan is one of the last no-fault states and the system was designed to help injured people quickly.

The car accident lawyers at the Lee Steinberg Law Firm are experts on Michigan No-Fault Law and have a team of Michigan car accident lawyers dedicated to helping you obtain the benefits and money you deserve.

Our Michigan car accident attorneys have represented individuals injured in Michigan car, truck, and motorcycle accidents for over 50 years. Call our office today. You pay nothing unless we win your case. Let us help you by calling 1-800-LEE-FREE (1-866-503-3043).

What is Michigan’s No-Fault Law?

The Michigan No-Fault Law is the law covering Michigan motor vehicle accidents. The law was enacted in 1973 and allows a person injured in a car accident to receive certain benefits, no matter who is at fault for causing the accident. This means even if you were at fault for causing a car accident, you may still be entitled to no-fault benefits. Although the law has changed dramatically over the past 50 years, the benefits available are still extensive.

What Are Michigan’s No-Fault Benefits?

Michigan no-fault benefits, also known as personal injury protection (PIP) benefits, are specific items that auto insurance company must pay an injured person following a motor vehicle accident. These benefits are found within MCL 500.3107 and other parts of the statute.

Medical Expenses:

The most important benefit is the payment of medical bills resulting from the crash. Under the law, the car insurance company must pay medical bills not covered by health insurance up to the PIP coverage limit. This includes doctor’s bills, hospital stays, surgeries, physical therapy, rehabilitation, medical equipment, and any other treatment, service, or product related to treatment for car accident injuries.

Additional medical benefits include prescription coverage and out-of-pocket costs, such as deductibles and co-pays. The car insurance company must reimburse the injured person for these expenses. MCL 500.3107(1)(a).

Lost Wages:

Another significant benefit is the payment of lost wages. The car insurance company must pay 85% of gross wages for up to three (3) years from the accident date. The wage rate is based on what the injured person was making during the crash, subject to a cap that adjusts each year. An injured person must usually provide a disability script and wage information to the insurance adjuster to obtain lost wages. There are special rules for self-employed individuals and business owners. MCL 500.5107(1)(b).

Replacement Services:

If a person cannot complete their household chores due to auto accident injuries – such as laundry or cleaning the home – then an individual replacing those services is entitled to receive $20.00 per day for this work. Family members, friends, or third-party vendors are all eligible for payment of this benefit. MCL 500.5107(1)(c).

Attendant Care:

If more personal care is needed, such as assisting an injured person in the bathroom, getting dressed, changing bandages, hygiene, or other similar tasks, family members and friends can also receive payment for this work. Attendant care is paid at an hourly rate, just like an attending nurse is paid in a medical setting. MCL 500.3107(1)(a).

Who Pays Michigan No-Fault Benefits?

Michigan no-fault benefits are paid by car insurance companies, such as State Farm, Allstate, or Progressive Insurance. The auto insurance company responsible for paying these no-fault benefits depends on different factors. Under Michigan law, your own car insurance company always pays your no-fault benefits.

If you don’t own a car, the car insurance for a resident relative – such as a parent, sibling, spouse or other blood related family member – pays no-fault benefits. This occurs even if the relative’s car or truck was not involved in the collision.

If a person lives alone or there is no auto insurance in the household at the time of the accident, the injured person can apply for Michigan no-fault benefits through the Michigan Assigned Claims Plan (MACP). This Plan will then assign an insurance company – such as Farm Bureau or Hanover Citizens Insurance – to pay no-fault benefits. The assigned insurer must pay up to $250,000 in no-fault benefits.

Can Everyone Get Michigan No-Fault Benefits?

Almost all individuals injured in a motor vehicle accident in Michigan are entitled to no-fault benefits. However, there are a few caveats.

Under Michigan law, specifically MCL 500.3113, if you are the owner of an uninsured car or truck involved in the crash, you are not permitted to make a claim for Michigan no-fault benefits. This is true even if you did not cause the wreck. This is one of the many reasons why it is so important to purchase auto insurance.

In addition, non-Michigan residents are not allowed to get no-fault benefits, unless the person owned a motor vehicle that was registered and insured in Michigan.

How Much PIP Medical Coverage Is Allowed?

For many years, all policies provided for unlimited medical coverage. That is no longer the case. There are now limits to how much medical or personal injury protection (PIP) coverage a driver can purchase. The choices in PIP coverage include:

• Unlimited coverage
• $500,000 in PIP coverage
• $250,000 in PIP coverage
• $50,000 in PIP coverage for certain Medicaid eligible individuals

In certain situations, individuals with qualified health insurance coverage can now entirely opt out of PIP coverage. This means the person maintains no medical coverage through the car insurance carrier. There are only two ways an individual can opt out of PIP:

1. The person is covered under both Part A and Part B of Medicare, or
2. The person’s spouse and all resident relatives covered by the policy have “qualified health coverage” or are covered under another auto policy with PIP coverage. Qualified health coverage means private health insurance that does not exclude or limit coverage for injuries related to a car or truck accident and has a deductible of $6,000 or less.

Although choosing to opt out will save some money, selecting this level of insurance is not advisable. Medicare does not even come close to covering all medical needs and often results in the patient incurring significant bills.

Private insurance carriers will seek reimbursement for whatever benefits they pay out. This reimbursement comes from the pain and suffering negligence case and can dramatically reduce your ultimate settlement amount.

Which Car Insurance Company Pays for the No-Fault Benefits?

There is an order of priority that details which auto insurance company is responsible for paying no-fault benefits following a crash. This order depends upon different factors, but in general, this is the order:

1. Your own auto insurance carrier
2. The auto insurance carrier of a resident relative.
3. The Michigan Assigned Claims Plan (MACP)

An injured person always goes to their own car insurance first to pay PIP benefits.

Company Owned Vehicles

An employee, their spouse, or a relative domiciled in the same household who sustains an injury while an occupant of a vehicle owned by the employer receives no-fault benefits from the auto insurance carrier for the employer.

Uber or Lyft Rides

A person injured while an occupant during an Uber or Lyft ride can receive no-fault benefits from the driver’s auto insurance carrier, so long as the injured person doesn’t have auto insurance of their own. For example, suppose an Uber driver has Progressive Insurance. In that case, Progressive must pay the no-fault benefits for any passenger injured in a crash that is not otherwise covered by a no-fault policy.

Bus Riders or Bus Passengers

Individuals injured while on a bus can get no-fault benefits through the bus owner. This is the case whether on a city bus, school bus, private bus or even a bus operated by or providing service to a nonprofit organization. The bus must be registered in Michigan.

Pain and Suffering Compensation

Besides getting no-fault benefits, a person injured in a Michigan car accident or truck accident can also obtain compensation for their pain and suffering. This is called a third-party claim. However, a pain and suffering claim is paid by the auto insurance company for the negligent driver and owner. This is different than a claim for first-party benefits.

An injured person can only pursue a third-party claim if the other driver was at least 50% at-fault for causing the accident and the injured person sustained a “threshold” injury. The three categories for threshold injury in Michigan are (1) death, (2) permanent serious disfigurement, and (3) serious impairment of body function. Most Michigan car accident and Michigan truck accident cases involve the last category.

Proving a threshold injury is not easy and usually requires the professional help of an attorney. The Lee Steinberg Law Firm has been helping car accident victims obtain the no-fault benefits and pain and suffering compensation they deserve for over 50 years.

Call our office today. You pay nothing unless we win your Michigan car accident case. Let us help you by calling 1-800-LEE-FREE (1-866-511-0594).

More Michigan No-Fault Law Information

What are First-Party Benefits?  There are many benefits available to individuals following a car, truck and even a motorcycle accident. These benefits are often called no-fault benefits or first-party benefits.

How Do I Start a No-Fault Claim? Starting a no-fault claim is easy.  Find our more about starting a claim and the Michigan no-fault law.

Pain and Suffering Claims: Not only can you get no-fault benefits from the insurance company, if the other driver caused the crash and injuries, you can obtain compensation for pain and suffering. But there are special rules in Michigan about these cases.  

Mini-Tort: Who pays for the vehicle damage after a crash? It depends on what kind of coverage you purchased. Find out more here.

Uninsured Motorist Claim: Injured by a person who did not have auto insurance? Involved in a hit-and-run accident? You can still make a claim for pain and suffering through the proper auto insurance carrier.

Underinsured Motorist Claim: Injured by a driver who has insurance, but not enough to cover your injuries? There are additional avenues for recovery.

The Best Michigan Car Accident Lawyers

For over 50 years, The Lee Steinberg Law Firm has helped injured victims win their cases and obtain the compensation they need and deserve. We are experts in the Michigan No-Fault Law.

The results from a car accident are traumatic. Our team of Michigan car accident lawyers takes the burden off you and your family while ensuring you get the best representation.

Our numerous 5-star reviews are a testament to the satisfaction and trust our clients place in our legal services. Each maintain an unwavering commitment to delivering personalized, professional, and effective representation. We pride ourselves on clear communication, dedicated advocacy, and positive outcomes that meet or exceed client expectations. Your success is our priority.

Please call the Michigan car accident lawyers at 1-800-LEE-FREE (1-866-696-9146) for a free consultation or fill out the Free Case Evaluation Form so we can answer any questions you have about your accident.