What Is a No Fault Accident in Michigan?

A no fault accident is usually any auto accident. Michigan requires every car owner to get no fault insurance in order to receive license plates. It is illegal to drive or let someone else drive your car without a no fault insurance policy. There are certain exceptions and details, which will be discussed below, but generally, no fault insurance covers any accident regardless of how many cars are involved, who is at fault, or whether pedestrians are involved. Regardless of who is at fault, no fault insurance pays for medical expenses, wage losses, replacement services, and damage to other people’s property. However, no fault insurance will not cover your car repairs.

Dealing with insurance companies after an accident can be daunting for many people. If you or a loved one has been in a car accident, our Detroit no fault, car accident attorneys help get the compensation you need.

Who Is Covered Under No Fault Insurance?

A no fault insurance policy covers you and everyone in your family living in your home. The insurance policy will even cover you and your family members when you are passengers in another vehicle or when you or your family members are pedestrians. The policy also covers bicyclists and motorcyclists hurt in a car accident you are involved in. Your no fault insurance policy will also cover other uninsured drivers, passengers, or pedestrians hurt in an accident you are involved in.

What Is Covered in a No Fault Accident?

A no fault insurance policy has three components: personal injury protection (PIP), property protection (PPI), and residual liability.

PIP Benefits

Under your PIP benefits, no fault insurance pays all your medical expenses. The policy must pay for all reasonable expenses for reasonably necessary products, services, and accommodations for your care, recovery, or rehabilitation. This can include home modifications, attendant care, and transportation for medical care. Up to 85% of your lost wages will be covered up to the annually adjusted limit for as long as three years. The 2014-2015 wage-loss coverage limit is $5,392 per month. In addition, if you are killed in a car accident, then the policy would pay as much as the same wage loss amounts to your family members depending on how much of your earnings and what benefits they would have received. Finally, no-fault insurance will pay as much as $20 per day for replacement services, meaning everyday services, such as housekeeping and yard maintenance, that you would have had if your loved one had not been injured.

PPI Benefits

Under your PPI benefits, no fault insurance covers up to $1 million in damage that your car does to other individuals’ property. This means damage to other peoples' buildings, fences, and mailboxes for example. It also covers damage to properly parked cars belonging to other people. However, it does not cover damage to your own car and generally does not cover damage to another car that is improperly parked, moving, or part of the accident.

Residual Liability Insurance

The no fault insurance system is ultimately meant to streamline the ability of accident victims to receive compensation. Drivers can be sued only in very limited special circumstances, and if you are found responsible, then your minimum policy will pay up to certain limits. As courts sometimes award more than what the minimal policy covers, some people do purchase additional coverage to supplement the minimal policy.

You may be sued if:

• Someone is killed, seriously injured, or permanently disfigured in an accident you cause in Michigan
• When an occupant in one of the cars involved in the accident is a non-resident and the car is not registered in Michigan
• You are in an out-of-state accident
• If you are 50% or more at fault for an accident in which the damage done to a person’s car is not covered by insurance

Supplemental Types of Insurance

Collision Coverage — Since your no-fault insurance policy will not cover damage to your car, you can purchase collision coverage that will. Collision coverage comes in three basic types: limited, standard, and broad. These types vary insofar as how much damage the insurance policy will cover, whether you need to pay a deductible, and how your degree of fault determines coverage.

Comprehensive Coverage — In general, comprehensive coverage will pay for your car if it is stolen, damaged by a falling object, damaged after hitting an animal, vandalized, or damaged by fire or flood.

After a Car Accident, Turn to Our Detroit No Fault Insurance Attorneys

At Sachs Waldman, our Detroit personal injury attorneys give clients personalized attention and take the time to thoroughly analyze each unique set of facts to come up with a plan to go forward. Our well respected personal injury law practice, with concentrations in no fault accidents and insurance claims, is here to get you the compensation you deserve. Contact our Detroit personal injury law firm today at (313) 965-3464 for a free consultation.