Michigan has been a no-fault states since 1973. Although the Michigan No-Fault Law has been maligned somewhat in the news lately, there are many benefits to the Michigan No-Fault Law and various no-fault laws in general. The following is a list of 5 benefits in particular:
1. Payment of Medical Expenses
Most no-fault states cover medical expenses incurred due to a car accident. Through personal injury protection, or PIP, the car insurance company responsible for paying the no-fault claim must pay medical expenses, such as ambulance bills and hospital bills.
In Michigan, car insurance companies must pay all reasonable medical charges related to the car accident. This benefit is for life and there is no dollar limit. No other state has such a beneficial system.
2. Payment of Wage Loss
Many no-fault states also include wage loss benefits. Though wage loss benefits are capped at a certain amount, this benefit is very important for individuals injured in a car accident. In Michigan, wage loss benefits are available for up to 3 years from the date of the accident.
3. Prompt Payment of Benefits
One of the main reasons for the increase in no-fault schemes in various states during the 1970s was the promise of prompt payments of economic benefits for individuals injured in car and truck accidents. Although insurance companies attempt to deny claims, in Michigan the case law is clear. Insurance companies must promptly pay no-fault benefits when reasonable proof of the benefit is presented.
This is a major feature of the Michigan No-Fault Law. Rather than having to sue the at-fault driver for medical bills and wages, which can takes years, the injured individual can get her bills paid and wages going quickly.
4. Penalties for Insurance Company’s Unreasonable Denial
In many no-fault states, that are penalties for insurance companies unreasonably denying the payment of no-fault benefits. In Michigan, there is a 12 percent interest penalty for an insurance company refusing to pay a benefit it should have paid. These penalties force insurance carriers to pay claims, thereby giving injured individuals access to medical care and lost wages.
5. Financial Stability for Medical Centers
Under federal law, hospitals must treat individuals who present to an emergency room for care. Many ER patients do not have insurance. In these situations, the hospital must financially write-off these patients. This can create a large financial burden on hospitals and medical centers. The Michigan No-Fault Law provides financial stability. When uninsured patients involved in a car accident present to an ER, the hospital knows it will get reimbursed for the medical treatment it provides – treatment that can often be very expensive.
The Lee Steinberg Law Firm, P.C. has been helping car accident victims for over 40 years. Our team of experienced Michigan car accident lawyers and Michigan truck accident attorneys can help you with your Michigan no-fault claim and get you the benefits and compensation you deserve.