Michigan No Fault Law Explained
How does the Michigan No Fault Insurance Law work?
In order to legally drive a motor vehicle in Michigan, that vehicle has to be covered by a basic No Fault Insurance. The owner of the vehicle needs to present proof of insurance in order to obtain a license plate, driving without insurance is a misdemeanor; failure to provide proof of insurance if you are pulled over is a ticketable offense and carries a fine.
Motorcycle/automobile accidents are are covered by different provision, as motorcycles are not considered motor vehicles under Michigan law.
Who pays for what under the Michigan No Fault Insurance Law?
Michigan is a No Fault Insurance state. Simply put, that means regardless of who causes an accident, who is at fault or even if the other driver is insured, your Michigan vehicle insurance provider will pay for most of your economic losses related to the accident, including:
• Your medical expenses
• Your lost wages
• Damages the vehicle may have caused
• Damages you are found liable for
What about lost wages?
If a doctor finds you unable to work due to injuries sustained in an auto accident, Michigan No Fault Law provides for you to receive a portion of your lost wages. Lost wages are a tax-free benefit, and as such reimbursed at 85% rather than the full 100%. There is a three year time limit to this benefit; Michigan law also sets a monthly ceiling or cap on the amount of lost wages that your insurance company is required to pay you.
Will Michigan No Fault Insurance pay to fix my car?
Basic No Fault insurance does not pay for repairs to your vehicle; you’ll need to purchase additional insurance is required to cover damage to your vehicle and its contents.
Why do I need a lawyer?
You can still sue or be sued under the Michigan No Fault insurance laws under certain situation:
• If the driver causes an accident in which someone seriously injured or killed.
• If the driver is involved in an accident in Michigan with a non-resident who is an occupant of a vehicle not registered in Michigan.
• If the driver is involved in an accident in another state where lawsuits are permitted.
If you are found legally responsible for an accident, the minimum coverage a basic No Fault Insurance policy will pay up to is:
• $20,000 for a person who is hurt or killed in an accident.
• $40,000 for each accident if several people are hurt or killed.
• $10,000 for property damage out-of-state.
Call-Lee-Free if you, a family member or friend have been injured in an auto accident in Metro Detroit, Grand Rapids, Flint, Grand Blanc, Flint, Saginaw or the Traverse City area. With offices across Michigan, the Lee Steinberg Law Firm are dedicated to injury victims’ rights and strive to eliminate the fear and confusion from the legal process.