Benefits of Driving in a No-Fault State - Lee Steinberg Law Firm

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Benefits of Driving in a No-Fault State

No Fault Car

The Benefits of the Michigan No-Fault Law

Michigan is a no-fault state for automobile accidents. This means individuals can get certain benefits directly from their car insurance, even if they were at-fault for causing the crash. These benefits are plentiful, and can make a huge difference in getting lost wages and medical bills paid quickly after a crash. The Michigan car accident attorneys at the Lee Steinberg Law Firm explore some of the benefits of driving in a no-fault state. The number of states that offer no-fault coverage are dwindling, but the system has big advantages, especially in Michigan.

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.

This is also true in Michigan. However, the medical coverage available to individuals is very high. In fact, if a person chooses, they can still purchase unlimited medical. This means the auto insurer must pay for all medical treatment related to an auto accident for life, with no dollar limitation. 

Most health insurance plans have limitations on available care, such as physical therapy and chiropractic visits. There are no hard caps in auto plans. As a result, the coverage from auto insurance is usually vastly superior to regular health insurance. Auto insurance will cover serious medical treatment, such as nursing care and catastrophic care, 

Payment of Wage Loss

Michigan also includes lost wages as a no-fault benefit. Wage loss benefits are available for up to 3 years from the date of the accident. The carrier must pay 85% of your gross wages. For example, suppose a person earns $1,000 per week from their job but cannot work due to auto accident injuries. In that case, the auto insurance company must pay $850 for that week’s lost income. Payment can begin shortly after the injured person cannot work. 

Prompt Payment of Benefits

One of the main reasons for the switch to a no-fault system 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, Michigan 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 take years, the injured individual can get her bills paid and wages going quickly.

Payment Regardless of Fault 

You receive coverage and benefits even if you are at fault for the accident, providing peace of mind that you are financially protected.

Penalties for Insurance Company’s Unreasonable Denial

There are penalties for insurance companies that unreasonably deny payment of no-fault benefits. In Michigan, there is a 12 percent penalty interest for an insurance company refusing to pay a benefit that is overdue. These penalties force insurance carriers to pay claims, giving injured individuals access to medical care and lost wages.

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 the expenses they incur for these patients. This can create a significant financial burden on hospitals and medical centers. The Michigan No-Fault Law provides economic 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.

However, this stability is under attack as the insurance industry fights for lower reimbursements, an unfair fee schedule, and less coverage. 

Fewer Lawsuits in Court

By ensuring that accident-related medical expenses and wage losses are covered by your own insurance, the no-fault system reduces the number of lawsuits over minor accidents. 

Extensive Coverage

Michigan’s no-fault law extends benefits to various individuals involved in accidents, including pedestrians, bicyclists, or motorcyclists injured by a motor vehicle. So long as a motor vehicle was involved in causing the injury and subsequent treatment, a person can apply for and obtain Michigan no-fault benefits. 

Death Benefits 

The Michigan no-fault law includes something called survivors’ benefits. This means if a person dies from to a motor vehicle accident, their dependent(s) can obtain certain benefits. These benefits include lost wages for 3 years as well as “contribution of things of tangible economic value.” This includes things like lost pension or retirement money. This benefit also includes coverage for funeral and burial expenses. MCL 500.3108

Michigan First-Party Car Accident Lawyers

There are many good benefits about driving in Michigan. Besides the physical beauty, you are also protected by a comprehensive Michigan no-fault system. The legal experts at the Lee Steinberg Law Firm have been handling first-party claims for over 50 years. 

Our team of tough and aggressive Michigan car accident lawyers knows what it takes to get you the benefits you paid for and deserve.

Call us at 1-800-LEE-FREE (1-866-696-9146) for a free consultation. We can answer your questions. Our office will go after the insurance company for your unpaid no-fault benefits. We have collected hundreds of millions of PIP benefits for our clients. And we never charge anything until we win your case.