Understanding Michigan’s No-Fault Auto Insurance Law: What Drivers Need to Know

Driving in Michigan comes with a unique set of rules, especially when it comes to auto insurance. Michigan’s no-fault auto insurance laws differ from many other states and can be confusing if you’ve never considered it before. To properly understand no-fault law and what it means for you, it’s helpful to break down the basics of this law, how it affects you after a car accident, and what you should know about your rights and responsibilities.

What is No-Fault Insurance?

No-fault insurance is where, if you’re in a car accident, your own insurance covers your medical expenses and lost wages (to a point), no matter who caused the accident. This differs from other states where the person who caused the accident (or their insurance) will pay the victim’s medical bills. Interestingly, only 12 out of the 50 states use a no-fault system. 

There are several key terms to know when discussing Michigan’s no-fault laws. The first is Personal Injury Protection (PIP). This part of your insurance covers your medical expenses and a portion of lost wages if you’re hurt in an accident. Similarly, Property Protection Insurance (PPI) covers damage your car does to other people’s property, like buildings or fences. What if you’re sued for an accident that seriously injures or kills someone? While an injured party would file a claim through their own PIP, your Residual Bodily Injury Liability Insurance would also be implicated.

How will Michigan’s No-Fault System Affect My Claim Accident?

After an accident in Michigan, you file a claim with your insurance company, regardless of who caused the accident. Your PIP coverage will help pay for your medical bills, part of your lost wages if you can’t work, and replacement services like house cleaning or yard work if you cannot do them. 

Really, the no-fault system was created to ensure that every person in an accident receives the medical care they need, regardless of whether the other party in the accident has the proper insurance. That being said, it’s imperative to understand the no-fault system and protect yourself with your own insurance. There is a minimum amount of auto insurance coverage required by law. 

Speak with a No-Fault Michigan Auto Accident Lawyer Today

As a driver in Michigan, it’s your responsibility to have no-fault insurance. If you’re caught driving without it, you could face fines, and you won’t have coverage if you get into an accident. On the other hand, you have the right to certain coverages from your insurance if you’re in an accident.

Recovering from a car accident is traumatic and stressful enough without added pressure from your insurance company and trying to understand the no-fault legal system. The attorneys at Giroux Pappas Trial Attorneys have won cases for clients all over the country since 1989, earning millions for accident victims just like you. More than that, we’re proud to treat our clients like our family because we know that you need support and guidance to recover and move on with your life. Contact us today to speak with a legal professional.