No Fault Insurance Michigan – Everything You Need to Know

No fault insurance is a type of automobile insurance that is mandatory in the state of Michigan. It provides coverage for medical expenses, lost wages, and other injury-related expenses in the event of an accident, regardless of who is at fault. In this article, we will discuss everything you need to know about no fault insurance in Michigan.

What is No Fault Insurance in Michigan?

No fault insurance in Michigan is a type of automobile insurance that provides coverage for medical expenses, lost wages, and other injury-related expenses in the event of an accident. It is called “no fault” because it provides coverage regardless of who is at fault for the accident. This means that even if you are at fault for the accident, your insurance will still cover your medical expenses and lost wages.

No fault insurance is mandatory in the state of Michigan. This means that all drivers must have no fault insurance coverage in order to legally drive on Michigan roads.

How Does No Fault Insurance Work?

When you are involved in an accident in Michigan, your no fault insurance coverage will provide you with medical expense coverage, wage loss benefits, and other related expenses, regardless of who is at fault for the accident.

There are three different components to no fault insurance in Michigan:

1. Personal Injury Protection (PIP)
2. Property Protection Insurance (PPI)
3. Residual Liability Insurance

Personal Injury Protection (PIP)

Personal Injury Protection (PIP) is the most important component of no fault insurance in Michigan. PIP provides coverage for medical expenses, wage loss benefits, and other related expenses in the event of an accident.

Under PIP, your insurance company will pay for your medical expenses up to a certain limit, regardless of who is at fault for the accident. This limit is typically set at $250,000 in Michigan, but can be increased if you choose to purchase additional coverage.

PIP also provides wage loss benefits, which are designed to replace a portion of your lost wages if you are unable to work due to your injuries. The amount of wage loss benefits you receive will depend on your income at the time of the accident.

Property Protection Insurance (PPI)

Property Protection Insurance (PPI) provides coverage for damage to property, such as buildings and fences, in the event of an accident. PPI is required under Michigan law, and the minimum coverage limit is $1 million per accident.

Residual Liability Insurance

Residual Liability Insurance provides coverage for damages that you may cause to other people’s property or for personal injuries that you may cause to others. It is important to note that Residual Liability Insurance does not provide coverage for your own injuries or property damage.

What Does No Fault Insurance Cover in Michigan?

No fault insurance in Michigan covers a variety of expenses related to an accident. This includes:

• Medical expenses, including hospital visits, doctor’s appointments, and rehabilitation
• Wage loss benefits, which are designed to replace a portion of your lost wages if you are unable to work due to your injuries
• Replacement services, which provide coverage for household chores, such as cleaning and cooking, that you may not be able to do as a result of your injuries
• Survivor’s loss benefits, which provide coverage for lost wages and other expenses if a family member is killed in an accident
• Property damage, which is covered under Property Protection Insurance (PPI)
• Liability for damages you may cause to others or their property, which is covered by Residual Liability Insurance

What Doesn’t No Fault Insurance Cover in Michigan?

While no fault insurance in Michigan covers a wide variety of expenses related to an accident, there are some things that it does not cover. This includes:

• Damage to your own vehicle, which is typically covered under collision or comprehensive insurance
• Towing and rental car expenses, which are typically not covered under no fault insurance
• Pain and suffering damages, which are not covered under no fault insurance in Michigan

FAQ About No Fault Insurance in Michigan

Q: Is no fault insurance mandatory in Michigan?

A: Yes, no fault insurance is mandatory in Michigan. All drivers are required to have no fault insurance coverage in order to legally drive on Michigan roads.

Q: What does no fault insurance cover in Michigan?

A: No fault insurance in Michigan covers a variety of expenses related to an accident, including medical expenses, wage loss benefits, replacement services, survivor’s loss benefits, property damage, and liability for damages you may cause to others or their property.

Q: What doesn’t no fault insurance cover in Michigan?

A: No fault insurance in Michigan does not cover damage to your own vehicle, towing and rental car expenses, or pain and suffering damages.

Q: Can I sue for pain and suffering damages in Michigan?

A: Yes, you can sue for pain and suffering damages in Michigan, but only if your injuries meet certain criteria. This includes injuries that result in death, permanent serious disfigurement, or serious impairment of a body function.

Q: How much PIP coverage do I need in Michigan?

A: The minimum PIP coverage limit in Michigan is $250,000, but you can choose to purchase additional coverage if you wish.

Q: Do I need Residual Liability Insurance in Michigan?

A: Yes, Residual Liability Insurance is required in Michigan. It provides coverage for damages that you may cause to other people’s property or for personal injuries that you may cause to others.

Conclusion

No fault insurance in Michigan is an important type of automobile insurance that provides coverage for medical expenses, wage loss benefits, and other related expenses in the event of an accident. It is mandatory in the state of Michigan, and all drivers must have no fault insurance coverage in order to legally drive on Michigan roads. By understanding the components of no fault insurance and what it covers, you can ensure that you have adequate coverage in the event of an accident.