- February 1, 2023
- No Fault
- Personal Injury
Driving on any road, street, or highway can be deadly. Michigan is experiencing an increase in traffic fatalities from 2018 to 2022 of 15%. The total number of auto accidents has risen 4% last year.These increases lead to a rise in drivers' auto insurance premiums. Part of the problem is Michigan's no-fault laws that require protection regardless of who caused the accident.
Recent reforms are changing how these premiums are calculated with increased fees for the Michigan Catastrophic Claims Association (MCCA). Since 1978, this non-profit has helped to cover medical claims and property damage from auto accidents.
In 2020, you are no longer required to participate in the MCCA, but you will lack coverage in the event of an accident. In the last year, the fees for this coverage increased from $48.00 to $122.00 per year. You have different tiers ranging from a benefits-level plan to unlimited protection for higher premiums.
These costs have increased what Michigan drivers are paying for auto insurance, and it is leading to reforms in no-fault laws. Many drivers need clarification about what this means and how it could impact them. Our comprehensive guide helps you to understand Michigan's no-fault laws and how they affect you.
How Does No-Fault Car Insurance Work in Michigan?
Michigan drivers in a car crash must go to the insurance company to file no-fault benefits, including lost wages, medical bills, and other expenses. To receive these benefits, you must submit a claim for benefits within one year of the crash.
The state sets standards for deciding which insurance company is responsible. Knowing the rules and the correct insurance company to submit your claim is critical, or you could give up your rights by missing the deadline.
If you are in a crash, you will have two claims that must be filed, including:
- Filing a no-fault claim with your insurance company
- Filing a negligence claim against the at-fault driver with the other driver's insurance company
You could recover medical bills, lost wages, and other benefits. We recommend speaking with a skilled auto accident attorney about your claim. Michigan's no-fault law is tricky; you need a skilled professional to guide you. We understand how to file a claim that gets results and looks out for your interests.
What You Need to Know about Michigan's No-Fault Law
Michigan's no-fault laws were implemented in the 1970s in response to tort-based systems. These involve drivers recovering damages from the driver who is at fault after the accident. Sometimes, the payout of these claims slows the compensation to the victims through prolonged legal battles. Michigan's no-fault laws were designed to compensate accident victims regardless of fault.
Critical Components of the No-Fault Law
Michigan's no-fault laws have different components to offer added protection to drivers, including.
Personal Injury Protection (PIP)
PIP covers medical expenses, lost wages, and rehabilitation costs for everyone in the accident, regardless of fault.
Property Protection (PPI)
Insurance companies offer up to $1 million in property damages from Michigan-registered vehicles inside our state.
Residual Liability Insurance
Drivers are required to carry specific levels of liability for property damage and bodily injury to others. It ensures that all drivers can receive compensation and assistance regardless of fault.
These components offer numerous benefits for drivers and those involved in accidents, including immediate assistance, guaranteed compensation, coverage for passengers/pedestrians, and decreased litigation.
We recommend speaking with a skilled attorney about Michigan's no-fault laws. These regulations are changing, and the new standards could affect you.
The attorneys at Goodman Acker PC have over 150 years of combined experience handling auto accident cases. Our team of professionals is honest and will give you a complete assessment of your options.
Contact us at 248-286-8100 to schedule your complimentary consultation to learn about what you can do and how we can help you to navigate these situations.
How Does Michigan's No-Fault Law Affect My Claim?
Michigan has some of the highest auto insurance premiums in the country. Despite efforts to reduce the impacts on drivers, rates have slowed the increase, but more is needed to make a significant impact. These issues will have a direct impact on your claim, including.
Restrictions on Taking Legal Action
Michigan's no-fault law makes it difficult to sue for pain, suffering, and emotional distress. The MCCA offers protection against any further legal action on your part.
You could receive a lower settlement that does not cover your future medical expenses and lost wages. The MCCA only offers protections to those willing to pay higher insurance premiums.
Pre-Set Criteria
Michigan's no-fault law sets various thresholds for compensation for injuries and medical expenses. You will be in different categories depending on the extent and severity of your injuries. The pre-set criteria could reduce your awards using a predetermined formula set by the state.
Guaranteed Benefits
Regardless if you are in an accident with an uninsured driver, you will always have benefits. One of the challenges in other states is some drivers on the road do not have insurance. You can take legal action against them civilly to get compensation for your injuries and the property damage. The odds of prevailing in these cases and collecting damages are slim. These cases could take years to resolve, while you are forced to cover the costs yourself.
Michigan's no-fault law ensures that you will receive compensation in these situations. You have guaranteed benefits and receive faster compensation.
Higher Premiums
You will pay higher premiums for auto insurance to get the additional coverage from Michigan's no-fault laws. These costs reflect the guaranteed PIP protection you receive, making you pay more for auto insurance.
Lower Payouts
You could receive lower payouts for your claim compared with other states. Michigan sets specific limits of protection that could reduce your payouts. You get paid faster, but the money might only cover part of your injuries and property damage.
Fraudulent Claims
One of the criticisms of Michigan's no-fault laws is they encourage fraud. Drivers do not have to show fault, and the standards for making a claim are much lower than those states without these laws. These fraudulent claims increase the premiums Michigan drivers are paying for coverage.
Regulatory Changes
The state is changing the current system, leading to a decrease in premiums on a year-over-year basis. The new changes offer medical treatment schedules and a tiered PIP coverage plan.
We recommend working with a skilled auto accident attorney to handle your claim. Michigan's no-fault laws are complex, and you need a knowledgeable professional to guide you. The state legislature is making changes, and we are current on how these apply to you. Your attorney will review your situation and discuss the different options we could pursue.
Recent Reforms to Ease the Burdens on Michigan's Drivers
The last several years have seen reforms designed to reduce the financial burden on drivers and improve accountability. The most notable reforms include:
Choice of PIP Coverage
Michigan drivers have the option of choosing different PIP coverage levels. It enables them to create custom plans that fit their budgets and needs.
Fee Schedule Implementation
Fee schedules for medical services are designed to control costs and reduce fraud. You have different tiers of coverage that give you higher levels of protection, and it lets you control the premium.
For example, your premiums will increase by $122.00 per vehicle if you want unlimited coverage. These amounts of protection start at $48.00 with coverage of $50,000. You can get a state subsidy through Medicaid to reduce these costs.
These changes offer more relief and flexibility when shopping for auto insurance.
Premium Reductions
The reforms are designed to tackle Michigan drivers' high premium costs. Michigan has consistently led the nation with some of the highest premiums, and these changes focus on bringing down rates. Even though premiums are still high, recent trends show that insurance premiums are stagnating.
Michigan's reforms are starting to make a difference, but getting the maximum payouts requires working with a knowledgeable auto accident attorney. Our team understands Michigan's no-fault law, and we use our knowledge to ensure you get the highest payout for your claim. We consider all the avenues to strengthen your case so you have the maximum protection.
How Do You File a Michigan No-Fault Insurance Claim?
Filing a no-fault claim requires following different steps to get results, including.
Identifying the Responsible Insurance Company
Locating the responsible insurance company depends on many factors, such as if the driver or passengers are involved in the accident. You also want to consider other variables, including pedestrians, motorcyclists, and bicyclists. Your claim must be filed with the proper insurance company to start the process.
File the Application
You must file the no-fault application with the right insurance in the period allowed under the law. The lack of knowledge in these areas will slow the process and could lead to this window closing.
Provide Evidence
You must submit proof of your accident, including lost wages, medical costs, treatments, and doctor reports. All of this shows the extent of your injuries and helps us decide the proper amount of compensation under the law. We will review your tax and payroll stubs with the other information before submitting them to the adjuster showing the proof of your loss.
We recommend working with a skilled Michigan auto accident attorney to assist you. The no-fault laws are complex, and identifying the right parties and when to submit the paperwork is challenging. Our team of skilled attorneys has over 150 years of experience with these cases, and we have a proven track record that speaks for itself.
Independent Medical Examinations
Sometimes an independent medical examination is necessary. The law requires you to attend, and not showing up could void your rights to any benefits. Insurance companies could send you to a doctor that is on their payroll. The carriers could be trying to get the doctors to recommend terminating your benefits without you knowing what is happening until it is too late.
The most common way is for the insurance company's doctor to suggest that your injuries are unrelated to the accident. Some doctors have gone so far as to claim that you have fully recovered and are ready to return to work when you are not.
Our skilled attorneys will stand up and fight for you against these unfair tactics. We will review your situation and advise you on the different options we could pursue. Your attorney is fearless in standing up to the insurance companies by demanding they stop their unfair practices. We will only stop once we get you the maximum settlement after leaving no stone unturned.
What are Your Rights if Your No-Fault Benefits are Denied?
Insurance companies are known for terminating claims, refusing to pay, or cutting off your benefits. For instance, an insurance company's adjuster could ignore your request and continually ask you for more information to delay paying you. These tactics are designed to wear you down and close the window for taking any legal action.
Adjusters could refuse to pay your claim by stating that you are not entitled to them. Situations like this are when the only option is to file a lawsuit against the carrier. You could sue for compensation of unpaid benefits, interest, and legal fees.
These lawsuits must be filed within a year of the denial. The process is complex, and you need a skilled attorney to guide you. Our team has 150 years of experience handling these cases and a proven track record that speaks for itself.
What is a Mini-Tort Claim?
You can use a mini-tort claim against the at-fault driver for damages. You can sue for $3,000 or the deductible amount (whichever is less).
Your attorney will discuss this option and creates a custom legal strategy for your situation. We understand the challenges you are facing and are here to help. Our team will put their 150 years of collective experience to work for you to get results.
Who is Paying for Michigan's No-Fault Benefits?
Car insurance carriers such as Progressive and Allstate cover Michigan's no-fault benefits. The insurance company is obligated to pay you no-fault benefits. Those situations where you don't own a car will come off the insurance from a resident relative, including spouses, parents, and other adult family members. These situations could arise even if the relative is not involved in the accident.
Those cases where the person lives alone and in a household with no insurance can apply to the Michigan Assigned Claims Plan for relief. They will assign insurance companies such as Citizens Insurance or State Farm to pay your no-fault claim.
The one catch is if you own an uninsured vehicle involved in a crash makes you eligible to file for benefits. These situations apply even when you don't have insurance and did not cause the accident.
We recommend speaking with a skilled attorney about your situation. Navigating no-fault claims is challenging, and you need someone on your side with the knowledge and experience to guide you. Our team will stand up and fight for you when you are most vulnerable and need help.
What Should You do after an Accident?
The time after an accident is when you need to take specific steps that will protect your rights, including:
Check for Injuries
First, you want to ensure everyone is safe and no one is hurt. Call 911 immediately to help reduce your legal liabilities if you notice any injuries.
Contact Law Enforcement
Your call to 911 will lead to law enforcement coming to the accident scene and investigating. A police report documents what happened, which is critical for protecting your rights and filing claims.
Exchange Information
Next, you want to exchange information with the other parties involved in the accident, including proof of insurance, names, addresses, phone, and license plate numbers.
Document Everything
If you are safe, we recommend taking pictures of the scene, such as vehicle damage, injuries, and road conditions. These photos could provide critical evidence that will back up your claim.
Speak with a Skilled Auto Accident Attorney
We recommend speaking with a qualified auto accident attorney immediately. Our team of attorneys will review your case, discuss the different options, and guide you through this process. Michigan's no-fault laws are complex, and you must follow specific criteria to be successful. Our team knows what to do that gets results, and we have a proven track record that speaks for itself.
The time after an accident is confusing, and Michigan's no-fault laws could add to this uncertainty. A skilled lawyer will guide you and protect your rights to get you the maximum payouts. Michigan's laws differ from other states, and you need knowledgeable professionals with experience to guide you.
Why Choose Us?
Your attorney is critical in helping you navigate Michigan's no-fault system. Receiving fair compensation is a bureaucratic process; you need help understanding and navigating everything.
Our team offers numerous benefits that make handling your case easier, including:
Experience
Our attorneys have over 150 years of combined experience in handling these cases. We are well-versed in the state's no-fault laws and know how to get results.
Threshold Analysis
Deciding the correct threshold is challenging, considering the various tiers, property damage, and extent of injuries. Our team works with you every step of the way to ensure all the required documentation is submitted within critical deadlines. We work fast and with a sense of urgency to protect your rights.
Dispute Resolution
Our team handles disputes with the other drivers and insurance companies over the benefits and coverage. Your attorney negotiates to ensure fair and timely resolutions to your case. We understand your stress and are here to make things easier.
Personal Attention
Your case matters, and we will stand up and fight for you when you are most vulnerable. We understand how these cases cause stress with the insurance company's accusations and counter-accusations. We use the evidence we collect to show that the company has legal responsibility and will act aggressively to hold them responsible.
Independent Investigation
Our team of investigators will review and collect evidence that builds your case. We go to the accident scene, take pictures, review reports, and interview witnesses. Our job is to find out what happened so we can protect your interests and ensure your rights are respected.
Those who file a claim alone are at the mercy of insurance companies, their attorneys, and adjusters. You could get a smaller claim that will not address your medical costs and lost wages while waiving your rights. We ensure that any settlement reflects the true extent of your injuries and will only stop once we get you a figure that reflects these damages.
Litigation
In those situations where the insurance companies are balking, we could take more aggressive action by filing a lawsuit. Insurance companies must process your claim within a specific timeframe and take you seriously.
We prevent insurance companies from trying to lowball you or say that the injuries and damage are not from the accident. The most effective way to do this is to use litigation as leverage. We prefer to handle things outside of court but are prepared to go all the way to protect you. Your attorney will represent you throughout these proceedings and use their experience to hold the insurance company accountable.
Goodman Acker PC is the firm that can help you when you are in an auto accident. You have rights; we will stand up for them throughout the case. We understand the stress you are experiencing and are here to make things easier for you. Your attorney explains how the process works and guides you to ensure you get the maximum protection under the law. Our 150 years of combined experience matters, and it shows our track record for these cases.
Contact us at 248-286-8100 to schedule your consultation with a skilled auto accident attorney. Everything we discuss is confidential, and you will get the most current information to move forward with your case. Put our knowledge and experience to work for you in dealing with these situations.