You may be surprised to learn that the state of Michigan has recently enacted a no-fault insurance law. This means that as of July 1, 2020, every driver and their insurance policy will be impacted, in addition to individuals hurt in car accidents, including bicyclists, motorcyclists, pedestrians, and more.
Since these changes affect insurance policies, it’s important to be aware of how these changes will affect you if you or your loved one has been injured in a car accident. Keep reading to learn more about the implications of Michigan’s new no-fault law.
Michigan No-Fault Insurance
Every car owner must purchase certain basic coverages in order to obtain license plates. It is unlawful to drive or allow your car to be driven without no-fault insurance coverage.
If you’re involved in an accident, regardless of who caused the wreck, no-fault insurance will pay for the following:
- Your medical expenses
- Your wage loss benefits
- Your replacement services
- The damage you do to other people’s property
IMPORTANT: If you purchase a basic no-fault insurance policy, it will NOT pay for any repairs to your vehicle.
The basic no-fault insurance policy that you’re legally required to carry has the following three parts:
This part of the policy will pay for all reasonably necessary medical expenses in the event you are injured in a vehicular accident. There is no maximum limit for this portion of coverage.
This part of the policy will also pay up to 85% of the income you would’ve earned if you were not injured, for up to three years. The amount of compensation you’ll receive for lost income is limited and the limit is amended annually.
You’re also entitled to up to $20 per day in replacement services. This is intended to cover routine household services that injured people cannot provide for themselves or their families, such as housekeeping and yard work.
#2 - Property Protection (PPI)
This portion of the no-fault policy will pay up to $1 million for damage your car does in Michigan to other people’s property, like buildings and fences.
Additionally, it will pay for damage that your car does to another person’s appropriately parked vehicle. It doesn’t pay for any other damage to cars.
#3 - Residual Liability Insurance - Bodily Injury and Property Damage
Under the no-fault law, insured drivers are protected from lawsuits due to car accidents, except in particular situations. Generally speaking, you may only be sued:
- If you are to blame for an accident in Michigan and someone is killed, seriously injured, or permanently disfigured;
- If you’re in an accident in Michigan with a non-resident who is an inhabitant of a vehicle not registered in Michigan;
- If you’re in an accident in another state;
- For up to $1,000 if you are 50% or more at fault in a crash that causes damages to another person’s car and the damages are not covered by insurance.
Required Minimum Coverage
If you are found legally responsible for an accident, your required minimum coverage no-fault insurance policy will pay up to certain amounts. While you may buy additional coverage with higher limits, the minimum coverage offers the following:
- Up to $20,000 for someone who’s injured or killed in an accident.
- Up to $40,000 for each accident if multiple people are injured or killed.
- Up to $10,000 for property damage in another state.
We’re Here to Help
If you’ve been injured in a car accident, you may be entitled to compensation. Our attorneys here at Goodman Acker P.C. are highly skilled in the area of car accident personal injury law and have helped many other people just like you obtain justice. Let us see if we can help you, too. Don’t delay—contact our office with your case right away.
Call Goodman Acker P.C. today at (248) 286-8100 to discuss the details of your case.