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Who Pays an Injured Person’s No-Fault Benefits Under Michigan’s New Auto Insurance Law?


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Starting in July, all Michigan drivers will be affected by a new auto insurance reform law, which will bring about a number of new changes. Because drivers will no longer be required to have unlimited medical coverage, there are countless options available for those seeking to purchase auto insurance coverage.

As a result, some may be wondering who is responsible for paying an injured person’s no-fault benefits under the new law. Under the old law, occupants in a vehicle involved in a car accident could claim no-fault benefits from the insurance that specific vehicle had if they had no insurance of their own.

Now, while occupants including the named insured, spouses, and relatives can still claim benefits from your insurance, provisions are different for other vehicle occupants depending on the car they were injured in.

Under Michigan’s new law, the following are responsible to pay for benefits:

  • Other occupants without insurance – Michigan Assigned Claims Plan

  • Employees injured in employer-owned vehicles – Insurer of furnished vehicle

  • Those injured in ambulances or limos – Insurer of common carrier

  • Those injured in school buses, city buses, taxis, or Uber/Lyft vehicles – Insurer of self, spouse, resident relative, or insurer of bus, taxi, or Uber/Lyft vehicle

  • Injured motorcyclists – Owner of striking vehicle’s auto insurance carrier

What is No-Fault Insurance & What Does it Cover?

No-fault insurance refers to car insurance coverage that helps pay for you and your passengers’ medical bills if you’ve been injured in an accident, no matter who caused it. It’s also frequently referred to as PIP insurance, or personal injury protection insurance. No-fault insurance is regulated by the state – some states require it, some make it optional, and some don’t make it available at all. In Michigan, no-fault insurance is required by law, meaning it is illegal to operate a vehicle without no-fault insurance.

While no-fault insurance is primarily used to cover medical and hospital bills after a car accident, it can also pay for expenses that are related to personal injuries.

No-fault insurance can cover:

  • Funeral expenses

  • Expenses that exceed your health insurance coverage limits

  • Essential services you can’t perform because of your injuries, like cleaning

  • Lost income as a result of your injuries

  • Your health insurance deductible

Millions Recovered for Injured Clients

Those who aim to secure financial compensation after a car accident has left them with injuries can turn to Goodman Acker P.C. Having achieved numerous million-dollar verdicts and settlements, our personal injury attorneys can be trusted to go after the amount of compensation you deserve after being injured by negligent drivers.

Throughout our long history of serving injured clients in Michigan, we’ve been able to recover the following damages:

  • Medical bills, including X-rays, surgeries, medications, hospital stays, and more

  • Disability

  • Pain and suffering

  • Property damage

  • Lost wages or future earning capacity

Allow us to guide you to a better future free of debt and pain. Your first step towards a complete recovery begins when you contact our caring legal team. If you’re unable to come to us due to injuries, we can come to you at your home or in the hospital.

Call our car accident lawyers at Goodman Acker P.C. after you’ve been injured in an accident at (248) 286-8100, or contact us online. With a thorough understanding of Michigan insurance law, we know how to secure the coverage you need.