- March 23, 2024
- Car Accidents
- Personal Injury
In July 2020, all Michigan drivers became affected by a new auto insurance reform law, which brought about several changes. Drivers are no longer required to have unlimited medical coverage due to the countless options available for those seeking auto insurance coverage.As a result, many wonder who pays for an injured person’s No-Fault benefits under the new auto insurance law. This blog covers this and more, and if you or a loved one suffered injuries from a vehicle crash, our car accident attorneys at Goodman Acker, P.C. can help you seek compensation. Call us at 248-286-8100 for a free case review.
Why contact our car accident attorneys?
At Goodman Acker, P.C., our legal team has decades of experience helping accident victims. We will assist you in understanding your rights and how Michigan insurance laws affect them. We will explain who pays for your injuries after an accident and when you can file a third-party lawsuit. Our attorneys are skilled and knowledgeable and will guide you on the steps to take for the best outcome for your case. So, waste no time contacting us to learn more about our services.
Our car accident attorneys will help you maximize compensation and receive the benefits you are entitled to under the law.
Who pays No-Fault insurance benefits after an accident in Michigan?
Under the old No-Fault law, occupants in a vehicle involved in a car accident could claim No-Fault benefits from a specific vehicle’s insurance 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 for paying for benefits:
- Other occupants without insurance – Michigan Assigned Claims Plan (MACP). The plan assigns you to a participating Michigan No-Fault insurance company.
- Employees injured in employer-owned vehicles – Insurer of furnished vehicle.
- Those injured in ambulances or limos – Insurer of a 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.
Applying for benefits under the “order of priority” rules
Under the new No-Fault insurance law, the “order of priority” rules determine who an injured person should file a claim with first after an accident. The general rule is as follows:
- Anyone injured as an occupant of a motor vehicle will first make a claim with the auto insurance company on whose policy they are listed as a “named insured.”
- If the person is not a “named insured,” they may claim no-fault benefits from the insurance company of their spouse or relative with whom they live.
- If the injured person lacks a No-Fault insurance policy and their spouse or relative does not have one, they can apply for benefits under the Michigan Assigned Claims Plan.
In summary, you first apply for No-Fault benefits with your insurer. If you don’t have one, you use your spouse or relative’s insurance company, but you must live in the same house. Finally, if the preceding options are not available to you, you resort to the MACP under the administration of the Michigan Automobile Insurance Placement Facility.
What is No-Fault insurance & what does it cover?
No-Fault insurance refers to car insurance coverage that helps pay for your 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 or personal injury protection insurance.
The state regulates No-Fault insurance – some states require it, some make it optional, and some don’t make it available at all. No-fault insurance is mandated by law in Michigan, meaning it is illegal to operate a vehicle without insurance. While no-fault insurance is primarily used to cover medical and hospital bills after a car accident, it can also pay for expenses 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.
Goodman Acker, P.C. has recovered millions for clients
If you want to secure financial compensation after a car accident with injuries, turn to Goodman Acker P.C. We have achieved numerous million-dollar verdicts and settlements, and our personal injury attorneys can be trusted to help you secure fair compensation after being injured by negligent drivers.
Throughout our long history of serving injured clients in Michigan, we’ve been able to recover medical bills, pain and suffering, property damage, lost wages, future earning capacity, and other losses. Allow us to guide you to a better future free of debt and pain. Call our car accident lawyers at Goodman Acker P.C. today at 248-286-8100 to schedule a free case review and speak with one of our attorneys.