Michigan is one of a number of no-fault states for auto insurance, opposed to the majority of U.S. states that are at-fault. The main difference between them is that in states like Michigan, it is compulsory to have no-fault personal injury accident insurance, also called PIP (personal injury protection) insurance, while in at-fault states there is no need to do so.
There are advantages and disadvantages of each system, which perhaps explains why not all states have adopted the same method. The main advantage of no-fault insurance is that you don’t have to prove that you were not at fault in an accident.
Even if you were to blame for an accident, you can still claim injury benefits from your own insurer. The main advantage of at-fault states is that if you can prove who was to blame, you stand to gain much more compensation, but the process is definitely longer and more complicated.
Michigan No Fault Auto Insurance Rules
Auto insurance rules in Michigan mean insuring yourself in case you hurt someone else in an auto accident and / or damage a vehicle, or other property. In addition you insure yourself against injury whatever the cause.
Most states enforce rules about auto insurance for those who register their vehicle in that state and Michigan is no different. The main components of Michigan no-fault auto insurance laws are as follows:
- Up to $1 million per accident if your vehicle hits another properly parked vehicle or building.
- a minimum of $20,000 per person seriously injured by you in an accident;
- a minimum of $40,000 per accident for all people involved;
- a minimum of $10,000 for damage to someone else’s vehicle.
The above are minimum provisions included in the no-fault insurance package. No-fault cover means that you are unlikely to be sued if you are to blame for an accident unless someone is seriously injured.
If that does happen, the minimum coverage included in the no-fault package may not be enough. You can take out a higher cover with your insurance provider.
PIP Insurance Provisions in Michigan
PIP insurance in Michigan pays for medical costs, much of any lost earnings for up to 3 years, and certain other benefits such as at home care if you cannot perform normal chores because of your injuries. As it is no-fault insurance, it doesn’t matter who caused an auto accident, you can still turn to your own insurance provider with whom you have the policy and obtain compensation.
The PIP benefits don’t just apply to the policyholder. It also apples to anyone who is a family member who lives in the same household, as well as anyone who was in the same car and got hurt or a pedestrian or motorcyclist who got hurt by the policyholder.
PIP insurance does not pay for damage to your vehicle in an auto accident. You will need to claim compensation from the other driver’s insurer if you know that he / she was to blame. You may also be able to make a claim if your injuries were permanent, or seriously disfiguring, or the at-fault driver was not registered in Michigan.
How a PI Attorney Can Help if Hit in Michigan
Theoretically, there are fewer reasons why you might need to use a personal injury attorney in Michigan as no-fault insurance is supposed to make it easier to obtain compensation, However, there are still situations in which an attorney’s advice and legal expertise can make a real difference, especially if you are able to step outside no-fault rules because of the seriousness of your injuries. Fill out the Free Case Evaluation today!
