Simplified Guide to Michigan’s No-Fault Car Insurance Laws
No-fault car insurance laws have been a longstanding and often contentious aspect of Michigan’s automotive insurance landscape. However, the laws were created to streamline the claims process and provide prompt payment of benefits to you if you get involved in car accidents regardless of who is at fault.
As an experienced attorney, I can tell you that navigating this system can be challenging especially if you are unfamiliar with the ins and outs of the law and insurance claims.
In this article, I discuss the details of Michigan’s no-fault car insurance system with the guidance of a seasoned Detroit car accident lawyer. I aim to shed light on your rights and responsibilities as a Detroit driver, the claims process, and the potential pitfalls you may encounter. Let’s get right into it!
Contents
What is the No-Fault Car Insurance System in Michigan?
The No-fault car insurance system in Michigan is a decades-old law that was crafted to ensure you get paid medical expenses and if you lost wages after an accident without considering who was at fault. The No-fault system includes the following components:
The PPI- Property Protection Insurance
The PPI (Property Protection Insurance) under Michigan’s no-fault insurance laws allows you or other affected parties to be compensated in cases where a car accident damages other properties (like fences and houses), or parked cars. The car causing the accident’s insurance will foot the bill under this law.
The RLI- Residual Liability Insurance
Under RLI (Residual Liability Insurance) you as the policyholder get protection from any lawsuit that arises from an accident you caused or were at fault for. It covers any injuries caused to other people or property. The insurance company will foot the whole bill for you!
The PIP-Personal Injury Protection
The PIP or PIP-Personal Injury Protection is the most important law in Michigan’s no-fault system if you ask me. Under this law, you, your family member and other vehicle occupants during the accident get unlimited lifetime medical benefits and wage loss compensation in case you are involved in an accident and the vehicle is insured. The law does not care who caused the accident!
I would, however, want to mention here that this law has undergone quite a bit of reform over the years since it was created over four decades ago. In 2019, Michigan state legislators added fee schedules for our medical providers, introduced some flexibility for you to various levels of PIP coverage, and capped the attendant care benefits.
From the onset, these unique care accident insurance laws were created to make the claims process simpler for you and ensure you and other affected parties get compensation and benefits quickly. You will find this particular set of laws quite helpful especially if you are dealing with a rogue insurer whose aim is to minimize the payout in every way possible.
These are your Rights and Responsibilities Under No-Fault
Even as we have some of the friendliest and clear-cut laws on car accident compensation in Michigan, you still need to be aware of your rights and responsibilities so you get what you deserve. The first responsibility you gave is to maintain Michigan/s mandatory minimum insurance coverage. To be more clear, you must have PPI, PIP and RSL insurance coverage at the time you get an accident otherwise you may be liable for penalties and other punitive actions like getting your driver’s license cancelled.
Secondly, please make sure you make a report to the police and register your claim with your insurer as soon as you are involved in an accident. From my experience as a Detroit car accident attorney, I can tell that most insurers use sophisticated tactics to minimize payouts.
At the same time, you also really need to know how to navigate the claims process. This means providing accurate information that supports your claim for compensation with the insurer.
Last but not least, please know that you have the express right to access medical treatment from any medical facility you prefer. This means your insurer has no right whatsoever to dictate where you go for treatment. The most important thing you must do is follow the correct procedure and submit the correct documents for reimbursement.
To conclude, let me mention here that having an experienced attorney to help you deal with insurers after an accident is important. As Detroit car accident attorneys, we know all the small details and tricks insurance companies use to undercompensate you!
