Since Michigan is a no-fault insurance state, you will file a claim with your insurance company instead of the liable party’s insurance provider to compensate for your damages.
No-fault insurance claims can still be complex, even though you are working with your insurer. For this reason, it is essential to understand how no-fault insurance works and what to expect when you are involved in an accident and need to file a no-fault insurance claim.
What Is No-Fault Insurance?
When you purchase your own auto insurance coverage, you also need to carry no-fault insurance coverage. Here, when you are involved in an accident, your insurance company must cover the costs, no matter who is responsible for causing the accident.
For this reason, you must include multiple types of no-fault insurance coverage on your policy to protect yourself in an accident.
Types of Coverage
There are multiple types of no-fault insurance coverage, each covering a different kind of loss. They include the following:
PIP
Personal injury protection (PIP) covers all your medical expenses up to the highest amount of insurance coverage you purchased. Additionally, PIP covers up to three years of lost wages and attendant care.
Remember that the amount of coverage you purchase determines the compensation you receive in your claim. You have the option to purchase anywhere from $250,000 per accident to unlimited PIP coverage. You also can purchase PIP coverage without medical, though this may be ill-advised if you have to protect yourself financially in the event of an accident.
PPI
Property protection insurance (PPI) covers up to $1 million in property damage your vehicle causes to someone else’s property.
This includes accidentally crashing into someone else’s fence, driving into a building, or hitting a parked vehicle. However, PPI doesn’t typically cover any other type of damage to another person’s car.
Residual Liability Insurance
Residual liability insurance includes bodily injury liability coverage and property damage liability coverage. Here, your auto insurance covers various damages if you are found responsible for causing the accident. Such damages might include:
- Up to $10,000 for property damage that occurs in another state
- Up to $500,000 per accident in the event of a fatal injury or death
- Up to $250,000 per person for serious bodily injury or death
- Up to $3000 if you are found 50% or more liable for causing the accident if that driver did not have insurance coverage
Is No-Fault Insurance Required?
According to Michigan law, all motorists must purchase no-fault auto insurance coverage to protect themselves in the event of an accident. The compensation you receive through your no-fault insurance coverage depends on the amount of coverage you purchased in your policy.
Drivers who fail to purchase the mandatory minimum amounts of auto Insurance coverage face misdemeanor criminal charges punishable by a maximum of one year in county jail and up to $500 in fines. Drivers may also face a 30-day license suspension if convicted.
How to File a No-Fault Insurance Claim in Michigan
If you’ve been in a car accident, you must act to ensure you receive compensation. You’ll have one year to file for benefits, or you might miss your chance to recover compensation.
Contact a Detroit personal injury attorney to help prepare your claim so you don’t give the insurance company any reason to deny your claim.
Identify Your Insurer
You’ll need to determine which company is responsible for paying your no-fault benefits. Your situation may affect who’s responsible for paying, like if you were the driver or the passenger during your crash.
File Your Application for No-Fault Insurance Benefits
Once you know you to file with, complete and turn in your application. Make sure to do this within the deadline.
Provide Evidence of Your Needs
When you’re preparing your claim, you can discuss how to prove your damages with your attorney. You’re looking for proof that the crash caused your injuries and has affected your day-to-day living. Your insurer should pay for your medical expenses and lost wages covered by your insurance policy.
Filing a Claim for “Pain & Suffering”
You may have medical expenses not covered by your policy, or expenses related to your pain and suffering caused because of your injuries. If a negligent driver caused your accident, it’s possible to pursue a third-party liability claim.
You’ll be filing a claim against the other driver and their insurance company.
What is Pain and Suffering?
Pain and suffering refers to the mental anguish you experience because you were hurt in an injury accident. These non-economic damages are caused because of your injuries, they aren’t your injuries themselves. An experienced Detroit car accident lawyer can help you calculate your losses.
Michigan Insurance FAQs
What Evidence Should I Have for My PIP Claim?
Insurance companies require proof of your injuries, evidence that you were injured by a crash. You can use medical reports, witness statements, video, photos, and doctor’s testimony to prove that your injuries have affected your quality of life.
Will My Insurance Work Outside of Michigan?
Yes. Your no-fault insurance coverage will follow you no matter which state you’re in, or even if you’re in another vehicle.
Will My Rates be Affected After a Crash?
Your rates might go up on your no-fault insurance if you caused the accident. Premiums are based on risk assessments, and if you caused one crash, your insurer might believe you’ll cause another.
What If I Don’t Have Insurance?
Drivers who fail to purchase the mandatory minimum amounts of auto Insurance coverage face misdemeanor criminal charges punishable by a maximum of one year in county jail and up to $500 in fines. Drivers may also face a 30-day license suspension if convicted.
Contact a Michigan Car Accident Lawyer for Help Today
When you need to file a no-fault insurance claim, you should have an experienced Michigan car accident attorney handling your case. This way, you can be sure you are not being taken advantage of in your greatest time of need.
Schedule your no-cost, risk-free consultation with our team at Davis Injury Lawyers, PLLC today. You can get started on your case by completing our convenient contact form or calling our office at (313) 462-7979.