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
Before you reach out to your insurance company to file a no-fault insurance claim, discuss the details of your case with your attorney. Your own insurance company may attempt to reduce its financial obligation wherever possible.
For this reason, you must have your lawyer handle the no-fault insurance claims process on your behalf, which might include the following:
- Your attorney contacts the insurance company to file the claim
- Your attorney provides the insurance company with a fax needed to process the claim
- The insurance company investigates the claim
- The insurance company attempts to negotiate a settlement
- Your attorney negotiates with the insurance company to obtain a fair and reasonable settlement offer
- If the insurance company attempts to escape financial liability, your attorney prepares to bring your case to court
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.