WHAT DOES MICHIGAN NO-FAULT INSURANCE COVER?

Many policy holders are not aware of the valuable coverage Michigan auto no-fault provides when you or your family member is injured or killed in an auto accident.  Personal Injury Protection (PIP) benefits are paid to the accident victim by his/her own insurance company.  This coverage applies to crashes occurring throughout the United States and Canada.  It covers you and your family for "accidental bodily injury arising out of the ownership, operation, maintenance, or use of a motor vehicle as a motor vehicle."

 

These benefits include payment of claims for:

 

  • Allowable expenses for life – “All reasonable charges incurred for necessary products, services and accommodations for an injured person’s care, recovery or rehabilitation.”  These benefits are payable for life and have no dollar limits (they are broard and can include: medical expenses; in-home patient care; home accommodations; vocational rehabilitation; special transportation and medical mileage guardianship/conservatorship expenses; and services of an independent case manager).

  • Up to 3 years of lost wages, if the injured person is unable to return to work as a result of the crash, currently capped at approximately $5,400.

  • Domestic replacement services capped at $20/day, payable for up to 3 years, for services such as housekeeping or snow shoveling, which the injured person can no longer perform.

  • Survivor’s loss in cases of death, payable up to 3 years, to the insured’s dependents for the decedent insured’s economic contributions to those dependents.

As you can see from the description above, Michigan no-fault insurance provides comprehensive and lifetime medical expense coverage for auto injuries. Therefore, it is not surprising that no-fault is one of the more expensive types of auto insurance coverage sold in Michigan.  However, no-fault is certainly not the only cost-driver of insurance premiums.  In many cases, the cost to protect a person’s vehicle through collision coverage can be even greater than a person’s no-fault insurance coverage. Michiganders pay among the highest rates for collision coverage in the nation.  Think about it, in many circumstances it costs Michigan policy holders more to insure their vehicles than it does to cover the cost of their medical expenses resulting from injuries to they or their family members sustain in an automobile crash.  

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