Michigan No Fault Insurance Overview


Michigan’s No-Fault Car Insurance system is one of the most comprehensive, complex and extensive in North America. To get a Michigan license plate, every car owner must purchase basic car insurance. It is illegal to allow your car to be driven or to be driven by someone else without insurance.

No-fault insurance for car accidents is designed to provide basic medical coverage and lost wages to all those who are injured. Michigan’s basic no-fault coverage does not cover vehicle damage. This article will only provide information for injured persons and not address car damage coverage.

Three main components make up a basic Michigan No Fault Insurance policy. It must first provide protection for personal injuries. No matter who caused the accident, personal injury protection is mandatory for any Michigan car accident victim. The protection covers up to 85% of the income you would have made if you had not sustained personal injuries for up to three consecutive years. This coverage has a monthly limit for wage loss recovery. It is reviewed annually.

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The maximum monthly amount was $4713.00 in 2007. Your family could be eligible to receive the same amount if you are injured in a car accident, but for up to three years. A person who is injured in a car accident may be eligible for up to $20.00 per person to replace the services rendered unasable by the injured, such as lawn care, housekeeping, and other services.

You are not responsible for any damage to property owned by others. This is the second major coverage area under the Michigan basic no fault scheme. Your insurance policy will cover damage up to the amount of $1,000,000.00 if you are responsible for an accident that causes damage to another person’s property, fence, or properly parked vehicle.

This no fault scheme protects the insured from being sued for car accidents, except in certain circumstances. Car accidents that result in personal injuries and death of a person can be sued an insured driver or owner of a Michigan car. There are exceptions to the right to sue for car accidents in Michigan that involve non-residents. These include car accidents that occur in Michigan and that involve occupants of cars that are not registered in Michigan.

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Michigan’s minimum insurance limits ensure minimum coverage of $20,000.00 in the event that someone is injured or killed in an auto accident. If more than one person is involved, you can get up to $40,000.00 in total coverage. Property damage in other states is covered up to $10,000.00. These limits are commonly referred to as 20/40/10. These are the minimum limits. Some car owners might purchase and others may recommend higher limits.

Michigan’s No Fault Insurance policy covers all members of the family who live in the same house. Even if a family member is injured in an accident involving another vehicle, or if they are pedestrians who are struck by a vehicle, personal injury protection benefits will still be provided. Michigan’s no fault coverage covers pedestrians and passengers who are hurt in an accident involving your vehicle.

The Michigan No-Fault legislation scheme is complex. This should be obvious from this brief overview. A Michigan attorney who specializes in car accidents law suits is recommended to anyone who has been injured in a Michigan car accident. The Injury Alliance can help find you a Michigan personal injury lawyer. You can have a consultation over the phone or in person with such a lawyer. Even if you don’t use the Injury Alliance service, we strongly recommend you call a Michigan personal injury attorney immediately. Many offer a free consultation.

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This article does not contain a complete or comprehensive summary of Michigan’s car insurance legislation. Michigan’s no-fault insurance scheme is one of the most complex and comprehensive in North America. Many lawyers may be confused by a detailed summary of the scheme. We believe this article will help anyone who has been in an accident in Michigan. There are exceptions to every rule. Each person has different circumstances which can be applied to the legislative system in a different way. This article is not intended to be considered legal advice. Although every effort was made to ensure accuracy at the time of writing the contents are subject to change every day in the legal world. We strongly recommend speaking with a Michigan attorney who specializes in personal injury from car accidents if you have been hurt in an accident.