Michigan has one of the most extensive, comprehensive and complex No-Fault Car Insurance systems in North America. Every owner of a car in Michigan must buy certain basic car insurance coverages just to get license plates. It is illegal to drive or even to let your car be driven without no-fault insurance coverage.
The purpose of no-fault car insurance is to ensure that every person injured in a car accident is entitled to recover basic medical expense coverage and certain lost wages. Basic no-fault coverage in Michigan does not cover damage to vehicles. As this article is intended to provide basic information to injured people it will not deal with car damage issues and coverage.
A basic Michigan No Fault insurance policy includes three main parts. First, it must provide personal injury protection. If you suffer personal injuries in a car accident in Michigan your own insurance policy is required to pay all of the resulting medical costs, regardless of who is to blame for the car accident. This protection also pays up to 85% or the income you would have earned, had you not suffered personal injuries, for up to three years. There is a limit on the monthly wage loss recovery under this coverage that is revised annually.
In 2007 the maximum was $4,713.00 per month. If you are killed in a car accident your family may be entitled to receive up to that amount, again, for a maximum of three years. In addition to the medical and wage expenses, a person who suffers personal injuries in a car accident can also be entitled to receive up to $20.00 per day for replacement services that the injured person cannot perform such as housekeeping, lawn and garden car and other such services.
The second main area of coverage under the basic Michigan no fault scheme protects you from being responsible for damaging other people's property up to $1,000,000.00. If you are at fault for the accident and the accident causes damage to another person's building, fencing, or properly parked car, for example, your insurance policy covers damage up to that amount.
The third area of this no fault scheme is intended to protect the insured person from being sued as a result of car accidents except in specified circumstances. Some of the exceptions that allow someone who has suffered personal injuries to sue an insured driver or car owner in Michigan include car accidents in which a person is killed, suffers a serious injury or suffers permanent disfigurement. There are also exceptions with the right to sue dealing with car accidents that happen in Michigan involving non-resident's that are occupants in cars not registered in Michigan; car accidents that occur in another state; and for up to $500.00 if there is not more than 50% fault for an accident that causes damages to another's car and which damages are not covered by insurance.
The minimum insurance limits in Michigan ensures a minimum coverage of $20,000.00 if someone is hurt or killed in an accident; up to $40,000.00 total for the accident if more than one person is hurt or killed; and up to $10,000.00 for property damage in another state. These limits are often referred to as the 20/40/10. It is important to understand that these are the minimum limits. Car owners may purchase, and some might recommend, the purchase higher limits.
The No Fault insurance policy in Michigan covers all family members living within the same house. Personal injury protection benefits will be paid even when a family member is a passenger in another person's car or if they are a pedestrian and suffer personal injuries when struck by a car. The no fault coverage in Michigan also covers your passengers or pedestrians that are injured in an accident involving your car if they do not have any no-fault coverage of their own.
This brief overview should make it clear that the Michigan No-Fault legislative scheme is extremely complex. If you or a family member has suffered personal injuries in a car accident in Michigan you should speak with a Michigan lawyer that specializes in car accident law suits. The Injury Alliance can help you find a qualified and experienced personal injury lawyer in Michigan. Such a lawyer will provide you with a free consultation either over the telephone or in person. If you do not use the service of the Injury Alliance we still strongly recommend that you contact a Michigan personal injury lawyer immediately. Many will also provide a basic consultation free of charge.
This article is not a comprehensive or complete summary of the Michigan car insurance legislative scheme. Michigan has one of the most comprehensive and complex no fault insurance schemes in North America. A complete summary of that scheme could confuse many lawyers. This article, therefore, is a very brief summary of some important points of the system that we believe might help someone that has been injured in an accident in Michigan with an overview. For every rule there are exceptions. Every individual has unique circumstances that can be applied differently to the legislative system. Such being the case this article is not meant as legal advice and should not be relied upon as such. While every effort has been made to ensure the accuracy of the contents as of the time of writing, changes can and do occur in the legal field every day. If you have been injured in an accident we strongly recommend that you speak with a Michigan lawyer that specializes in car accident personal injury.
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