Understanding Michigan No-Fault: What Bills Are Covered?

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A serious automobile accident can bring with it a host of unexpected expenses. Michigan’s No-Fault automobile insurance is designed to make it easier for injured people to get the money they need. But as the first Understanding Michigan No-Fault post explained, the law can be confusing. This second in the series will help you understand what may be covered if you are in a serious injury accident.

As was explained in the last post, No-Fault claims are divided into two types: “First-party” claims against your insurance provider; and “Third-party” claims against the other driver (and his or her insurance). Each type of claim allows you to recover for different expenses.

First-Party Claims

No-Fault insurance pays for a person’s accident-related expenses up to the policy limits of that person’s coverage. These are your “PIP benefits.” Even when the person caused the accident, the First-Party claim covers:

  • Medical Expenses
  • Rehabilitative Expenses Like Physical And Occupational Therapy, Prosthetics, And Mobility Improvements To Your Home Or Vehicle
  • Wage Loss (85% Of Gross Wages For Up To Three Years)
  • Replacement Services (Help With Household Chores) ($20 Per Day Max, Up To Three Years)

Third-Party Claims

If you were less than 50% responsible for the accident (that is, if the other person is at fault), and you have suffered an injury that has impacted your ability to lead your ordinary life, or suffered serious permanent disfigurement, or death, then you may also be able to get money from the other driver and his or her insurance. That lawsuit can cover:

  • Actual Wage Loss Beyond Those Covered By Your PIP Benefits
  • Wrongful Death, Pain, Suffering, And Disfigurement
  • Up To $1,000 Toward The Deductible For Damage To Your Vehicle

You may also be entitled to collect damages under a Third-Party claim if an accident does damage to your home or personal property, such as when a vehicle drives onto the lawn of a home or strikes a retaining wall. These damages are collected from the at-fault driver or his or her insurance.

It can be difficult to anticipate just what expenses you will have following a serious injury accident. That is why it is important to contact an expert on No-Fault litigation as early as possible. At Christensen Law, we have 25 years’ experience working with the victim of automobile, trucking, and motorcycle accidents. We can get you the help you need to anticipate and pay for your medical and lifestyle needs. If you or someone you know has been hurt in a serious crash, have them contact Christensen Law to speak to an expert no-fault attorney.