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No-Fault Insurance

Michigan No-Fault Insurance Series, Part I: The Basics of Michigan No-Fault

By Lipton Law on August 30, 2011 - No comments

In an effort to help Michiganders understand no-fault benefits, we will be posting a 5-part blog series in which we will be providing valuable information concerning no-fault insurance basics, benefits, denials, and limits. Today’s blog discusses the basics of no-fault insurance claims in Michigan.

Michigan law requires motor vehicle drivers to carry no-fault auto insurance. This insurance helps pay for the costs of an accident, such as medical bills and lost wages, that result from any injuries suffered in the accident. The required no-fault coverage, however, does not cover vehicle damage. Drivers who want or need additional coverage to repair or replace a damaged vehicle need to purchase comprehensive and/or collision coverage in addition to the required no-fault insurance.

Insurance companies in Michigan offer several alternatives for drivers to choose from when purchasing coverage above the no-fault requirement. For instance, drivers may purchase damage insurance to cover repairs and replacements after a crash, known as “collision” coverage, or damage caused by deer, weather, tree limbs, or other events, known as “comprehensive” coverage. Drivers can also purchase limited property damage liability insurance to cover them in the case a “mini-tort” suit for damage, and uninsured motorist insurance to cover costs in case the other driver in a crash has decided to risk driving without insurance.

Michigan no-fault insurance covers certain basics, but not others. If you need help dealing with a no-fault auto insurance claim, the experienced no-fault insurance claims attorneys in Southfield at Lipton Law can help. For a free consultation, call us today at 248-557-1688.


What Must a Michigan No-Fault Insurance Policy Cover?

By Lipton Law on July 18, 2011 - No comments

Michigan’s no-fault insurance laws require all drivers to carry a basic minimum of auto insurance. The insurance pays for medical bills and other costs if a driver or passenger is injured in an auto accident, no matter whether or not the accident was that person’s fault.

Since no-fault insurance is meant to cover most types of car accident injuries, Michigan drivers injured in auto accidents are generally not allowed to sue a driver who caused the accident, unless the driver or passenger suffered catastrophic injuries or was killed.

A basic Michigan no-fault insurance policy has three parts:

  • Personal injury protection. This is commonly known as PIP, 1st Party or No Fault benefits and covers certain benefits if someone is injured in a motor vehicle accident – regardless of fault. If an individual is injured in an accident where a motor vehicle is involved, the No Fault insurance company shall pay for lifetime medical benefits for accident related injuries; reimbursement up to $20 per day for three years for help with household chores (called replacement services); payment of lost wages at a rate of 85% of what the injured “would have earned” during the first three years from the accident; payment for medical related transportation; and payment to family members or friends to take care of the injured victims personal needs, commonly called “family provided attendant care.”
  • Property protection. This coverage pays for damage to other people’s property that occurs in an accident. For instance, if a driver crashes into someone’s fence, property protection pays for fence repair. It does not cover damage to the car, however.
  • Residual liability insurance. This coverage protects against damages in lawsuits. It pays if a driver kills, seriously injures, or permanently disfigures another driver, or if the driver causes an accident in another state.

No-fault insurance policies are supposed to provide prompt and accurate payments after a Michigan car accident. However, if an insurance company stalls or refuses to pay full benefits, an experienced Michigan no-fault insurance benefits lawyer like those at Lipton Law can help. For a free and confidential consultation, call Lipton Law today at 248-557-1688.


Michigan’s Motorcycle Helmet Law Saves Lives and Money

By Lipton Law on July 13, 2011 - No comments

Michigan is one of several U.S. states that require motorcycle riders to wear helmets when riding their bike. The National Highway Traffic Safety Association (NHTSA), estimates that motorcycle helmets make the difference between life and death for 37 percent of motorcycle accident victims each year.

Despite helmets’ life-saving abilities, however, opponents of Michigan’s motorcycle helmet law seek to get it repealed nearly every year. What opponents rarely mention is that Michigan’s helmet law does more than save lives. It also saves every vehicle owner in Michigan money on their insurance bill each year.

Michigan’s no-fault car insurance law is one of the most comprehensive in the United States. If a car crash occurs, the drivers’ insurance covers the costs of any injuries suffered in the accident, no matter who is hurt. Insurance must offer lifetime benefits for certain lifelong injuries or permanent disabilities. All car owners are required to carry this insurance, but motorcyclists are not. When a car and a motorcycle crash in Michigan, the car owner’s insurance pays for everyone’s injuries, including the motorcyclists’ injuries. If bikers were allowed to ride without a helmet, the costs of serious injuries in motorcycle accidents would almost certainly increase – and so would insurance premiums.

Drivers or motorcyclists who suffer permanent impairments or disfigurement as well as family members of motorcyclists killed in an accident may be able to seek compensation from the person who caused the crash in order to cover bills that insurance does not cover. If you have been seriously injured in a motorcycle crash in Michigan, please don’t hesitate to call the experienced Southfield motorcycle accident lawyers at Lipton Law, P.C. We will help you seek the compensation you deserve from insurance companies or negligent drivers. Call us today at 248-557-1688 for a free consultation.