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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.

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