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no fault insurance components

The Three Parts of a Michigan No-Fault Policy

By Lipton Law on February 14, 2012 - No comments

Michigan no-fault auto insurance law is one of the most comprehensive laws in the nation. Although Michigan no-fault coverage is often assumed to cost drivers more up front, it also provides coverage in nearly all auto accidents, even if you are severely injured or lose a loved one.

A basic Michigan no-fault policy has three parts:

  • Personal Injury Protection. Known as “PIP” benefits, personal injury protection pays for your medical bills and related costs, as well as those of the passengers in your car if they are children or don’t have an auto insurance policy of their own. As of 2010, the maximum PIP benefit was $4,929 per month.
  • Property Damage. Property damage benefits pay for damage your car does to someone else’s property during a Michigan auto accident. For instance, if your car is hit by another driver and pushed into someone’s front yard, your property damage benefits pay to fix any damage to that person’s front yard. These benefits do not, however, pay for damage to your own vehicle.
  • Residual Liability. Residual liability has two parts: bodily injury and property damage. The bodily injury portion goes toward paying the medical expenses of others involved in a crash if they do not have a policy that offers PIP benefits; for instance, if they are from out of state. The property damage portion protects you if you are sued under Michigan’s “mini-tort” provision, which can add up to $500 for damages not covered by insurance.

At Lipton Law, our experienced Michigan no-fault auto insurance attorneys can help you with every step of the post-accident process, from filing your no-fault insurance claim to seeking compensation from any negligent parties in court. We’ll guide you through the complex no-fault process so you and your family can focus on recovery. For a free consultation, call us today at (248) 557-1688.