Frequently Asked Questions About No-Fault Insurance

What does "no-fault" refer to?

"No-fault" refers to the benefits provided by auto insurance coverage that every driver in Michigan is required to purchase. No-fault benefits are given to drivers involved in motor vehicle accidents regardless of whether they caused the crash or not.

What types of benefits are covered under no-fault insurance?

There are several different types of no-fault benefits given to auto accident victims. The most common types include: Attendant care service; case management service; medical bills; prescription costs; home modification or accommodation; household chores and replacement service; medical mileage and mileage expense benefits; special transportation and vehicle alteration; survivor's loss; and, wage and income loss benefits.

Who is covered under a no-fault insurance policy?

Every member of a family living under the same roof is covered under a no-fault policy. Personal injury protection (PIP) benefits under no-fault will also be provided even when a family member is a passenger in someone else's car or even if they are a pedestrian involved in a crash. In addition, your no-fault coverage will pay for certain expenses if someone who does not have a no-fault policy is hurt as a passenger of your car, pedestrian or motorcyclist.

Is vehicle damage included under no-fault insurance?

It depends. No-fault insurance can pay for up to $1 million in damages to other individuals' property that your vehicle is responsible for causing in Michigan, like fences or buildings. This also pays for damage your car does to other people's vehicles, but only if the vehicles were properly parked. All other vehicle damage is covered only if your car has collision and/or comprehensive coverage under specific Michigan auto insurance policies in addition to the mandatory no-fault coverage.

How long do I have to file a no-fault claim in Michigan?

Insurance companies do not have to provide coverage for any lost wages, medical bills, replacement services or other no-fault benefit expenses that are over one year old. Therefore, you only have one year from the date of the motor vehicle accident to file a no-fault claim with the appropriate insurance company. If you fail to file your no-fault claim within this timeframe, you will not be able to get no-fault benefits in Michigan.

Do insurance companies have a time limit for no-fault claims?

An insurance company is required to either make a payment, request for additional data from the individual filing the no-fault claim or deny the claim, within 30 days of having received the written notice of a no-fault claim. Since insurance companies are notorious for informing claimants that they didn't receive the application or that it was filled out incorrectly, it is so important for an accident victim to file their no-fault claim correctly and as soon as possible.

Can an insurance company provide some no-fault benefits and deny me others?

You are entitled to all no-fault benefits by law, but it's possible for an insurance company to provide you with some no-fault benefits and deny you others. However, it is definitely possible to challenge such actions and make sure that you receive all of your no-fault benefits.

How can I receive all of my no-fault benefits?

Aside from making sure you've filled out the correct paperwork and filed a claim with the right insurance company within the appropriate time limits, a no-fault benefits lawyer can prevent insurers from taking advantage of your situation. When an accident has had life-altering effects on you and your family — the loss of income, the rehabilitation and healing time, the overall increase in stress — an experienced lawyer can help make sure you receive all the no-fault benefits to which you're entitled .

For more information, contact the dedicated attorneys at Lipton Law for a free initial consultation. Send us an email online or call 248-557-1688 now.