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 fault.
What types of benefits are covered under no-fault insurance?
Several types of no-fault benefits are 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 he or she is a pedestrian involved in a crash.
Is vehicle damage included under no-fault insurance?
It depends. No-fault insurance can pay for up to $1 million in damages your vehicle causes to other individuals’ property, 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?
You 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 time frame, you will not be eligible to receive benefits.
Do insurance companies have a time limit for no-fault claims?
An insurance company is required to either make a payment, request additional data from the individual filing the no-fault claim or deny the claim within 30 days of having received written notice of a no-fault claim. Insurance companies are notorious for informing claimants that they didn’t receive the application or that it was filled out incorrectly. It is critical that accident victims file their no-fault claims 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, you can 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 protect your interests throughout the claims process.