Common Michigan Auto Claims
In Michigan, all licensed drivers in Michigan must carry a comprehensive no-fault insurance policy. Your auto policy is more than a legal requirement, though. It ensures that you, your family, and other drivers get the financial and medical support necessary following a car accident.
At Encore Insurance Group, we know how complex the car insurance claims process can be, so we created this in-depth guide to explain claims, coverage, and more. For more information or to request a consultation with one of our auto insurance claims specialists, please call 248-466-0200.
Auto Insurance Claims in Michigan
Every Michigan driver can file for no-fault insurance benefits following an accident. However, if you’ve sustained property damage or haven’t received appropriate benefits from your insurance company, you may qualify for the following claims:
1. Mini Tort Claims
Based on Michigan’s mini tort policy, drivers whose vehicles sustain damage during an accident may file a mini tort against the at-fault driver. Previously, Michigan limited the mini tort claim to $1,000 in damages, but the state increased the maximum to $3,000 in July 2020.
2. First-Party Claims
If you and your insurance company disagree on your no-fault benefits, you may be able to file a first-party claim against the insurance company for unpaid, underpaid, or overdue benefits. That said, you must file your claim within one year to qualify for first-party claims.
3. Third-Party Claims
Michigan’s no-fault insurance law allows drivers to file third-party claims for non-economic damages. The claim enables injured drivers to recover damages from the at-fault driver or their insurance company for pain and suffering. The claim only applies in certain circumstances, and you must file the claim within three years to qualify.
Mandatory Car Insurance Claims Coverage in Michigan
Alongside no-fault insurance coverage, Michigan requires all licensed drivers to carry four kinds of car insurance claims coverage. The policies create a coverage umbrella called personal liability and property damage coverage, or PLPD.
PLPD is considered the minimum coverage drivers must legally carry in the state. It does not include optional coverage, which we will discuss below.
PLPD coverage includes:
1. Personal Injury Protection (PIP)
No-fault PIP coverage provides assistance and reimbursement for lost wages, in-home care services, medical costs, and household maintenance duties.
2. Property Protection Insurance (PPI)
PPI covers any damage that you may cause to another person’s property, including parked cars, fences, trees, and lawns. Michigan requires state drivers to have at least $1 million in PPI coverage.
3. Residual Bodily Injury Liability (BI)
BI protects you if you cause an accident that results in severe injury to another driver. As of July 2020, Michigan drivers must carry BI coverage worth at least $100,000 per accident and $50,000 per person.
4. Property Damage (PD)
PD protects you and your family if you cause damage to a driver’s vehicle outside of Michigan. Drivers must carry at least $10,000 in PD coverage.
Encore Insurance Group: Providing Peace of Mind When You Need It Most
If you sustained an injury in an automobile accident, you don’t need corporate insurance agencies creating more stress in your life. Instead, you need compassionate, friendly care from experts you can trust.