No-Fault Auto Accident Insurance
Michigan updated its regulations for no-fault auto insurance in 2020. You can use this kind of insurance to get coverage for your medical expenses and lost wages after a collision with another vehicle, no matter who is at fault. Our team at Encore Insurance Group can help you learn about the state’s laws and your insurance options.
No-Fault Auto Insurance Policies in Michigan
About one dozen states around the country have no-fault car insurance laws. No-fault car insurance means that you can receive compensation for your medical expenses and lost wages regardless of who caused the accident.
Michigan allows no-fault medical coverage through personal injury protection (PIP) policies, up to your policy limits. The policy owner can get compensation through a PIP policy. Other individuals may also get protection through this policy, including:
- All family members who live in your house
- Passengers or pedestrians without insurance who got hurt in the accident
- Motorcyclists who sustained injuries in an accident that involved your vehicle
Compensation That Auto Insurance Policies Offer in Michigan
Your no-fault insurance policy may provide you with compensation for medical care that an accident requires, up to the limit of your policy (see below). In addition, you can get automatic compensation for your lost wages at work.
Your benefits may also cover replacement services related to tasks you cannot perform while recovering from your injuries.
Purchasing Personal Injury (PIP) Insurance in Michigan
You can count on your no-fault insurance to cover many of your medical expenses after an accident. However, in 2020, Michigan gave drivers the option to purchase limited PIP (Personal Injury Protection) policies. Under the new law, Michigan drivers now have the choice of one of the following PIP options:
- Unlimited personal injury coverage
- PIP coverage limit of $500,000
- PIP coverage limit of $250,000
- PIP coverage limit of $250,000 with certain medical exclusions (if you qualify)
- PIP coverage limit of $50,000 (if you qualify)
- Opting out of PIP coverage completely (if you qualify)
Limiting your coverage may lower your overall insurance bills. However, it means that your insurance company may be unable to cover all of your medical expenses, including the costs for:
- Emergency medical care
- The time you spend in a hospital
- Tests and assessments
- Surgeries and rehabilitation
What No-Fault Insurance Does Not Cover
Pain and Suffering
Michigan’s no-fault policies do not allow insurance companies to compensate policy-holders for non-economic damages that the accident (or your injuries) may have caused, such as:
- Mental trauma and emotional distress
- Pain and suffering
- Permanent disability
- Loss of enjoyment from life
Michigan’s mandatory coverages under no-fault car insurance system does not cover the damage to your vehicle. Instead, you must rely on the following.
You can carry collision coverage to get compensation for damages a crash causes. You may choose broad form, standard, or limited collision coverage to augment the coverage that your no-fault insurance policy provides.
Drivers in Michigan may also purchase a comprehensive car insurance policy. These policies cover damage from falling tree limbs, vandalism, theft, and other incidents not related to a car accident. You may want to carry higher insurance policies based on the value of your vehicle.