Motor Vehicle Accident
No-Fault / First-Party Insurance
A No-Fault insurance system means that certain benefits are paid by your own insurance provider regardless of who was at fault in the accident. In Michigan and under most circumstances, your own insurance company will pay your benefits (medical bills, wage loss) regardless of fault. First-party benefits are paid by your insurance provider regardless of whether you were a driver, passenger, bicyclist, or pedestrian so long as you were injured in an accident involving another automobile.
Michigan Insurance Requirements
Owners of passenger vehicles, vans, and light trucks must purchase Michigan no-fault insurance before registering their vehicle. Out-of-state insurance policies cannot be used to meet Michigan insurance requirements for registering a vehicle. Motorcycles must also be insured but are not subject to no-fault insurance. Required coverages include bodily injury/property damage (BI/PD), personal injury protection (PIP), and property protection insurance (PPI). These required coverages do not pay for damage to your vehicle or cover theft. If you want your insurance company to cover damage to your vehicle or theft, you may choose to carry collision coverage (damage) and comprehensive coverage (theft).
BAGLEY & LANGAN, PLLC recommends that you keep your Michigan no-fault insurance certificate in your vehicle or carry it with you when you drive. If you cannot show proof of insurance to a law enforcement officer, the court may order the Secretary of State to suspend your driver license. Until proof of insurance is shown, the Secretary of State will not renew, transfer, or replace your vehicle’s license plate. You may be required to prove the vehicle is insured for not less than six months and pay $50, plus any other fees required by law. The plate could also be canceled if proof of insurance is not produced.
The New No-Fault Law
Michigan No-Fault law underwent extensive reforms in 2019. Many of the reforms took effect July 1, 2020. Prior to July 1, 2020, all Michigan No-Fault policies included unlimited medical benefits throughout an injured person’s lifetime. This included attendant care benefits. After July 1, 2020 policyholder can choose from different levels of PIP medical benefit levels. While vehicle owners still have the option for unlimited coverage, they can also choose a lesser amount ($500,000.00, $250,000.00 or $50,000.00). Additionally, policyholders can opt out of PIP coverage if they have Medicare or other qualified health coverage.