Everyone who registers a vehicle in Michigan is required to purchase no-fault insurance. It is illegal to allow your vehicle to be driven or to drive it yourself without no-fault insurance.
If you are involved in a motor vehicle accident, there are a number of things that no-fault insurance will pay for, including:
- Medical expenses
- Damage to other people's property
- Wage loss benefits
- Replacement services
No-fault insurance will pay these things no matter who was responsible for causing the accident.
There are three parts to a basic no-fault policy. These are:
- Personal injury protection (PIP): This will cover your medical expenses without a maximum limit. In addition, your wages will be paid up to 85 percent of what you would have earned for three years if you hadn't been injured. As of Oct. 1, 2017, the maximum amount of wage replacement is $5,541 a month. Finally, up to $20 a day will be paid for replacement services, such as yard work and household services as long as you are injured and unable to do the work.
- Property protection (PPI): This will pay for damage to other people's property up to $1 million, including damage to a parked vehicle.
- Residual liability insurance: This keeps people from suing you due to a motor vehicle accident, unless there are specific situations such as if someone is killed, permanently disfigured or seriously injured.
A no-fault policy will cover any family member who is living with you. Even family members who are pedestrians or passengers in another vehicle will be covered in an accident.
If you have been involved in an accident and your insurance company has denied a no-fault insurance claim, you have a right to appeal the claim. An attorney can help you understand your legal rights when it comes to filing a claim.