How no-fault reform affects those with catastrophic injuries

On Behalf of | Jan 10, 2024 | Catastrophic Injury |

Just a few years ago, anyone injured in a Michigan car crash could expect thorough medical coverage. The law in Michigan once required unlimited no-fault personal injury protection (PIP) coverage. Regardless of how severe someone’s injuries were or who caused the crash, their policy could pay for their medical expenses. 

When state lawmakers reformed Michigan’s no-fault insurance law, they asserted that this move would save people money. Unfortunately, policies across the state have not become much more affordable. At the same time, those with catastrophic injuries may find themselves struggling for care. 

Some people have no PIP coverage at all

Under no-fault reform, drivers still have the option of investing in unlimited PIP coverage. They can also reduce that coverage to lower amounts. Some people only need $50,000 worth of PIP coverage if they have Medicaid coverage. Those on Medicare may eliminate PIP requirements entirely. They would then rely on the insurance coverage of the person who caused the crash to cover their medical expenses. 

The law in Michigan currently only requires $50,000 in bodily injury liability coverage if one person gets hurt or dies in a wreck. Those with extensive medical costs and lifelong lost wages may find that the available insurance is not nearly enough. They could also discover that the person who caused the crash didn’t have an active insurance policy, leaving them unable to file a claim at all. 

People hurt in a crash caused by someone else shouldn’t have to absorb those expenses. Filing a personal injury lawsuit could sometimes help those who discover that no-fault reform left them without the coverage they require.

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