Understanding Michigan’s No-Fault Insurance System

Michigan has one of the most unique and complex auto insurance systems in the country: No-Fault Insurance. If you live in Michigan and drive a car, understanding how no-fault works is essential — especially if you’re ever injured in an accident. At Seva Law Firm, we help car accident victims navigate Michigan’s no-fault laws to ensure they get the benefits and compensation they deserve.

What Is Michigan No-Fault Insurance?

Michigan’s no-fault law requires every driver to carry insurance that covers their own medical expenses and certain financial losses, regardless of who caused the crash. That means if you’re injured in an accident, you first turn to your own insurance policy — not the at-fault driver’s insurance — for coverage.

This system is designed to provide quick access to benefits without lengthy disputes about fault.

What Does No-Fault Insurance Cover?

Michigan no-fault policies generally provide three main types of benefits, also known as Personal Injury Protection (PIP):

Medical Expenses
- Covers reasonable and necessary medical care related to the accident.
- Depending on your chosen coverage level, this can range from a capped limit to unlimited lifetime benefits.
Wage Loss Benefits
- If you can’t work due to accident-related injuries, no-fault pays up to 85% of your lost income, capped at a state-set maximum, for up to three years.
Replacement Services
- Provides up to $20 per day to cover household tasks you can’t perform because of your injuries (like cleaning, cooking, or childcare).

Additionally, survivor’s loss benefits may be available for family members if a loved one is killed in a car accident.

Recent Changes to Michigan’s No-Fault Law

Michigan’s no-fault system underwent major reform in 2019, giving drivers more options and lowering required coverage levels. Key changes include:

Choice in PIP Coverage: Drivers can now choose from several levels of medical coverage (including capped amounts or unlimited).
Fee Schedules for Medical Providers: Medical costs for accident treatment are now limited to state-set rates.
Increased Liability Requirements: Drivers must carry higher bodily injury liability coverage to protect others if they cause an accident.

These changes were meant to reduce the high cost of Michigan auto insurance, but they also make it more complicated to understand your rights after an accident.

Can You Still Sue the At-Fault Driver?

While no-fault covers your immediate expenses, you may still file a lawsuit against the at-fault driver if your injuries are considered serious under Michigan law. These are known as third-party claims, and they allow you to seek compensation for:

Pain and suffering
Emotional distress
Excess medical bills not covered by your PIP
Excess wage loss

Why You Need an Attorney

Navigating Michigan’s no-fault system can be confusing, especially with the 2019 reforms and the strict deadlines for filing claims. Insurance companies often deny or delay valid claims, leaving accident victims without the support they need.

At Seva Law Firm, our experienced attorneys will:

Explain your no-fault benefits in plain language
Ensure all claims are filed on time
Fight insurance companies who refuse to pay what you’re owed
Pursue additional compensation from negligent drivers when possible

Contact Seva Law Firm Today

If you’ve been injured in a car accident in Michigan, don’t try to handle the no-fault system on your own. Let our team fight for you.

📞 Call 1-833-SEVALAW or visit www.sevalawfirm.com for a free consultation.

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