Michigan's No-Fault System: What It Means for You
Michigan operates under a no-fault insurance system, which means that after a car accident, your own insurance company pays for your medical expenses and other benefits, regardless of who caused the crash. This system is designed to ensure that injured people get immediate access to medical care and financial support.
The centerpiece of this system is Personal Injury Protection (PIP) coverage, which provides several types of benefits to accident victims.
Medical Expenses: Lifetime Coverage for Reasonable and Necessary Care
Under Michigan's PIP system, your insurance must pay for all reasonable and necessary medical expenses related to your car accident injuries, including:
- Emergency room treatment and hospitalization
- Doctor visits with specialists and your primary care physician
- Surgery and medical procedures
- Prescription medications
- Physical therapy and rehabilitation
- Medical equipment like wheelchairs, walkers, or home hospital beds
- Home modifications to accommodate disabilities
- Attendant care for daily living assistance
Importantly, there's no lifetime dollar limit on these medical benefits, your insurance must continue paying as long as the treatment is reasonable and necessary for your accident-related injuries.
Lost Income Benefits: 85% of Your Work Loss
If your injuries prevent you from working, PIP benefits include wage loss coverage:
- 85% of your gross income up to a maximum monthly amount (adjusted annually)
- Coverage for up to three years from the date of the accident
- Benefits for both employees and self-employed individuals
- Coverage for lost opportunities if you can prove specific income you would have earned
If you're unable to return to your previous job but can work in a different capacity, you may still be entitled to benefits for the difference in income.
Replacement Services: Help with Daily Tasks
When injuries prevent you from performing household tasks you normally handle, PIP covers replacement services:
- Housekeeping and cleaning
- Lawn care and yard work
- Childcare if you normally care for your children
- Transportation if you usually drive family members
- Shopping and errands
These benefits are available for up to three years and help ensure your family can maintain some normalcy while you recover.
Attendant Care: Professional and Family Assistance
For serious injuries requiring daily care assistance, PIP covers attendant care services:
- Professional nursing care in your home
- Help with bathing, dressing, and mobility
- Assistance with medical treatments
- Supervision for cognitive injuries
- Family member compensation when they provide necessary care
Family members can be compensated for providing attendant care, but proper documentation and approval processes must be followed.
Recent Changes to PIP Benefits
Michigan's 2019 insurance reform law introduced new PIP options that affect your benefits:
- Unlimited PIP - Traditional full coverage (recommended for most drivers)
- Limited PIP options - $500,000 or $250,000 caps (risky for serious injuries)
- PIP opt-out - Available only if you have qualifying health insurance (not recommended)
If you chose limited PIP coverage to save money, you could face significant financial exposure if seriously injured.
Common PIP Claim Problems
Unfortunately, insurance companies often create obstacles to PIP benefits:
- Delaying claim processing to pressure quick settlements
- Questioning medical necessity of treatments
- Demanding excessive documentation
- Disputing attendant care arrangements
- Refusing to pay for certain treatments or providers
When insurance companies deny or delay your PIP benefits, legal action may be necessary to get the coverage you're entitled to.
Don't Let Insurance Companies Shortchange You
PIP benefits are your legal right under Michigan law. If your insurance company is denying, delaying, or minimizing your benefits, you don't have to accept it.
At Shiraz Law Firm, we have extensive experience fighting for PIP benefits on behalf of car accident victims. We know the tactics insurance companies use to avoid paying claims, and we know how to hold them accountable.
You paid for this coverage. You deserve to receive the full benefits you're entitled to under Michigan law.
