Michigan’s no-fault car insurance laws govern the type of insurance that all licensed drivers must carry in order to register their vehicles in the state. These basic insurance coverages will pay for the cost of medical expenses, wage loss benefits, replacement services, and property damage in the case of an auto accident regardless of which party caused the accident. Michigan no fault attorneys can help you understand the coverage you need and how to proceed if you have been injured in an accident.
No-fault insurance policies in Michigan have three primary components:
1. Personal injury protection (PIP) pays for medical expenses related to the accident and has no coverage limit. This type of insurance also pays 85 percent of wages lost as a result of an injury for up to three years up to a certain annual maximum. The current wage replacement maximum is $5,541 per month as of October 2017. PIP coverage also pays $20 per day to cover the cost of hiring someone for household services you are no longer able to do yourself, such as yard work and cleaning.
2. Property protection covers the cost of repairing and replacing damage your accident caused to the personal property of others up to a coverage limit of $1 million. This type of insurance covers homes, buildings, fences, and parked cars, but not damage to your car or other vehicles in operation at the time of the accident.
3. Residual liability insurance covers the cost of lawsuits resulting from an auto accident. This can occur if you cause an accident in which another person was killed or permanently disfigured, you are involved in an accident with someone who is from outside of the state, you have an accident in another state, or you are at least 50 percent at fault in an accident in which auto damages aren’t covered by the other party’s insurance.
If you are involved in an auto accident, contact the Southfield insurance attorneys at Wigod & Falzon P.C. They can explain your rights and obligations and protect your family’s interests when an incident occurs.