Michigan no-fault insurance

What is Michigan No-Fault Insurance

The law requires you to carry Michigan No-Fault insurance. When you register your vehicle, certain coverage’s are mandatory.

Under the Michigan no-fault system, your insurance company pays you for the damage to your car from an accident, regardless of who is at fault. The other driver will get the damages to repair their vehicle from their insurance company. Under the Michigan no-fault system, you do not have to decide who is at fault to receive payment for your damages.

The Michigan No-fault insurance policy has three essential parts:

Michigan No-Fault: Bodily Injury and Property Damage (BI/PD) coverage

The first section is bodily injury and property damage; this coverage will protect you and your assets if the other driver sues you as a result of an auto accident. In Michigan, they can also sue you if you hurt someone with your vehicle, causing a substantial injury to the other driver, passenger, or pedestrian. This coverage also covers the cost of defending you in any suit for damages and also pays for the expense of the defense in addition to your liability limit.

Michigan mandatory Liability limits:

• 20,000 per person for someone who dies or has an injury from the accident
• 40,000 for each accident if several people are injured or killed
• 10,000 for property damage in another state

These limits will show as 20/40/10. If there is a lawsuit against you, the court could award a judgment more than these limits. This will usually depend on the severity of the accident and the assets that you have available. It is a good practice to carry higher liability limits than the state requires. You should discuss this with a local Michigan agent to discuss what limits might be right for you. 

Effective July 1, 2020, the Michigan No-Fault limits are changing to:

• 50,000 per person if an injury occurs or someone dies from the accident
• 100,000 for each accident if several people are injured or killed
• 10,000 for property damage in another state

Michigan No-Fault: Property Protection Insurance (PPI) coverage

No fault will pay up to $1 million for damages that you cause in Michigan to another party’s property, such as a parked car, building, fence or signpost. If the accident occurs out of state, the limits are from what you select from the property damage limit. 

Michigan No-Fault: Personal Injury Protection (PIP) coverage

This part of the no-fault policy pays all necessary medical costs if an injury is the result of an auto accident. Michigan is the only state in the country that offers unlimited medical. Michigan adds an assessment (MCCA) to all Michigan drivers’ policies as of 2019 this fee was $210.00.

Lost wages will be paid if you are unable to work due to accident-related injuries. PIP will pay up to 85% of your gross income for up to 3 years. This limit varies according to your salary, and the payout limits are set by the state. As of 2019, this limit was ($5900) this figure updates every October.

Survivors’ payments is an amount that the survivor receives, an assessment of the claim determines the amount if the insured dies as a result of the car accident.

Funeral expenses PIP helps pay for the related funeral cost if the covered individual dies because of the car accident. This limit can range between $1750- $5000 depending on coverage.

Replacement services PIP will pay up to $20 per day for three years if you need help performing household duties due to accident-related injuries.

For more information on Michigan No-Fault Coverage

These are the minimum coverages needed for no fault in Michigan if you would like to see the post on all Michigan insurance coverage’s click the highlighted link Understanding Michigan Insurance.

To contact a Michigan auto insurance agent to start your no-fault insurance, call 248-888-1134.