Understanding Michigan's No Fault Insurance Act
The Michigan No-Fault Insurance Act applies to car and truck accidents that occur in Michigan. The No-Fault Act often applies to motorcycle accidents and other types of motor vehicles, under certain circumstances.
The No-Fault Act can provide an injured person and their family with critically important insurance benefits, including:
- “allowable expenses” - all charges for reasonably necessary products, services and accommodations for the injured person’s care, recovery or rehabilitation
(examples: medical bills, doctor and hospital bills; prescription drugs and other medications; home modifications needed due to injuries or disabilities caused by a car crash; “attendant care benefits” to pay family members, friends or staff to attend to your home nursing and other care needs) - “work loss benefits” - generally, 85% of the injured person’s lost earnings from work he or she would have performed, if the accident and injuries had not occurred. The 85% is generally calculated based on “pre-tax” or gross earnings.
- If the injured person was about to get a new, better job, the work loss benefits should usually be calculated at the new, better pay rate (the statutory test is what the injured person “would have earned” if they had not been injured. So, raises, cost of living adjustments and promotions that the injured person would have received, but-for the accident, are all supposed to be considered by the insurance company in calculating the work loss benefits properly.
- “temporarily unemployed people” - can qualify for work loss benefits under the statute
- “replacement services” - up to $20 per day for ordinary services that the injured person would have performed for himself or his dependents, if he had not been injured in the accident.
Several Types of Car Accident Claims in Michigan
First Party Action
This is an action seeking insurance benefits directly from an insurance company for medical expenses, attendant care, medical mileage, wage loss and replacement services. These claims are usually against your own auto insurer, though there are some exceptions to that general rule. There are strict time limits in many cases - generally, you must provide the insurer written notice of injury or file suit within one year of the accident.
Third Party Action
This is an action against the at-fault driver and/or owner of the car that injured you. Their insurance company will defend and indemnify them for the accident. This means that the insurer of the at-fault driver and/or the owner of the car that hit you will provide an attorney to defend the case and should pay a reasonable settlement, or the amount of a judgment after a jury verdict. A third party action seeks recovery of non-economic damages which includes recovery for pain and suffering, as well as "excess economic losses" which can include lifetime wage losses, if you are permanently disabled in the accident. This type of action generally has a three year time limit, though there are exceptions for minors and incapacitated adults that can allow a legal action to be brought more than 3 years after the accident.
Uninsured motorist/underinsured motorist action
This is an action for benefits under your own insurance company, if the driver and/or owner of the at-fault car was uninsured (or did not have enough insurance to cover your losses). UM/UIM claims are generally governed by the language of your insurance contract, rather than the No Fault statute. UM/UIM claims are not mandated by the No Fault Act, so only people who purchase UM/UIM coverage to protect themselves and their families are entitled to receive UM/UIM benefits.
Massage therapy treatments can be covered under an accident victim’s Michigan No-Fault auto insurance policy
The Michigan No-Fault statute allows for the payment of massage therapy expenses as allowable PIP medical benefits under appropriate circumstances. However, in order for massage therapy treatments to be covered under the No-Fault Act, the massage therapy must be: reasonably necessary for the accident victim’s care, recovery or rehabilitation as the result of injuries suffered in a motor vehicle accident; and the massage therapy charges must be reasonable in amount. See e.g. MCL 500.3105-3107. If these requirements are established, massage therapy treatment expenses should be covered under an accident victim’s Michigan No-Fault auto insurance policy in most circumstances.
Recovery of pain and suffering damages after an auto accident in Michigan
In 2010 the Michigan Supreme Court ruled that a person can qualify for pain and suffering damages if their general ability to lead a normal life has been affected as a result of injuries sustained in an auto accident. McCormick v Carrier, 487 Mich 180, 202; 795 NW2d 517, 530 (2010). The Court in McCormick also stated that there is no quantitative minimum as to the percentage of a person’s normal life that must be affected, nor is there a requirement as to how long an impairment must last in order to affect a person’s general ability to lead a normal life. Id.
If you or a family member suffer serious personal injuries, it is important that you know your legal rights. Hiring an attorney with extensive experience in accidents and insurance can help you deal with the process of your claim and alleviate some of the stress that follows accidents.
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By hiring one of our experienced insurance lawyers, we can help you get the benefits you should have access to. There are many types of No-Fault benefits you may be missing out on such as medical bills, income loss, case management services, medical mileage, home modifications, special transportation and more!If your insurance company has denied your benefits or you are having difficulty processing your claim, you should call us for a free initial consultation.
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