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Understanding Michigan No-Fault Law


In Michigan, automobile insurance benefits after a car accident are provided to victims regardless of fault. Specifically, whenever a person sustains an “accidental bodily injury arising out of the ownership, operation, maintenance, or use of a motor vehicle as a motor vehicle,” an insurance carrier is obligated to cover you for benefits under Michigan’s No-Fault Act. MCL 500.3105(1). However, specific circumstances may exclude the ability to recover insurance benefits, such as parked vehicles, intentional acts, entering, or alighting from the vehicle, or policy exclusions.

What’s Covered?

Wage Loss

Under MCL 500.3107(1)(b), automobile insurance carriers can reimburse an injured person who has lost time from employment up to 85% of their gross income and does not exceed the statutory maximum. Each year, the Department of Insurance and Financial Services adjusts the maximum No-Fault wage loss benefit. As of October 1, 2019, through September 30, 2020, the maximum wage loss benefits “shall not exceed $5,718.00 per month” for a period of three years following the accident.

Replacement Services

Under MCL 500.3107(1)(c), automobile insurance carriers can reimburse an injured claimant for assistance with the performance of the household chores. Services compensable have principally included common chores such as cleaning, baby-sitting, lawn care, snow shoveling, taking out the garbage, cooking, dishwashing, dusting, and grocery shopping. For the services to be compensable, an agreement must be made between the injured party and the service provider with an expectation or promise for payment. Absent the agreement, Courts have ruled the services were performed without the expectation of payment; thus, performed out of the kindness of the heart.

Medical Benefits (Allowable Expenses)

Under MCL 500.3107(1)(a), automobile insurance carriers must provide reimbursement for medical benefits in the event of personal injury or wrongful death from a motor vehicle accident. The expense must be incurred, which means an insurance carrier is not responsible for the pre-payment of the medical service or benefit. The amount of the service must be reasonable in amount. However, the general purpose of enacting the No-Fault Act was for the prompt payment of all of the claimant’s medical expenses regardless of fault.

Michigan’s No-Fault Act provides for a broad range of medical products, services, or accommodations for reimbursement. Typical benefits include medical transportation, doctor visits, diagnostic studies like MRI, or X-ray studies, surgeries, physical therapy, injection therapy, medical mileage reimbursement, prescription reimbursement, home modification, attendant care services, and medical equipment.

Our Southfield car accident lawyers at Haque Legal specialize in handling automobile accident insurance benefit claims. The information in this blog post (“post”) is provided for general information purposes only, and may not reflect the current law. No information contained in this post should be construed as legal advice.

The post Understanding Michigan No-Fault Law appeared first on Haque Legal.

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