Michigan is a no-fault state for car insurance, meaning each driver carries personal injury protection (PIP) on their auto policy. PIP coverage is legally required in Michigan and pays for injuries after a car accident, so it’s important to know what it is and how it works. You can talk to a Michigan auto accident attorney if you have further questions about the state’s no-fault car insurance system.
What Is PIP Coverage?
PIP coverage is a type of no-fault auto insurance that will pay for your injuries and other losses after a car accident. PIP coverage on your auto policy is no-fault, so it will pay for injuries regardless of who caused the accident. In Michigan, drivers can choose between five levels of PIP coverage limits:
- Unlimited coverage
- Up to $500,000
- Up to $250,000
- Up to $250,000 (with PIP medical exclusions)
- Up to $50,000 (if enrolled in Medicaid and household members have Medicaid or PIP coverage)
Drivers can choose to opt out of PIP coverage requirements if they have Medicare and household members have an auto policy or health insurance that will cover car accident injuries. Driving without PIP insurance in Michigan is a crime, punishable by up to a year in prison, a $500 fine, and a 30-day license suspension.
What Does PIP Coverage Pay For?
PIP coverage in Michigan will pay for the following types of losses after a car accident.
- Medical Bills – PIP coverage will pay for reasonable medical bills associated with your injuries, including hospitalization, surgery, rehabilitation, prescriptions, etc.
- Lost Work Income – PIP coverage will pay for up to 85 percent of your average weekly earnings, up to a state-imposed maximum, for up to three years. If your damages exceed what your PIP coverage will pay, you could also sue the responsible party or parties for the difference.
- Replacement Services – Your PIP coverage should also cover the cost of replacement services while you are injured, such as transportation or childcare costs.
- In-Home Care – If your injuries require in-home care to help with daily living tasks, PIP coverage can pay for up to 56 hours per week of attendant care.
Notably, PIP insurance will not pay for non-economic losses, such as pain and suffering after an accident.
Can I Sue the Other Driver in Michigan?
PIP coverage is meant to be the “first line” of compensation after a car accident, but it’s not the only source. If your injuries exceed a specific threshold, you may be able to file an at-fault claim against the other driver for compensation. With an at-fault claim, you could potentially recover money for pain and suffering and other non-economic losses.
In order to successfully sue the other driver:
- The other driver was negligent and responsible for the accident, and
- Your injury caused death, serious impairment of bodily function, or serious disfigurement (MCL 500.3135), or
- Your medical bills exceed PIP coverage.
According to Michigan’s comparative negligence rules, you cannot sue the other driver if you were more than 50 percent at fault.
Additionally, Michigan has a “mini tort” provision where you can file an at-fault claim to recover up to $3,000 from the at-fault driver for vehicle damage. This can be useful in cases where vehicle damage doesn’t meet the deductible for collision insurance.
Contact Atnip & Associates, PLLC, Today
PIP benefits can make it easier to recover compensation after a car accident, but insurance companies will not necessarily treat you nicer. An attorney from Atnip & Associates, PLLC, can manage your car accident claims and push back against insurer attempts to deny or delay payments. We have extensive experience navigating Michigan’s no-fault insurance system and can pursue your claim efficiently and effectively. Contact us online today for a case consultation with a Michigan car accident lawyer.
