In 2020, Michigan implemented new legislation to help lower the cost of car insurance coverage options for Michigan drivers. The changes mean that some drivers are confused about their benefits and whether they can recover compensation for lost wages after a Michigan car accident.
Understanding Michigan’s unique no-fault car insurance system and what your policy covers when an accident occurs is essential to getting the money you need after a collision.
Michigan’s No-Fault System and Lost Wages Compensation
Changes in Michigan car insurance rules went into effect July 1, 2020. Although the new insurance rules have been in effect for several years, understanding what is covered and whether you can seek lost wages after an accident can still be confusing.
Michigan follows a no-fault car insurance model, meaning when an accident occurs, no matter who caused it, you file a claim with your car insurance company seeking compensation for your injuries. Typical no-fault car insurance includes personal injury protection benefits (PIP), which cover:
- Reasonable medical expenses
- Lost wages of up to 85 percent of the income you would have earned
- Up to $20 per day in replacement services if you are unable to perform household duties
Personal injury protection benefits help cover a portion of an injured accident victim’s lost wages if they cannot work due to accident-related injuries. Lost wages can be paid tax-free for up to three years after the accident date.
The exact benefits you may recover depend on your insurance coverage. The new legislation allowed Michigan drivers to choose the level of PIP medical coverage they prefer to meet their needs and budget.
Michigan Personal Injury Lawsuit and Lost Wages Compensation
Sometimes, a personal injury lawsuit may be the best option for pursuing the compensation you deserve. If you suffered a significant impairment and monetary losses, let us help you file a personal injury lawsuit.
Depending on the specifics of the accident and the severity of your injuries, you may be able to use a personal injury lawsuit to seek compensation for the following:
- Medical expenses
- Lost wages
- Loss of earning capacity
- Property damage
- Pain and suffering
Pursuing lost wages and other compensation via a personal injury lawsuit may be necessary when an insurance company fails to negotiate in good faith or denies your claim.
Contact a Michigan Car Accident Attorney Today for Help
The award-winning car accident attorneys at Atnip & Associates, PLLC, want to help you recover the compensation you need to cover your lost wages and accident-related injuries. Contact our office today to arrange a free legal consultation to learn more about your legal rights and options.
