MICHIGAN NO-FAULT LAW

Michigan's No-Fault Law provides extremely valuable benefits to which you are entitled if you are involved in an auto accident related incident and injured.  These include allowable expenses, including reimbursement for medical costs, wage loss, replacement services, attendant care and mileage reimbursement.

Allowable Expenses reimburse you for your medical costs for medical treatment reasonably necessary and caused by your auto accident related injuries.  Typically, you look to your health insurer first for payment of your medical bills and any unpaid bills or bill balances would then be covered by your auto insurance in most circumstances.  However, the actual language of your health and auto insurance policies control.  Special care must be taken if your health insurance policy is an ERISA health plan under Federal law. 

Attendant Care benefits are paid when you need personal care due to your injuries, such as assistance with bathing, eating, dressing, and other personal care. 

Wage Loss benefits are 85 percent of any gross wages lost as a result of your injuries up to a statutory monthly maximum that is adjusted every year.

Replacement Services pays up to $20 a day for any services or household chores that you previously did for yourself, but now cannot do because of your injuries, and where you hire someone else to do them for you or a family member performs the services. 

Mileage Reimbursement is to cover your transportation costs to doctor's offices, hospitals, physical therapy centers, and to other medical treaters.

A detailed record of Attendant Care, Replacement Services and Mileage Reimbursement should be kept and then submitted periodically to the appropriate auto insurance company.  Medical  bills should be forwarded to your auto insurer directly from your medical treaters and any unpaid bills or bill balances that you received, you should immediately send to your auto insurer.

The medical expense benefit is a lifetime benefit.  Reimbursement for wage loss and replacement services only extends three (3) years from the date of the accident.

It is important to immediately contact your auto insurer and fill out a No-Fault Application and forward it to the carrier.  You have one (1) year from the date of the accident within which to file the Application for No-Fault Benefits.  If any particular medical bill or item of attendant care, replacement services, mileage or any wage loss is not reimbursed or your auto insurance company denies it, you must file suit within one (1) year from the date that individual expense was incurred.  If you do not take these steps within the given time periods, you may lose all rights to your No-Fault Benefits or reimbursement for the particular items.

Other Allowable Expenses include job retraining or vocational rehabilitation and modifications to your home in the event of spinal or other injuries.  A $1,750 benefit for funeral and burial costs is also allowed.

It is very important that you speak with an attorney knowledgeable in Michigan's No-Fault Law as soon as possible.


NON-ECONOMIC DAMAGES

Depending on the seriousness of auto accident related injuries, a person may qualify for Non-Economic Damages.  These damages include pain and suffering, mental anguish, fright, mortification, humiliation, embarrassment, loss of enjoyment of life and denial of social pleasures and enjoyment, among others.  These damages would be claimed against the negligent or partially negligent driver or owner of the vehicle that caused, in whole or in part, the auto accident.  Not every injury is serious enough to warrant a claim against the negligent party.  The recent Michigan Supreme Court case of Kreiner v Fischer made it much more difficult for injured persons to maintain a Non-Economic Damages or a third party liability claim.

Now, the law indicates that before a person can successfully maintain the Non-Economic Damages claim against the negligent party, an injured person must suffer, death, serious impairment of body function or serious and permanent disfigurement.  To prove a serious impairment of body function, the general ability of the injured person to lead his or her normal life must be affected.  The Courts now look to the “course or trajectory” of an individual's life and compares that persons life before and after the auto accident.

It is very important to speak with an attorney knowledgeable in Michigan No-Fault Law as soon as possible following an accident.


WHAT YOU SHOULD DO FOLLOWING AN ACCIDENT

Of course, immediately following an accident, you should make sure all those involved are medically attended to as soon as possible.  You should immediately contact the police and paramedics, if necessary. 

You should also obtain the name, address, driver's license number and plate numbers of all individuals and vehicles either involved in the accident or that witnessed any part of the accident.  You should obtain insurance company information from all other drivers or owners of other vehicles involved. 

You should also note how the accident occurred, the direction and location of the vehicles and whether anyone was issued a citation or ticket.  Names of the responding police and rescue agencies is also important.


UNINSURED AND UNDERINSURED COVERAGE

It is important that you do not settle a non-economic damages claim without first consulting an attorney knowledgeable in Michigan No-Fault Law.  In addition to non-economic damages, you may also be able to claim economic damages against an at fault party, if you suffer wage loss or other No-Fault benefits beyond the three (3) year limit. 

Also, if you settle a non-economic damages (third party liability) claim, you may lose entitlement to underinsured coverage.  That is because your own insurance carrier must first give you permission to settle with an at fault party if you are going to claim underinsured benefits.

Underinsured and uninsured coverage's are now generally offered by all major auto insurance companies,  except State Farm.  If you are involved in an auto accident with an uninsured party, you may be able to claim third party liability damages against your own auto insurer, if you have uninsured coverage.  This is an optional coverage and not mandated by Michigan Law.  If your injuries are worth more than the insurance coverage of the at fault party, you may be able to make an underinsured coverage claim against your own auto insurer.  For instance, if your injuries are worth $200,000 and the at fault party in your accident only has $20,000 limits (which are the minimum allowed in Michigan), then you could claim an additional $180,000 against your own insurer.

Again, it is very important not to settle a non-economic damages claim against an at fault party without first consultant with a knowledgeable attorney and specifically determining first whether any underinsured coverage is available. 


DISCLAIMER

The above information should not be specifically relied upon to make legal decisions.  There are always exceptions depending on the facts and circumstances of a persons particular case.  This web site is an advertisement for legal services.  The information is not intended as legal advice.

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