Yes, Michigan is a no-fault state for car insurance. In the event of an auto accident, a Michigan driver’s no-fault personal injury protection (PIP) insurance pays for his or her own medical expenses, lost wages and at-home services like cleaning or laundry. It does not matter who caused the accident, unlike in fault states, where the at-fault driver must pay for the other party’s expenses.
Minimum Limits Required By Michigan Insurance Laws
Bodily injury liability: $50,000 per person / $100,000 per accident
Michigan No-Fault Restrictions on Car Accident Lawsuits
Each no-fault state has its own rules for when you can sue an at-fault driver after an accident. Currently, Michigan is one of the strictest no-fault states in the country, only allowing you to sue the at-fault driver under very limited circumstances.
When You Can Sue
If the accident is in Michigan and causes death, serious injury, or permanent disfigurement
If a Michigan driver is involved in an accident in another state
If a Michigan driver is in an accident within the state involving a non-resident driving a car not registered in Michigan
If the at-fault driver is sued, their liability policy will pay up to its limits. If the court awards more than their limits, they will be personally responsible for paying the amount not covered.
The first thing you should do after a car accident that is not your fault is to make sure everyone inside your car is safe and uninjured. Next, call the police, take pictures of the scene, and exchange insurance information with the at-fault driver so you can file a claim with their insurer. You should also report the accident to your insurance company in case you need to file a … read full answercollision, personal injury protection, or MedPay claim with your own policy.
What to Do After a Car Accident That’s Not Your Fault
Move your car away from oncoming traffic and address any injuries. If your car is driveable you should try to move your car out of harm’s way to avoid further accidents or injuries.
Call the police and file a report. This will help you further along the way when filing an insurance claim since a police report will most likely determine fault.
Get the other driver’s insurance information. Take a photo of their insurance card so that you can get in touch with their insurer if you need to file a liability claim.
Take pictures of the scene and damage to the cars. Insurers require evidence before they can settle a claim. Having pictures from the incident will help speed up the claim process.
Report the accident to your insurance company. Even if you don’t file a claim with your own insurance, you should still report the accident to your insurer since they might need to update information related to your vehicle.
Document any accident-related expenses. An accident can incur a bunch of hidden costs. Make sure you keep track of all expenses related to the accident so that you can be reimbursed.
File a property damage and/or bodily injury claim with the other driver’s insurance company. Having gathered all the pertinent information, contact the at-fault driver’s insurer and file a claim. Make sure you have all the information and documents mentioned above so that the process goes as smoothly as possible.
Filing an Insurance Claim When You’re Not at Fault
If an accident is not your fault, you can file a claim with the at-fault driver’s liability insurance. This will cover the cost of vehicle repairs and medical bills up to the limits of the driver’s policy.
Because it can take a long time for an insurance adjuster to officially determine fault, however, you can initially file a collision or personal injury claim with your own insurer to cover vehicle repairs and medical expenses, regardless of fault. Once fault is determined, your insurance company will recover the expenses from the at-fault driver’s insurer, and your deductible will be refunded.
Car insurance is so expensive in Michigan because the state has the highest minimum coverage requirements in the country. Michigan is also a no-fault state, meaning that drivers are required to purchase personal injury protection (PIP) to pay for injuries after a crash, regardless of who was responsible. While this is not unusual in a … read full answerno-fault state, Michigan’s PIP requirements are particularly high. Most policyholders will need at least $250,000 in PIP, and drivers even have the option to purchase unlimited PIP.
Finally, the high cost of insurance in Michigan has made coverage unaffordable for many drivers. Roughly 1 in 5 drivers in the state is uninsured, according to the Insurance Information Institute. Fewer insured drivers to pay premiums drives up rates for those who are paying. Similarly, a high rate of insurance fraud, fueled by Michigan’s generous benefits, has pushed premiums higher still. Studies show that 8%-10% of all claims in Michigan are fraudulent.
To summarize, high required coverage limits, fraud, and a large proportion of uninsured motorists have made Michigan one of the most expensive states for car insurance.
No-fault insurance is bad because car insurance premiums are higher in no-fault states, and it is difficult for drivers to sue for damages related to pain and suffering. No-fault insurance also does not penalize negligent drivers as much as so-called tort states.
Why No-Fault Insurance Is Bad:
Insurance rates are higher in no-fault states than tort states, on average, because more coverage is required.… read full answer
Your ability to sue an at-fault driver is limited.
Negligent drivers face less of an insurance penalty when they injure someone in a wreck.
No-fault states have higher traffic fatality rates than tort states.
It’s easier to commit insurance fraud in no-fault states.
On the other hand, there are also benefits to no-fault insurance. For example, no-fault insurance pays for medical expenses after all accidents, so it helps drivers immediately get their bills covered without having to wait for fault to be determined.
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