Michigan is a no-fault motor vehicle accident state. Michigan is alone in the entire United States with this law, and its reach and effects are particularly important to anyone who gets into an accident.

The no-fault system — also called personal injury protection (PIP) or first-party claims — simply states that anyone in a motor vehicle accident can collect a statutory benefit, without proving fault. And anyone does mean anyone, from pedestrians to passengers and anyone else in an accident with a motor vehicle.

What is covered?

The no-fault system, by whichever name, offers a great deal of benefits to Michiganites in auto accidents across the state, such as:

  • Lost wages for the first three years after an accident, at 85% of your salary
  • Up to $20 per day of replacement services for such things as laundry and house cleaning for three years
  • Lifetime benefits for medical and other “allowable expenses” related to the accident
  • Coverage for property damage from the accident

There is even limited protection against lawsuits against you, even if a court finds you responsible for the accident.

Answering criticisms

As a result of this mandatory coverage, Michigan has some of the highest insurance rates in the country. The other side of that coin is how protected drivers, passengers and pedestrians are. By law, if you are in a car accident, you have the right to recovery benefits.

This means that every time you speak with an insurance company attempting to minimize your payment or defer your claim or outright deny you, they are wrong. The confidence that comes from knowing that will give you leverage in any dealing you have with them.

The bottom line

For drivers and everyone else, the Michigan no-fault system is an enormous benefit to the insured. It’s such a fundamental piece of the law, when our clients need our assistance with this process we do not charge a fee provided the claim is not contested.

Keeping insurance companies honest and in line with respect to the law is what you go to an attorney for.