Navigating the aftermath of a car accident can be challenging, but understanding your rights to insurance benefits in Michigan can help you secure the support you need. Recent reforms have aimed to reduce costs and provide better protection for drivers. If disputes arise, resources are available to help you resolve them and ensure you receive the benefits you’re entitled to. Stay informed and proactive to make the most of your insurance coverage.
Your insurance benefits after a car accident
If you’re involved in a car accident in Michigan, you are entitled to several insurance benefits under the state’s no-fault insurance system. These benefits include:
- Medical expenses: Your insurance will cover all necessary medical expenses related to the accident. Depending on your chosen PIP coverage, this can range from $50,000 to unlimited coverage.
- Wage loss benefits: If your injuries prevent you from working, you can receive wage loss benefits for up to three years. These benefits cover 85% of your lost wages, up to a monthly maximum of $7014.
- Replacement services: Your insurer can reimburse you for services you can no longer perform due to your injuries, such as household chores and childcare
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- Property protection insurance (PPI): This covers up to $1 million in damages to other people’s property caused by your vehicle.
It’s always best to review your policy to understand the specific details of your coverage.
Understanding the changes to Michigan auto insurance
Michigan’s auto insurance reform, enacted in 2019, has brought about sweeping, fundamental, and unprecedented changes to the state’s no-fault law. These reforms aim to reduce the high cost of auto insurance while providing more options and protections for drivers. The key changes include:
- PIP choice: Drivers can now choose from different Personal Injury Protection (PIP) coverage levels. Options include $50,000 for drivers on Medicaid, $250,000, $500,000 and unlimited coverage.
- Opt-outs: Drivers with Medicare can opt out of PIP medical benefits altogether, relying on Medicare for accident-related medical expenses.
- Attendant care limits: Insurance companies are now only required to pay for up to 56 hours per week of in-home, family-provided attendant care.
- Fee schedule: A fee schedule limits how much medical providers can charge for services covered by auto insurance.
- Increased bodily injury liability coverage: The minimum required bodily injury liability coverage has been expanded to provide better protection in the event of an accident.
Understanding these changes can help injured drivers determine the best financial way forward.
Handling disputes over coverage
Disputes over insurance coverage often arise, but there are steps you can take to resolve them:
- Contact your insurance company: First, discuss the issue with your insurance company. Provide all necessary documentation and try to resolve the dispute directly.
- File a complaint with DIFS: If the issue remains unresolved, you can file a complaint with the Michigan Department of Insurance and Financial Services (DIFS). They will review your case and attempt to resolve the dispute.
- Seek legal assistance: If necessary, you can seek legal assistance to protect your rights. Michigan law protects against bad faith insurance practices, holding insurers accountable for unfair treatment.
An insurance law attorney can help with this entire process, leaving the injured to focus on their physical and emotional recovery.
Get the help you need
The sweeping, fundamental and unprecedented changes to Michigan’s no-fault law affect every driver and car accident victim in this state. Those who have questions about insurance coverage or the recent no-fault law changes can contact an insurance dispute attorney.
