Normally, when you suffer injuries from an accident, you can sue the driver and make a claim against their liability insurance. However, in Michigan, the state has a “no-fault” auto insurance system in place that covers a driver’s medical needs no matter who’s at fault in an accident.

Called personal injury protection (PIP), it’s a component of a driver’s auto insurance that covers medical expenses, lost wages and other necessary services that the driver may need after suffering injuries from a car accident. This insurance was mandatory for all drivers in Michigan until 2020 when reforms allowed drivers who have Medicare and met other criteria to opt out of PIP.

If you have PIP, how does it work? Also, is there a way to still hold the other driver responsible for your injuries?

Coverage details

Under PIP, your insurance company will pay several benefits. These include:

• All reasonable medical expenses with allowances with limits that may be $50,000 (if eligible for Medicare Parts A or B), $250,000, $500,000, or unlimited based on the policy limits selected
• Up to 85% of the income you would have earned if you hadn’t been hurt for up to three years
• Replacement services for chores you can’t do yourself, capped at $20 per day for up to three years

You must file a claim with your insurance company to access these benefits. It’s important to file a claim as soon as possible after the accident since there’s a strict one-year time limit to receive the benefits.

Suing the at-fault driver – is it possible?

While PIP allows you to receive compensation regardless of who’s at fault in a car accident, you may be able to file a lawsuit against the at-fault driver under certain circumstances.

You can sue the at-fault driver for car accident injuries if one of the following criteria applies:

• If you’ve suffered a “serious impairment of bodily function”
• You’ve suffered permanent serious disfigurement
• If a loved one died because of the car accident

In addition to these, you may be able to sue for certain vehicle damages if your auto insurance doesn’t cover the repairs.

The threshold for what qualifies as a serious impairment is complex and often requires legal interpretation. If you think an at-fault driver owes you damages, consider consulting a legal professional. A personal injury attorney may be able to evaluate the specifics of your case and determine if you have a claim.

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