If you do not know about auto insurance and the way it works within the state of Michigan explaining no-fault insurance is a difficult task. There are many rules dictating who pays what and when. This type of insurance is constructed to save people money with their insurance premiums. The problem is that it eliminates fault for those who truly are at fault. If you have questions about no-fault insurance in Michigan contact our no-fault accident attorneys at Goldman and Associates.
In October 1973, the Michigan No-Fault Insurance Act regarding benefits went into effect. Prior to that time, a person injured in an automobile accident could sue the driver of the vehicle responsible for the accident to recover damages for the injuries the person sustained. This system, however, was greatly flawed. First, many persons injured in automobile accidents were unable to recover damages for their injuries because the old system required that they be free of any contributory negligence. Second, seriously injured accident victims often received no compensation for medical expenses, wage loss, attendant care or household services because the minimum required liability coverage was only $20,000.00. Finally, it was regularly necessary to sue to recover damages. This necessity frequently led to lengthy delays in receiving compensation. Michigan’s No-Fault Act was meant to correct these problems by requiring self-insurance coverage irrespective of fault, prompt payment of benefits and limitations on suits against negligent drivers.
Types of No-Fault Insurance Claims
There are two types of no-fault claims in Michigan: first-party claims and third-party claims. First-party claims are against the no-fault insurer and are meant to cover accident victims, regardless of fault, for economic damages, also known as personal injury protection (PIP) benefits (i.e. payments for medical expenses, wage loss, replacement services, attendant care, mileage, survivor’s loss, and/or funeral expenses). Third-party claims are against the at-fault driver or owner of a vehicle. In third-party cases, the injured victim sues the at-fault driver or owner of a vehicle, alleging breach of a duty involving serious injury, for non-economic damages when death, permanent disfigurement or serious impairment of a body function result.
Eliminates fault when there is a car accident
No-fault insurance eliminates fault when there is a car accident. This means that if you are the victim of a car accident your own insurance will pay your damages instead of the insurance company of the other driver no matter who actually caused the accident. This type of insurance helps to reduce premiums for drivers throughout the state. It has its pros and cons, but overall it saves the average person money in the long run.
How a third party claim works
If the accident is between a driver and a pedestrian, or bicycle rider who does not drive and does not have no-fault insurance, that person would have to pursue a claim against the driver’s insurance policy. This is called a third party claim. The victim would sue the at fault driver for breach of duty to drive safely and responsibly. This lawsuit would occur if the injured party suffered a life changing injury. This is true even if the life change is only temporary. To pursue this type of lawsuit it is advantageous to contact our Michigan no-fault attorneys.
Ask a no-fault attorney to help decode Michigan’s no-fault law
Dealing with and decoding Michigan’s complicated no-fault car insurance is no easy task. Let one of our attorneys take on your case and protect your rights. A no-fault attorney from Goldman and Associates can speak to you regarding your accident and begin the proper actions to get your lawsuit off the ground. Call us at (877) 737-8800 and we will explain the basics of no-fault law and how it will affect you throughout the legal process. The telephone discussion will be free and you can talk from the comfort of your own home or while you recover in the hospital.