In October 1973, the Michigan No-Fault Insurance Act 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.
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.
Michigan No-Fault Attorney Can Help
To speak with an experienced Michigan Michigan No-Fault Benefits specialist, it is necessary to contact an attorney from our law firm today by calling (248) 588-3333 (24-hour) or (877) 737-8800. Remember, it is always crucial to speak with an attorney about your options as soon as possible to avoid negative effects that time can take on your case. Some of the legal areas we can assist you with include: