Michigan’s no-fault car insurance laws have undergone some dramatic changes, and as a result, all Michigan motorists must make important selections as to how best to protect themselves and their families.
Under state law, automobile accident victims are no longer guaranteed lifetime coverage for medical and rehabilitation expenses unless they specifically purchase that coverage. Also, drivers will see added liability in some instances for the medical expenses they caused others to incur.
What Are the New Changes?
Drivers have more options for PIP (personal injury protection) medical benefits, including the choice of opting out of coverage. Let’s look at the primary changes:
PIP Coverage Options: The biggest decision Michigan drivers will make is selecting a level of PIP coverage. Motorists can select from four PIP medical coverage levels:
- $50,000 for those on Medicaid;
- $250,000;
- $500,000
- Unlimited.
Bodily Injury Liability Coverage: Michigan law increases default bodily injury liability coverage limits to $250,000 per person and $500,000 per accident. Drivers are now required to carry bodily injury liability insurance in the amounts of at least $250,000 because of bodily injury to or death of one individual in any one accident and not less than $500,000 because of bodily injury to or death of two or more people in any one accident. But the law also says that a driver may elect to buy lower limits of $50,000 and $100,000. However, our attorneys recommend that Michigan drivers carry bodily injury liability insurance with limits of $500,000 and $1,000,000—it is often only a few dollars more per year.
Attendant Care: Auto insurance companies won’t be required to pay for more than 56 hours per week of in-home, family-provided attendant care.
Qualified Health Coverage: Qualified health coverage means either coverage under both Medicare Parts A and B, or health and accident coverage that doesn’t exclude or limit coverage for injuries related to auto accidents and has an annual individual deductible of $6,000 or less. For drivers to choose certain coverage levels and options, they and/or their family members may be required to be enrolled in health insurance coverage that qualifies as “qualified health coverage.”
“Excess” Medical Expenses: Under the Michigan No-Fault insurance law, drivers whose accident-related medical bills exceed the relevant PIP medical benefits coverage level in the auto insurance policy through which they have made their claim can bring a lawsuit against the at-fault driver in a third-party negligence suit for payment of their present and future “excess” medical bills.
Rate Factors: Insurance companies can’t use certain non-driving factors, such as a driver’s credit score or education, to set policy rates.
Must I Purchase Michigan No-Fault Insurance?
Yes. Michigan law states that as the owner and operator of a vehicle, you must purchase mandatory No-Fault insurance when both of these situations exist:
- When your “motor vehicle” is “required to be registered” in Michigan; and
- When you plan on driving or moving your vehicle on a highway.
Failure to carry no-fault insurance can result in serious penalties. What’s more, you put yourself and your loved ones in a vulnerable position in the event that you’re injured in an accident and uninsured. Plus, if you own a vehicle and you drive it—or let someone else drive it—without basic no-fault insurance, you may be found liable in a legal action for the injuries and damages that are caused by an accident. That includes your own. Plus, you may be charged with a misdemeanor and fined, incarcerated for a year, or both. Finally, the court may order that your license be suspended for 30 days or until you can provide proof of valid insurance.
What About If I’m Leasing or Borrowing a Vehicle in Michigan?
Michigan auto insurance laws are applicable even if you aren’t the “owner” of an automobile, like if you’re simply leasing or borrowing the vehicle for an extended period of time. To that end, Michigan law states that an individual is a motor vehicle “owner” if:
- They rent or lease a motor vehicle for more than 30 days;
- They hold legal title to the motor vehicle, except when they’re in the business of leasing the motor vehicle and have leased it out for more than 30 days; or
- They have the “immediate right” under an installment sale contract to possess the motor vehicle.
Speak With an Experienced Michigan Auto Accident Attorney
If you or a family member are involved in an auto accident in Michigan, you may be entitled to compensation for serious injuries. You need a reliable Michigan auto accident attorney that understands the Michigan no-fault insurance laws and can get you what you deserve.
For a free consultation with an experienced auto accident attorney in Michigan, contact Buchanan Firm. Our firm proudly serves people all across Michigan, including major cities like Grand Rapids, Muskegon, Detroit, Lansing, Holland, St. Joe, Kalamazoo, and Ann Arbor, and rural towns such as Lowell, Ada, Fremont, Newaygo, Grand Haven, Rockford, and Cedar Springs. We will meet you after hours, at home, or in the hospital to accommodate you.
