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Michigan No-Fault Basics


Auto No-Fault Law Overview

The basic concept of Michigan auto no-fault law is to guarantee payment of certain insurance benefits to anyone injured in motor vehicle accidents, no matter who’s at fault. However, people still have important rights against at-fault drivers.

What If There’s an At-Fault Driver?

Under the Michigan’s no-fault law, people injured as a result of the fault or negligence of another driver have important, but limited rights against that driver.


No-Fault PIP Benefits

No-Fault benefits including great coverage for a person’s medical and rehabilitation expenses.  These benefits also include income loss benefits and benefits for household services.  In cases of death, no-fault benefits also includes survivor’s loss.

Who is Entitled to No-Fault Benefits?

No-fault benefits are available to more than those who injured a typical motor vehicle accident.  These benefits can also be available to people injured in certain ways involving parked vehicles and to people injured while performing maintenance on vehicles.

Entitled to No-Fault Benefits
disqualified from no-fault

Who is Disqualified from Collecting No-Fault Benefits?

It is important to understand which people are automatically disqualified from claiming no-fault benefits, including owners or registrants of uninsured motor vehicles and people using stolen vehicles, to name a few.

Coordination of Benefits

The injured must understand if their no-fault coverage is coordinated or uncoordinated. Coordinated no-fault means their private health insurance company pays first for medical expenses, whereas no-fault coverage pays first in uncoordinated policies.

insurance policy

How to Make a PIP Claim

There are certain rules that apply to how people must notify their auto insurance company about their injuries as well as submitting their claims for benefits to a no-fault insurance company.

Who Pays No-Fault PIP Benefits?

No-Fault PIP benefits are generally collected from the injured person’s own no-fault insurance company, or from a policy issued to their spouse or resident relative. However, there are a few exceptions.

time limitations pip benefits

PIP Claim Time Limitations

The No-Fault Act contains two very strictly enforced time limitations for processing claims for No-Fault PIP benefits. These rules must be carefully followed in order to properly protect the claim.

Penalties for Non-Payment

The No-Fault Act contains specific penalties that can be assessed against no-fault insurance companies who do not honor their legal obligations to pay claims as required by the law.

Medical Providers

Independent Medical Examination (IME)

The No-Fault Act provides that when the mental or physical condition of a person is at issue, the no-fault insurance company can request to have the injured party examined by a physician of its choice.

Government Benefit Setoffs

Depending upon the facts of the case, there are different kinds of governmental benefits that can be deducted from PIP benefits, including social security and worker’s compensation, to name a few.

date of car accident

Time Limit to File Auto Accident Lawsuit

You have three years from the date of the car accident in Michigan to file a lawsuit against the other driver for your injuries. This applies to both bodily injuries and wrongful death claims.

Underinsured and Uninsured in Michigan

Purchasing these option insurance coverages helps fill the gap when your damages exceed the negligent driver’s policy limits, or when the negligent driver has no insurance at all.