Michigan No-Fault Auto Insurance Coverage
Michigan insurance laws require that drivers carry no-fault insurance. In Michigan it’s against the law to drive or let your car be driven without carrying no-fault insurance. In fact, to obtain Michigan license plates, you must show proof of basic auto insurance coverage.
Collision
Collision coverage pays to repair or replace your vehicle if it’s damaged in an accident. If your vehicle is financed or leased, your lender may require that you have this coverage. There are 3 types of collision coverage available in Michigan:
The protection provided by the 3 types of collision coverage differs based on who’s at fault in an accident:
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Standard: Repair or replacement of an insured car is covered regardless of fault. You’ll be responsible for paying your deductible if you ever file a claim.
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Broadform: You’ll only have to pay your deductible if you’re found to be more than 50% at fault in a covered accident. If you’re less than 50% at fault, you won’t have to pay your deductible.
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Limited: Repair or replacement of an insured car is covered only if the driver is found to be less than 50% at fault. If this is the case, you’ll have to pay your deductible.
However, if the driver of the insured’s car is more than 50% at fault, damages resulting from the incident are not covered.
Report a Claim
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Basic No-Fault Auto Insurance:
Personal Injury Protection (PIP)
This part of your Michigan no-fault policy pays all necessary medical costs if you’re hurt in an auto accident. It also pays, up to a maximum amount, lost wages for up to 3 years.
What's covered?
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Medical expenses – If you’re injured in an accident, PIP coversgeneral medical expenses. There’s no limit on payment of medical expenses arising from auto accident-related injuries.
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Lost wages – If you’re unable to work due to accident-related injuries, PIP helps you recover lost wages. The limit on this varies according to your salary, and is limited to 85% of your gross income for 3 years.
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Replacement services – Should you need help performing household duties or other tasks due to accident-related injuries, PIP also helps pay for such necessary services. The limit on this is $20 per day for 3 years.
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Survivors’ payment – This amount varies and is subject to the assessment of the loss suffered by survivors. This payment may additionally cover necessary services required by survivors.
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Funeral expenses – If a covered individual dies from accident-related injuries, PIP helps pay for related funeral expenses. The limit for funeral expenses is $1,750 per person.
PIP provides protection to the policyholder, spouse, resident relatives, and passengers in the insured vehicle.
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