Michigan No-Fault Law

Most people know that Michigan Automobile Insurance Law is called No-Fault or PIP which stands for Personal Injury Protection.  Essentially, what that means is that if you are involved in an automobile accident, no matter who caused the accident, you look to your own insurance for medical coverage, wage loss benefits and household services, among other benefits.  Of course, there are a myriad of factors that go into the analysis of which insurance company covers the claimant and whether or not the claimant is actually entitled to those no-fault benefits.  

In general, no-fault coverage for those above mentioned benefits is payable to people who suffer injuries “arising out of the ownership, operation, maintenance or use of a motor vehicle.”  MCLA 500.3105.  This will include not only those in a motor vehicle but also pedestrians struck by a motor vehicle or a bicyclist.  Excluded from coverage will be a thief or an uninsured person and even perhaps an out-of-state motorist in an out-of-State vehicle not insured by a Michigan compliant insurance company.  However, most Michigan residents with insurance will be covered under the Michigan No-Fault statute.  

The reason this is important, is that our legislators are constantly trying to take away the benefits that the No-Fault Statute affords us.  House Bills (HB) are continuously being brought to the floor and offered to amend those No-Fault protections that we have as Michigan residents.  For example, just in February, HB 4612 (H-3) was offered on the floor of the Michigan House to substitute for H-1 which had been stalled in the House for almost a year.  H-3 imposes unprecedented limitations of medical benefits and treatment and services allowed to those involved in a motor vehicle accident.  More specifically, H-3 seeks to limit benefits for those catastrophically injured in accident by capping lifetime medical for residents and non residents alike.  

Fortunately, we have the Coalition Protecting Auto No-Fault (CPAN) looking out for Michigan residents and monitoring the bills that come before our legislators.  However, if you have concerns about auto No-Fault and your benefits, it is important that you contact your local legislators to voice those concerns.  At this time of year, it is more important than ever.  Many legislators try to push bills though because it will be a “lame duck” session soon.  Watch for this and contact your local representatives.  Already, there is yet another proposal with further attempts to limit your No-Fault benefits call HB 5854.  While plaintiff lawyers and organizations like Michigan Association of Justice and CPAN will do their best to block these bills, it would be helpful if you too spoke up and demanded the No-Fault protections you are entitled too instead of cut or reduced versions of it.  You pay your premiums and someday, you may need the coverage.  

Jessica Bray