How Michigan No-Fault Insurance Affects Your Injury Claim
Michigan's no-fault insurance system directly shapes every auto accident claim in the state. Whether you're filing for PIP benefits, pursuing a third-party lawsuit, or dealing with a coverage gap from the 2019 reform, the no-fault system determines what compensation is available and from whom. Here's how it works in practice.
Filing Your PIP Claim
After an auto accident, your first step is filing a PIP (Personal Injury Protection) application with your own auto insurer — not the at-fault driver's insurer. You have one year from the accident date to file under MCL § 500.3145. PIP covers reasonable medical expenses, 85% of lost wages for up to three years, up to $20/day for replacement household services, and attendant care for seriously injured individuals. Your insurer will assign an adjuster who may try to limit or deny benefits — having an attorney involved early prevents this.
The Coverage Tier You Chose Matters Now
If you elected unlimited PIP coverage, all your accident-related medical expenses are covered. If you chose $500,000, $250,000, or $50,000, you may face a gap between your coverage and your actual costs. That gap must be recovered through a third-party claim against the at-fault driver's liability insurance, your health insurance, or out of pocket. Koussan Law evaluates every coverage source to close these gaps.
Third-Party Claims Beyond PIP
PIP does not cover pain and suffering. To recover non-economic damages, you must file a third-party claim against the at-fault driver and prove your injuries meet the "serious impairment" threshold under MCL § 500.3135. Fractures, spinal injuries, and permanent scarring typically qualify.
Navigating no-fault? Call Koussan Law at (313) 800-0000 or use our case calculator.
