Does Michigan Have No Fault Auto Insurance?

What is No Fault Auto Insurance?

No fault auto insurance is a type of car insurance system where the insurance company pays for the medical and property damage expenses of the insured, regardless of who caused the accident. No fault insurance is sometimes referred to as Personal Injury Protection (PIP) insurance. In some cases, no fault auto insurance may also provide additional coverage such as lost wages, funeral benefits, and more.

Does Michigan Have No Fault Auto Insurance?

Yes, Michigan does have no fault auto insurance. In Michigan, all auto insurance policies must include at least $250,000 of Personal Injury Protection (PIP) benefits. PIP benefits are designed to cover medical bills and other expenses that occur as a result of an auto accident. Michigan's no fault auto insurance system is designed to ensure that all drivers are protected from financial hardship in the event of an accident.

What Other Benefits Does Michigan's No Fault Insurance System Provide?

In addition to the mandatory $250,000 of PIP benefits, Michigan's no fault auto insurance system also provides additional coverage. This includes:

Lost Wages: PIP coverage can also provide up to 85% of lost wages, up to a maximum of $5,189.29 per month.
Funeral Benefits: PIP coverage can provide up to $5,000 in funeral benefits.
Replacement Services: PIP coverage can provide up to $20 per day for services, such as housekeeping and lawn care, that you are unable to perform due to an auto accident.

Can I Purchase Additional Coverage?

Yes, Michigan drivers can purchase additional coverage beyond the mandatory PIP benefits. This includes additional liability coverage, as well as uninsured/underinsured motorist coverage. Liability coverage is designed to protect drivers from the cost of damages to other drivers and property in the event of an accident, while uninsured/underinsured motorist coverage is designed to protect drivers from the cost of damages if the other driver does not have adequate insurance coverage.

Conclusion

Michigan does have no fault auto insurance, which provides drivers with at least $250,000 of Personal Injury Protection benefits. Michigan drivers can also purchase additional liability and uninsured/underinsured motorist coverage to further protect themselves in the event of an accident. Ultimately, it is important for drivers to understand their coverage options in order to make sure they are adequately protected in the event of an accident.