No Fault Insurance In Michigan: What You Need To Know

What is No Fault Insurance?

No fault insurance is a type of coverage that applies to all drivers in the state of Michigan. It's a type of insurance that pays for medical expenses and lost wages related to an accident regardless of who was at fault. This form of insurance is also known as personal injury protection (PIP) or first party benefits. It's important to understand the basics of no fault insurance when you're getting ready to purchase car insurance in Michigan.

How No Fault Insurance Works in Michigan

In Michigan, no fault insurance coverage is mandatory for all drivers. This means that every driver must purchase a no fault insurance policy in order to legally drive in the state. The purpose of this insurance is to provide financial protection for the driver in case of an accident. No fault insurance pays for medical expenses, lost wages, and other damages that are caused by an accident, regardless of who was at fault. This type of insurance is designed to provide financial protection for drivers, so they don't have to worry about paying for expenses related to an accident out of pocket.

What Does No Fault Insurance Cover?

No fault insurance in Michigan covers a variety of expenses related to an accident. It pays for medical expenses, such as hospital bills, doctor bills, and prescription costs. It also pays for a portion of lost wages, up to a certain amount. This can be helpful if you're injured in an accident and unable to work. Additionally, no fault insurance pays for an additional portion of lost wages, up to the same amount, if you need to miss work to care for someone who was injured in the accident. Finally, no fault insurance pays for expenses related to funeral costs and death benefits.

What Does No Fault Insurance Not Cover?

No fault insurance does not cover property damage caused by an accident. This means that if your car is damaged in an accident, you will need to file a claim with your car insurance company in order to get the damage repaired. Additionally, no fault insurance does not cover any damages or medical expenses that are caused by a driver who is uninsured or underinsured. If you are in an accident with an uninsured or underinsured driver, you may need to file a lawsuit in order to get the damages covered.

Do You Need Additional Insurance Coverage?

No fault insurance should be enough to cover most accidents and injuries in Michigan. However, if you are in an accident and the damages exceed the coverage limits of your no fault insurance policy, you may need to purchase additional coverage. You may also want to consider purchasing additional coverage if you have expensive medical bills or lost wages related to an accident. Finally, if you have expensive property that you want to protect, such as a luxury car, you may want to purchase additional coverage to make sure it is protected in the event of an accident.

Conclusion

No fault insurance is a type of insurance that is mandatory for all drivers in Michigan. It pays for medical expenses and lost wages related to an accident, regardless of who was at fault. It's important to understand what is covered and what is not covered by no fault insurance in order to make sure that you have adequate coverage in the event of an accident. Additional coverage may be necessary if the damages exceed the coverage limits of your no fault insurance policy.