Michigan Laws

Michigan is a no-fault state. This means that your insurance company pays most of the economic losses you suffer in an accident, regardless of who was at fault. These economic benefits are called First-Party Benefits. Third-Party Benefits usually cover non-economic losses, including damages for pain and suffering.

A. First party benefits are sometimes “coordinated” with your other insurance coverage, such as health insurance. In this case, your own health insurance will cover your medical bills. Once this coverage is exceeded, your damages are then paid by your no fault carrier. If you choose, you may ask your insurance agent about obtaining a first party no fault policy that is not coordinated with your other insurance coverage, although the cost of the policy will be somewhat higher.

First Party Personal Injury Protection"("PIP") benefits include:

• Medical costs and expenses for treatment necessitated by injuries, including rehabilitation expenses;

• Reimbursement for lost income resulting from the injuries, for up to three years;

• Reimbursement for ordinary and necessary services you would have performed for personal or household benefit (e.g., if you are disabled, and require assistance with tasks such as cooking, cleaning, or lawn care);

• In the event of death, the first party benefits include limited coverage for funeral and burial expenses.

• In the event that disability results from your injuries, you may be eligible for vehicle or home modification to accommodate your resulting disability.

B. Under Michigan auto law, Third-Party benefits provide damages for pain and suffering, scarring or disfigurement, death, and wage loss in excess of 3 years. The damages sought in a Third-Party case are non-economic in nature, but you must show that you suffered a "threshold injury." According to Michigan law, this means: A serious impairment of an important body function, serious disfigurement or scarring, or death.

It is very common for insurance company adjusters to assert that an injury is not a "serious impairment of a body function." However, if you have feel that you have a threshold injury, then you should contact IIHC to talk with an experienced Michigan auto accident lawyer.

Related Topics:

• Michigan Laws

• Process of Filing an Michigan Car Accident Claim

• Damages you can Recover

• Disputing a Claim

• Michigan Car Accident Facts