Michigan Car Insurance
When it comes to car insurance, Michigan is a no-fault state. That means an injured party turns to his or her own insurance company to pay for medical expenses and lost wages after a car accident. Under no-fault, the ability to sue the driver responsible for the accident is limited, allowable only under specific circumstances.
Personal Injury Protection (PIP) insurance is mandatory, but certain eligible individuals will begin having the option to opt-out of PIP beginning in July 2020. PIP pays all “reasonably necessary” medical expenses for those injured in a car accident. Beginning in July 202, there will be five available limits of PIP. The minimum for those not eligible for Medicaid will be $250,000. PIP also pays up to 85 percent of the individual’s income earned if they had not been hurt, for up to three years, to a state maximum. If a person is killed in a motor vehicle accident, the PIP policy pays the family up to a maximum amount for three years. PIP also entitles the injured party up to $20 per day for replacement services, such as hiring someone to do the common house and yard work they cannot perform.
In Michigan, circumstances permitting an injured party to go outside the no-fault system and file a personal injury lawsuit must involve serious injury or permanent impairment or disfigurement. The family of a person killed in an auto accident may file a wrongful death lawsuit.
The Michigan statute of limitations for filing a personal injury lawsuit resulting from a car accident is three years from the accident date. Failure to file by that deadline means a lawsuit cannot go forward in court. The personal representative of the estate must file a wrongful death lawsuit within three years of the death date.