No-fault automobile insurance is required in the state of Michigan, and is crucial to ensuring that people who have been injured in any kind of car accident receives the medical, rehabilitation, and wage loss benefits that they are owed based on their policy agreement. In exchange for these and other benefits, motorists relinquish their rights to sue in the event of a car accident, unless said accident leads to death or severe injury, disability, or disfigurement. All of this is to eliminate the time wasted by those who would rather fight about who is at fault, than ensure that the victims of the accident get the help they need. Driving your car in Michigan without no-fault automobile insurance can be risky, and you can be held personally liable and sued if you should get into an accident, as well as be ineligible for no-fault benefits.
A basic no-fault automobile insurance policy will contain three main important parts, Personal Injury Protection (PIP), Property Protection (PPI), and Residual Bodily Injury and Property Damage Liability Insurance (BI/PD).
Personal Injury Protection (PIP)
Personal Injury Protection (PIP) consists of all the benefits you can receive related to your personal injury, to cover things such as medical costs, loss of wages up to three years, and other benefits related to replacement services to ensure that you and your family’s quality of life is not hindered as a result of an unforeseeable accident. In some cases, you may be able to coordinate your PIP coverage with other disability or health coverage in an effort to significantly reduce your premium, but you must check with your personal health insurer to get more information on your specific situation to see if that is something that would work for you.
Property Protection (PPI)
Property Protection (PPI) is coverage that is designed to help you out in the event that your accident resulted in damage to other people’s property. Property Protection (PPI) can contribute up to as much as $1 million to cover damages to buildings, properly parked cars, fences, and more.
Residual Bodily Injury and Property Damage Liability Insurance (BI/PD)
Residual Bodily Injury and Property Damage Liability Insurance (BI/PD) are like the insurance for your insurance. Though Michigan is a no-fault state, that doesn’t mean that you are protected against liability and lawsuits should you ever get into an accident that: kills or seriously injures someone else, is out of state, is more than 50% your fault, or involves a non-Michigan resident occupying a motor vehicle registered outside the state. Residual Bodily Injury and Property Damage Liability Insurance (BI/PD) protect you by covering what typically isn’t, including defense costs and other fees associated with your liability.
If you’ve been in an accident, the first thing you need to do is call the police immediately. If no one seems to be seriously hurt or in need of emergency medical attention, make an effort to exchange important information such as names and insurance details, and then contact your insurance agent or company to begin filing a claim. For more comprehensive information about no-fault automobile insurance, ways to customize your perfect policy, or other resources and contact information to help you better understand what is expected of you as a Michigan driver, download your copy of A Consumer’s Guide to No-Fault Automobile Insurance in Michigan. If you’re in need of a legal consultation, call Harris Law today at 231.347.4444 or fill out the free consultation form in the sidebar to schedule your free personal consultation.