No Fault Insurance Law

Michigan’s “new” No-Fault Law goes into effect beginning tomorrow. We have provided you updates (perhaps “warnings” is the more appropriate word to describe it) of what to expect in several of our blogs over the last few months. Simply put, the new No-Fault Law allows Michigan drivers to select PIP medical coverage options ranging from unlimited to no coverage under the guise of a rate cut.

The new law includes other changes ranging from time and pay rate limits on family member provided attendant care, increased minimum liability limits, a medical provider fee schedule, and more. 

Minimum coverage for a vehicle is under Michigan’s No-Fault law is $50,000 under a First Party claim. This will include coverage for such costs as medical bills, lost wages, at-home nurse care, and other associated costs relating to healthcare appointments.

The other type of claim that can be made under the No-Fault law is a Third Party Claim, better known by many as what you may receive from pain and suffering caused by an accident where another party was at fault. Third-party claims include both economic and non-economic damages. The economic damages may include wages lost in the future as well as some medical or other “replacement” care required in the future, often because of a significant injury. The non-economic damages include claims broadly defined as “pain and suffering” based on the medical treatment needed because of injuries suffered from that accident. Its minimum limits were raised from $20,000 to $100,000 with the new law.

Under the old No-Fault law, medical expenses were unlimited in Michigan which would allow those injured to get the medical coverage they need to either help with recovery, or to help provide the care needed to support as normal of a lifestyle as possible, a critical need for motorists who suffered injuries that will prevent them from future work.

Beyond the adverse impact on injured motorists who were not at fault from an accident, the trickle-down effect on physician practices, many non-profits who provide programs that support those injured and more is going to be devastating. Many physician practices have already said they will have a difficult time surviving because many accident victims, who can comprise a large percentage of their patients, will have difficulty paying their medical bills. Non-profits around the state who support low-income victims of accidents have also been forced to shut down their programs because the money simply won’t be there to support the costs, something that has been further impacted by COVID-19 financial challenges.

Michigan’s new No-Fault Law that takes effect this week is complex and despite the detrimental impact it is likely to have on statewide residents, it’s here for the time being. The team at Bashore Green can help you navigate this law if you been injured in an accident. We also offer a free consultation, and if we take your case, we won’t get paid unless you get paid. Contact us today to learn more.