Michigan No-Fault Coverage: What is it and how does it affect you?
In Michigan, PIP (Personal Injury Protection) is a mandatory coverage. Even the most basic auto policy includes it - but what exactly IS it?
A brief history
The no-fault system was made law in 1973. The system is designed to increase the level of benefits paid to injured persons, make sure such payments are made promptly, and reduce the cost paid for legal and administrative costs. The basic no-fault policy has three parts:
Personal Injury Protection (PIP)
Pays all necessary medical and rehabilitation costs for anyone injured in an automobile accident. It also provides wage loss benefits (subject to a maximum a mount) for up to three years - all of this is regardless of fault. In exchange, Michigan motorists gave up the right to sue in auto accidents except when someone is killed or seriously injured. The idea behind this being that medical expenses are paid out faster, even when there's a dispute over whom is "at fault".
Property Protection (PPI)
Pays up to $1 million for damage your car does in Michigan to other people's property - such as buildings or fences. It will also pay for damage your car does to another vehicle but ONLY IF THE VEHICLE WAS PROPERLY PARKED. Otherwise, the other vehicle damaged is covered only by their own collision and/or comprehensive coverage.
Basic No-fault does not cover:
Repairs to your vehicle after an accidnet - regardless of who was at fault.
Repairs to another person's vehicle after an accidnet - unless the vehicle was properly parked.
Costs for replacement of your vehicle if it is stolen.
"Mini-Tort" protection.
Additional Insurance you may want to consider
Increased Liability Insurance
Physical damage for your car (collision/comprehensive)
Limited Property Damage Liability Insurance (Mini-Tort)
Uninsured Motorist Coverage
Additional Information
Have questions? I'm here to help. Call Kris @ 734-662-3100 extension 27 for more information.
Note: The information in this article is designed to be a general overview of the topic. None of the information provided is to be used as a baisis for buying insurance. As always, you should talk with your agent for specific information regarding these coverages before making a buying decision.