Under Michigan’s no-fault system insurance coverage following an automobile accident comes from two places. First-party, or PIP benefits come from your own insurance carrier and basically cover what can be referred to as economic losses; lost wages, medical care, household services, etc. Third-party benefits are paid by the insurer of the at-fault driver (yes, contrary to popular belief fault in an accident does matter under the no-fault system) and cover non-economic damages to compensate for the injury suffered. Today we are just going to break down the types of benefit covered by your no-fault insurance provider (and only skim the surface at that).
Michigan’s PIP, or First-Party auto insurance benefits cover three basic areas; wage loss, household services, and medical care. Wage-loss and household services and limited temporally and can only be received for the three years directly following the accident, while medical care is a lifetime benefit. Subject to some specific set-offs, your PIP insurer is responsible to pay for all of the wages you don’t receive as a result of injuries sustained in an auto accident. Household services are a little more rigid and compensation for household services is limited to a maximum of $20 per day. The big ticket item in most first-party cases in the medical benefit and that shouldn’t be surprising to anyone who has had a hospital bill in the last 10 years. Again this is a lifetime benefit, if you got in an automobile accident in 1973 your auto insurer is still responsible for medical expenses relating to that accident. In addition to hospital or emergency care PIP covers medications, nursing care, physical therapy and any other medical expense arising out of your auto accident.
If you have any questions about Michigan no-fault benefits, or think you may be owed benefits contact Foley Law Offices at (734)462-7500, or email me directly at [email protected]