Three Types of Michigan No-Fault Benefits
Lifetime Benefit – Medical Expenses & Transportation
The Medical Expense Provision of the Michigan No-Fault Insurance Law provides a lifetime benefit for medical expenses incurred because of auto accident injuries. The provision also provides for reimbursement of transportation expenses. This includes expenses for mileage to and from medical offices, hospitals and rehabilitation clinics, or bus and taxi fare when the car accident victim is unable to drive. You should keep a detailed record of mileage expenses and submit them to the insurance company along with other medical bills.
3 Year Benefit – Wage Loss & Replacement Services
Other benefits include Wage Loss and Replacement Services. These programs are both payable for three years from the date of the accident. The Wage Loss Provision provides for 85% of wages lost as a result of personal injuries. There is a statutory monthly maximum that is adjusted every year. The Replacement Services Provision pays up to $20.00 a day for you to hire someone to perform any services that you can no longer handle as a result of your automobile accident (i.e. mowing the lawn, snow shoveling, cooking, doing the dishes, or home cleaning.)
Within 12 Months Requirements – Filing Requirements
Your No-Fault Application for Benefits must be filed within 12 months of the accident. If you fail to file, you will lose your entitlement to any benefits. No action can be taken on your No-Fault Policy until this form has been filed. You must keep your receipts for expenses and file these with the insurance company. (Be sure to keep copies of all your receipts in case the insurance company loses them.) Additionally, if the insurance company refuses to pay for any of your expenses within 12 month from the date that it was incurred, you have 12 months from the date the expense was incurred to file a lawsuit against the insurance company. If a lawsuit is not initiated within 12 months of the incurred expense, your rights to collect will be forfeited.
Out of State Vehicle Accidents and your Michigan No-Fault Insurance
If you are a Michigan resident and are injured in an auto accident in another state, you are still entitled to Michigan No-Fault Benefits, with some exceptions. If a car accident occurs in another state, a Michigan resident may elect to receive Michigan no-fault first party benefits. Or, if the state where the auto accident took place is a pure tort state, the injured accident victim may choose to claim medical bills and wage loss in a lawsuit against the negligent out of state driver.
“Which option should the Michigan resident choose when injured in an out of state accident?”
Due to the generous nature of Michigan first party no fault law, including the right to lifetime medical coverage for all auto accident related injuries, most Michigan residents should normally choose to receive Michigan no-fault benefits. Please note that every state has different laws and statute of limitations that apply to vehicle accidents.