Michigan is one of a handful of states in the US with a no-fault auto insurance system. This means that regardless of who is at fault for an accident, each driver’s own insurance company is responsible for paying for their medical expenses, lost wages, and other covered expenses.
No-fault insurance can be complex, but there are a few key facts that all insurance adjusters should know:
- PIP is the foundation of Michigan No-Fault.
Personal injury protection (PIP) is the most important part of Michigan No-Fault insurance. PIP covers a wide range of expenses, including medical expenses, lost wages, and replacement services. PIP benefits may be available to all policyholders and their dependents, regardless of who is at fault for an accident.
- There are different levels of PIP coverage.
Michigan drivers can choose from four different levels of PIP coverage: unlimited, $500,000, $250,000, and $50,000. Drivers who choose limited PIP coverage may be able to save money on their premiums, but they should be aware that they may be responsible for paying out-of-pocket expenses if their medical bills exceed their PIP coverage limits. There is also an option to opt-out of PIP coverage.
- No-fault benefits can be paid directly to the provider.
When a policyholder files a PIP claim, their insurance company will pay the benefits directly to the medical provider, such as the hospital or doctor’s office. This eliminates the need for the policyholder to pay the bills upfront and then seek reimbursement from their insurance company.
Additional information for adjusters:
- PIP carriers must be notified within one year of the accident date.
- Adjusters must investigate all PIP claims in a timely and thorough manner.
- Adjusters must provide policyholders with written notice of any decision to deny or delay PIP benefits.
If you are an insurance adjuster working in Michigan, it is important to have a good understanding of Michigan No-Fault law. Contact us if you have any questions or would like to discuss a potential relationship with your organization.
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