Understanding Michigan’s No-Fault Insurance Law [Macomb County Guide]

Michigan operates under a no-fault auto insurance system, which means that when you are injured in a vehicle crash, your own insurance company pays for your medical expenses and certain other losses — regardless of who caused the accident. For Macomb County drivers, understanding how this system works before a crash happens can make a significant difference in how you respond after one.

The Basics of No-Fault Coverage

Under Michigan law, every driver is required to carry auto insurance that includes three components: Personal Injury Protection (PIP), property protection insurance, and residual liability coverage. According to the Michigan Department of Insurance and Financial Services (DIFS), PIP benefits cover all reasonable and necessary medical expenses up to the coverage limit selected, as well as wage loss and replacement services for up to three years after the date of the accident.

A no-fault policy covers all family members living in your household. According to DIFS, PIP benefits will be paid even when a family member is a passenger in another person’s vehicle or is a pedestrian when an accident takes place.

PIP Coverage Choices and Why They Matter

Following reforms enacted under Public Acts 21 and 22 of 2019, Michigan drivers can now choose from several PIP medical coverage levels rather than being required to carry unlimited coverage. Options range from a $50,000 limit to unlimited lifetime coverage. Drivers who have qualified health coverage (QHC) that meets Michigan’s eligibility requirements may be able to opt out of purchasing certain PIP medical coverage. Because those requirements can change, drivers should review the current DIFS guidance when evaluating their coverage options.

The coverage level you select directly affects what is available to you after a crash. Drivers who selected a lower PIP limit to reduce their premiums may face coverage gaps if their medical expenses from a serious crash exceed that limit. Before your next policy renewal, it may be worth reviewing the coverage level you have selected and whether it is appropriate for your situation.

Bodily Injury Liability Coverage

Michigan’s reformed no-fault law also changed minimum bodily injury (BI) liability coverage requirements for policies issued or renewed after July 1, 2020. According to DIFS, the default minimum is now $250,000 per person and $500,000 per accident, though drivers may select higher or lower limits. The minimum that can be selected is $50,000 per person and $100,000 per accident.

Bodily injury liability coverage applies when you are found legally responsible for injuries to another person in a crash. It is separate from PIP and covers claims made against you by other parties.

When No-Fault Benefits May Not Be Enough

Michigan’s no-fault system covers medical expenses and certain economic losses, but it does not cover everything. Pain and suffering, for example, are not covered by PIP benefits. Under Michigan law, an injured person may have grounds to pursue a claim against an at-fault driver for non-economic losses — but only if the injury meets a legal threshold known as “serious impairment of body function,” permanent serious disfigurement, or death. Whether a specific injury meets that threshold is a legal question that an attorney can evaluate based on the facts of the crash.

For Macomb County drivers, understanding the difference between what no-fault covers and what may require a separate legal claim can help you make informed decisions after an accident.

If You Have Questions After a Crash

If you or a family member were injured in a crash in Macomb County and are unsure of what your insurance covers or what legal options may be available, our team is here to help. We serve clients throughout Warren, Sterling Heights, Clinton Township, Roseville, Shelby Township, and the surrounding communities. To speak with an experienced Michigan personal injury attorney, contact us today.