Before Michigan’s No-Fault Law went into effect in 1973, payments for auto accident-related injuries were often tied up in long, drawn-out disputes regarding who caused the accident and which driver (and which insurance company) was responsible.
To expedite the payment of medical and wage costs by making them a first-party benefit regardless of fault, Michigan’s citizens gave up litigation for pain and suffering settlement awards, unless there was a serious, catastrophic injury. Regardless of fault, the No-Fault Statute provides relief for:
- accidental bodily injury arising out of the ownership, operation, maintenance or use of a motor vehicle as a motor vehicle.
- reasonable charges incurred for reasonably necessary products, service and accommodations for an injured person’s care, recovery, or rehabilitation.
- loss of income from work an injured person would have performed during the first three years after the date of the accident.
- farmers who need reimbursement if they are injured in an auto accident, without requiring the standard employee provisions in the No-Fault Act.
- expenses not exceeding $20.00 per day, reasonably incurred in obtaining ordinary and necessary services.
The Order of Priority determines which auto carrier will cover the loss. If the injured person is a named insured on an auto policy, their own company is the highest priority for payment, unless the accident occurred during the course of employment.
Proper documentation will be needed for all requests for payment. An Application for Benefits will be sent to you, once your medical claim has been received. Your policy has either Primary or Excess* coverage. Check with your agent or view your policy declarations to find out what kind of coverage your policy has.
*If excess coverage was selected, your health carrier pays first and coordinates with your health insurance company for payment. It’s important to know an Excess policy requires the patient to follow the guidelines of their own health plan. In some cases, there may be a network of hospitals and/or physicians that must be utilized. Sometimes, a referral is required before going to a specialist. Excess coverage is not available when the patient does not follow their health plan’s guidelines.
If primary coverage is selected, your insurance company will process for payment medical expenses based on your selected medical limit.