Michigan No-Fault Law requires every auto insurance policy to include Personal Injury Protection, which provides several benefits… medical, wage loss, loss of services, and burial costs.
Medical benefits are provided for you and your resident family members when injured in a car accident, whether the injured person was in a car, or just hit by a car as a pedestrian or while riding a bicycle, for example. Benefits are paid regardless of who caused the accident, and our No-Fault law stipulates that benefits are unlimited in total dollar amount and duration. In other words, if you’re seriously injured in a car accident, your medical expenses will be paid for as long as you need medical care. Multimillion dollar claims are not uncommon.
On your auto insurance policy you’ll notice that your Personal Injury Protection Medical coverage is either Full (also known as Primary) or Excess (also known as Coordinated). Full or Primary means your auto insurance company will pay all of your medical expenses without help from any other medical coverage you may have. Excess or Coordinated means your auto insurance is designed to cover your medical expenses only after other medical insurance has been called on to pay first.
If you have Excess coverage on your auto policy, it’s important to be sure your other medical insurance provides primary coverage in a car accident. Many employer group plans are self-insured and may not cover car accidents. Also, Medicare and supplements do not cover medical bills from car accidents.
Wage loss benefits will pay 85% of your gross wage, subject to a monthly maximum stipulated by state law of $5,189 (as of this writing). These benefits are payable for up to three years from the date of the accident that caused disability. The maximum monthly benefit is adjusted each year by law.