Insurance guidelines require automobile owners to have no fault car insurance in Michigan. This coverage is required for the car owner to get license plates for the automobile. The laws make it illegal for the owner of the auto to drive it or allow anyone else to drive the vehicle without proper coverage.
This policy provides for medical expense and wage loss along with the expenses for damage done to the property of others. This is the case without determining who is responsible for the accident. This basic coverage does not pay for repairs to the policy owner’s automobile resulting from this accident.
All of the policy owner’s medical expenses resulting from the named accident are covered. Up to 85% of the wages lost by the insured for up to three years are covered. There is a limit on the amount of the wages covered with this limit revised annually.
As of 10/1/10, the limit of the replacement of wages is at $4,929.00 per month. This is also the monthly limit surviving relatives can recover for up to three years in the event the policy holder is killed in the auto accident. This amount is adjusted based on the amount the relatives would have received from the earnings and fringe benefits of the insured.
There is also a $20.00 per month allowance for replacement services. The services are duties that the insured can no longer provide for themselves or their families. Services targeted include housekeeping and yard work among other similar duties.
The property damage replacement allowance in this policy for destruction of the property of others is up to $1 million. This property includes buildings, fences, and another person’s properly parked automobile. Damage to other vehicles is not covered in this policy.
The no fault car insurance in Michigan policy is designed to guard against the policy holder being sued because of an accident. There are certain special exceptions to this protection. These exceptions include at fault accidents resulting in the death, serious injury, or permanent disfigure of anyone. Also excluded are collisions in Michigan with an auto not registered in this state carrying a non-resident.
There is no protection in this policy for damages caused by the insured in an accident in a different state. The policy holder can only be sued for up to $500 dollars if they are 50% or more responsible for an accident resulting in damages to another uninsured vehicle.
The limits of coverage by a basic policy are up to $20,000 for a person injured or killed in the policy holder’s at fault accident. There is a $40,000 limit for a similar accident resulting in injuries or death to several people. Property damage coverage in a different state is limited to $10,000. Additional coverage providing higher limits is available for purchase.
Other benefits of this policy from this policy, offer protection for all family members living in the same household. There are personal injury benefits available to all family members in the household when passengers in other vehicles or as pedestrians involved in an auto accident. Unrelated persons without no-fault protection injured in an accident with the policy holder’s vehicle are covered. A motorcyclist in the same scenario is protected. There are other protections included that are listed in the insurance contract.
The no fault policy protects the insured up to the limits of coverage in the residual liability section if there is a law suit in an at fault accident. Many people will purchase higher limits of protection to cover against court decisions that exceed basic limits if the accident is charged to them. The greatest disadvantages are the limits placed on certain policy benefits if an insured is injured or killed in accident where he or she is not at fault
The policy does provide for unlimited medical and rehabilitation benefits. Michigan residents gave up the right to sue to gain this benefit and some others. Disagreements regarding the responsibility for the accident will not delay payment of medical bills. Damage to vehicles also falls under Michigan’s no-fault system. The benefits to this system include saving time and money in claims payment. This system of coverage is designed to save time, money, frustration, and stress on the part of auto policy holders. Benefits for defense in at-fault accidents are also included.