If you are involved in a Michigan auto accident, you are entitled to receive personal injury protection (PIP) benefits from the responsible no-fault insurer (usually this is your own insurance company). However, you should be aware that your auto insurance policy may have a high deductible that applies when you submit a claim for PIP benefits.
Under the Michigan No-Fault Act, personal injury protection (PIP) benefits are available to anyone who sustains an injury “arising out of the ownership, operation, maintenance or use of a motor vehicle.” MCL 500.3105. In most situations, the injured person receives no-fault benefits from his or her own insurance company. However, even if you do not have a car, you can still be injured in an auto accident. A passenger or pedestrian is still entitled to no-fault benefits regardless of whether he or she was the owner, driver or even an occupant of the motor vehicle involved in the accident.
The Michigan No-Fault Act allows your insurance carrier to sell two types of no-fault coverage: full medical coverage and coordinated or excess coverage.
First-party benefits are commonly provided by your own auto insurance company and provide compensation for certain economic losses: typically hospital and medical expenses, wage loss and replacement services. In order to receive the maximum first-party benefits, the claimant must provide notice to the responsible insurance company within one year of the accident.
The Zebra, a national quote comparison website for car insurance, released their 2016 report titled "The State of Auto Insurance" and it revealed bad news for Michigan residents. Michigan led the country with the highest average annual auto insurance premium. The report found that the average Michigan driver spends $2,087 per year on auto insurance.