How Michigan’s No-Fault Insurance Affects Passengers Injured In Car Accidents
Michigan’s no-fault insurance system is designed to provide compensation for medical expenses, lost wages, and other financial losses following a car accident, regardless of who was at fault. While this system aims to simplify claims and ensure timely compensation, it can be complex for injured passengers who may not own a vehicle or have their own insurance policy. Understanding how Michigan’s No-Fault Act (MCL 500.3101 et seq.) applies to passengers is critical for obtaining the benefits and compensation they deserve.
Michigan’s No-Fault Insurance And Passenger Injury Claims
Under MCL 500.3105, Michigan’s no-fault law requires all vehicle owners to carry Personal Injury Protection (PIP) insurance, which covers medical expenses, lost wages, and other essential services for injured individuals. Unlike in at-fault states, where injured parties must prove liability, Michigan’s system allows passengers to receive compensation without proving fault.
Passengers injured in a car accident can file a claim for PIP benefits, but where they seek coverage depends on their insurance status and the insurance policies of others involved in the crash.
Who Covers A Passenger’s No-Fault Benefits?
Under MCL 500.3114(4), Michigan’s no-fault law follows a priority system to determine which insurance policy covers a passenger’s benefits:
- The Passenger’s Own Auto Insurance Policy – If the injured passenger owns a vehicle and has PIP coverage, their policy will cover their medical expenses and lost wages.
- A Spouse’s Or Resident Relative’s Policy – If the injured passenger does not have their own policy, but a spouse or family member in their household has PIP coverage, that policy may provide benefits.
- The Insurer Of The Owner Or Driver Of The Vehicle – If the passenger lacks their own coverage, they can seek benefits from the insurer of the car they were riding in.
- The Michigan Assigned Claims Plan (MACP) – If no insurance applies, the passenger may file a claim through the MACP under MCL 500.3172, which assigns an insurer to provide benefits.
Understanding this order of priority is essential, as passengers often assume they must rely on the driver’s insurance when other options may be available.
What Benefits Are Available To Injured Passengers?
Under MCL 500.3107, Michigan’s PIP benefits include:
- Medical Expenses – Covers necessary medical care, including hospital visits, surgeries, rehabilitation, and prescription medications.
- Lost Wages – Replaces up to 85% of lost income (up to a statutory monthly cap) for up to three years.
- Attendant Care – Covers services such as in-home nursing care if needed.
- Replacement Services – Provides compensation for household tasks the injured person can no longer perform, such as cleaning or childcare.
- Funeral And Survivors’ Benefits – If a passenger dies in the accident, their family may receive financial assistance for funeral costs and lost income.
Can An Injured Passenger Sue The At-Fault Driver?
While Michigan’s no-fault law restricts lawsuits in most cases, MCL 500.3135 allows injured passengers to file a lawsuit against an at-fault driver if their injuries meet the serious impairment of body function threshold. This means the injury must:
- Be objectively manifested (medically documented).
- Affect an important bodily function.
- Significantly impact the person’s ability to lead a normal life.
If these criteria are met, the injured passenger may seek non-economic damages, including pain and suffering. Additionally, passengers may sue for excess economic damages if their medical expenses and lost wages exceed PIP coverage limits.
How Michigan’s Recent No-Fault Reform Impacts Passenger Injury Claims
Michigan’s no-fault insurance reform (2019 Public Acts 21 and 22) introduced changes affecting all car accident claims, including those of injured passengers:
- PIP Medical Coverage Options – Policyholders can now choose different levels of PIP medical coverage, potentially reducing available benefits for injured passengers.
- Fee Schedule For Medical Providers – Limits on how much medical providers can charge for services may impact the treatment options for injured individuals.
- Limited Coverage For Non-Residents – Out-of-state passengers may no longer be eligible for Michigan’s PIP benefits unless they own a vehicle registered in Michigan.
These changes make it even more critical for injured passengers to understand their rights and explore all available insurance options.
Detroit Passenger Injury Claim Frequently Asked Questions
What Should I Do If I Am Injured As A Passenger In A Car Accident?
If you are injured as a passenger, seek medical attention immediately and document your injuries. Then, determine which insurance policy applies under Michigan’s no-fault priority system. You may need to file a PIP claim with your own insurer, the driver’s insurer, or the Michigan Assigned Claims Plan if no coverage is available.
Can I Receive Compensation If I Do Not Have Auto Insurance?
Yes. If you do not have auto insurance, you may still receive PIP benefits through a spouse’s or resident relative’s policy, the driver’s insurance, or the MACP. An attorney can help you determine the best course of action.
Can I Sue The At-Fault Driver If I Am Seriously Injured?
Yes. If your injuries meet the serious impairment of body function threshold under MCL 500.3135, you may be able to sue for pain and suffering and excess medical expenses beyond your PIP benefits.
What If The Car I Was In Was Uninsured?
If the vehicle was uninsured, you may still receive benefits through your own insurance or a household member’s policy. If no coverage is available, you can apply for benefits through the MACP.
How Long Do I Have To File A Claim?
Under MCL 500.3145, you must file a PIP claim within one year of the accident. If you plan to sue for pain and suffering, you have three years from the accident date.
Can I Be Denied Benefits If I Was Partially At Fault?
No. Michigan’s no-fault law provides benefits regardless of fault. However, if you were more than 50% at fault, you may be barred from recovering non-economic damages in a lawsuit.
What If The Driver Was A Family Member Or Friend?
Your rights remain the same, regardless of your relationship with the driver. You may still file for PIP benefits and, if necessary, pursue a claim against the at-fault party if your injuries meet the serious impairment standard.
How Does Michigan’s No-Fault Reform Affect My Claim?
Michigan’s recent no-fault reform may impact the amount of PIP benefits available to injured passengers. If the driver of the car you were in chose lower PIP coverage limits, your benefits may be reduced. Consulting an attorney can help clarify how these changes apply to your case.
Contact Our Detroit Auto Accident Injury Lawyers For A Free Consultation
If you were injured as a passenger in a Michigan car accident, you may be entitled to compensation under Michigan’s no-fault insurance laws. At Ravid & Associates, P.C., we are committed to helping injured individuals understand their rights and secure the benefits they need.
Contact our Detroit auto accident attorneys at Ravid & Associates, P.C. today by calling (248) 948-9696 to receive your free consultation. Our office in Southfield, Michigan, serves clients in Detroit and throughout the state. Let us help you recover the compensation you deserve.
