Pending Legislation Could Eliminate Michigan No-Fault System

February 29, 2012

Pending Legislation Could Eliminate Michigan No-Fault System

Michigan drivers injured in car accidents have the best medical coverage in the country, thanks to a state law that provides unlimited lifetime medical and rehabilitation benefits to people who properly insure their vehicles.

All of this could change, however, if state lawmakers approve a controversial overhaul of the state's no-fault insurance laws. The proposed law, which has been stalled in the legislature since October, would put an end to the state's unlimited no-fault benefit. While proponents of the bill argue that it could lower insurance rates for Michigan drivers, detractors have expressed concern that the proposed changes could prevent injured accident victims from getting the care they need.

Currently, Michigan is one of several states that use a no-fault car insurance system. No-fault insurance was introduced in 1973 as a method of minimizing court battles and streamlining the claims process for people injured in car accidents. The system allows injured drivers to receive medical benefits directly from their own insurance providers rather than waiting for a court to determine who was at fault for the accident that caused their injuries.

Mandatory Car Insurance Coverage in Michigan

No-fault coverage, also known as Personal Injury Protection or PIP, is one of three types of car insurance coverage that all Michigan drivers are required to carry. In addition to PIP, which insures against the driver's own injuries and related expenses, Michigan drivers must also purchase coverage for Property Protection as well as Residual Liability.

Property Protection provides coverage for damage that a driver may cause to someone else's property. Residual Liability, on the other hand, insures the driver in case he or she is sued or held responsible for someone else's injuries. This can happen when a driver is involved in an accident that leads to a death or severe injury. It can also happen when an accident results in economic losses that exceed the benefits available through PIP, or when a Michigan driver is involved in an accident in another state.

Get Legal Help if Injured

If you or a family member has been injured in a car accident in Michigan, contact an experienced personal injury lawyer to learn more about pursuing compensation for your medical expenses, rehabilitation costs and loss of income.

Article provided by Nemes, Rooney & McKindles, P.C.
Visit us at http://www.nrmlaw.com