Orlando Harmon
Personal protection insurance, also known as personal injury protection (PIP) or no-fault insurance, is a type of coverage that drivers in Michigan are required by law to carry. This insurance covers a driver's medical bills, lost wages, and other costs associated with a car accident, regardless of who was at fault. PIP insurance can help with medical expenses, attendant care or nursing services, medical mileage or transportation costs, lost wages, and replacement services or household tasks. It is important to note that there are different coverage levels and options available, and drivers in Michigan can choose the one that best suits their needs and budget.
| Characteristics | Values |
|---|---|
| Required by law | Yes |
| Who pays | Your own auto insurance company |
| What it covers | Medical bills, lost wages, medical mileage, replacement services, attendant care, death benefits, property protection insurance |
| Medical coverage levels | $50,000, $250,000, $500,000, unlimited |
| Medical coverage level for drivers on Medicare | Opt out |
| Medical coverage level for drivers on Medicaid | $50,000 |
| Lost wages | 85% of wages, up to $6,615 per month |
| Replacement services | Up to $20 per day |
| Death benefits | $5,000 towards funeral and burial expenses |
| Property protection insurance | $1 million |
Medical Expenses
Personal protection insurance benefits, also known as personal injury protection (PIP) benefits, are a mandatory form of auto insurance coverage in Michigan. These benefits are designed to help car accident victims with their medical expenses and lost wages, regardless of who was at fault for the accident.
Personal protection insurance benefits cover all "reasonably necessary" accident-related medical expenses, including doctor visits, surgeries, procedures, rehabilitation, prescription medications, and medical equipment such as wheelchairs and crutches. It also covers medical mileage, which reimburses victims for their transportation costs to and from medical appointments. Additionally, personal protection insurance benefits can cover home and vehicle modifications to accommodate any physical limitations or injuries sustained in the accident.
There are different coverage levels available for personal protection insurance benefits in Michigan. As of July 1, 2020, drivers can choose from the following options:
- A $50,000 limit on medical expenses for drivers enrolled in Medicaid.
- A $250,000 limit on medical expenses.
- A $500,000 limit on medical expenses.
- Unlimited medical coverage with no dollar amount limit.
- Opt-out of personal injury protection insurance if certain requirements are met.
It is important to note that the coverage level selected will determine the maximum amount that the insurance company will pay for an individual's medical expenses. If the medical bills exceed the coverage limit, individuals may have to sue the at-fault driver for the excess amount.
The choice of coverage level depends on an individual's needs and budget. It is recommended to consult with an insurance agent, insurance company, or financial advisor to determine the most suitable coverage option.
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Wage Loss
Under the No-Fault law in Michigan, car accident victims are entitled to wage loss benefits for up to three years after the accident. These benefits are calculated as 85% of the victim's gross pay, including overtime, and are subject to a monthly maximum that is adjusted annually to keep up with the cost of living. If the victim's injuries continue to prevent them from working beyond the three-year limit, they can sue the at-fault driver for the excess amount.
To claim No-Fault work loss benefits, individuals must file a No-Fault application with the applicable auto insurance company within one year of the accident date. They will need to provide proof of lost income, a work disability certificate from their doctor, and wage verification from their employer.
It is important to note that wage loss benefits under the No-Fault law will reimburse individuals for up to 85% of their lost wages. Additionally, if individuals have other sources of income, such as sick leave or vacation time, their wage loss benefits may be reduced accordingly.
In the case of self-employed individuals, determining the appropriate level of benefits can be challenging. While business expenses should be deducted from gross receipts to calculate wage loss benefits, courts make decisions on a case-by-case basis.
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Replacement Services
In Michigan, personal protection insurance is a type of coverage that drivers must carry if they drive regularly in the state. It is also referred to as "personal injury protection" or PIP. This type of insurance is required by law and provides benefits to cover medical bills and lost wages in the event of a car accident, regardless of who is at fault.
One of the key benefits of personal protection insurance is replacement services. These services are covered by No-Fault PIP insurance and are available for three years following a car accident. Replacement services cover the cost of everyday household tasks that the injured person would typically do themselves but can no longer do due to their injuries. This includes tasks such as housework, cleaning, laundry, grocery shopping, childcare, and running errands. The replacement services provision will pay up to $20 per day for these household services.
It is important to note that replacement services can be performed by family members and can include a range of tasks such as investment income, housekeeping, lawn and garden maintenance, car maintenance, meal preparation, babysitting/childcare, and driving family members to school or appointments.
To secure these benefits, it is necessary to file a No-Fault application for benefits with the applicable insurance company within one year from the date of the accident. Failure to do so may result in the loss of any benefits that the individual may be entitled to.
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Attendant Care
Personal protection insurance, also known as personal injury protection (PIP) insurance, is a type of coverage that drivers in Michigan are required by law to carry if they drive regularly in the state. This insurance provides benefits to pay for medical care and lost wages if you are injured in a car accident, even if you were at fault.
One of the key components of personal protection insurance is attendant care, which helps victims with "activities of daily living" that they can no longer perform independently due to their injuries. This includes things like bathing, grooming, eating, taking medication, and using the toilet. Attendant care can be provided by a nurse, home health aide, or even a family member or legal guardian of the injured person.
In Michigan, attendant care is considered a No-Fault PIP benefit, which means that it is covered by the injured person's own auto insurance company or the insurer of their spouse or family member. The specific amount of coverage and benefits available will depend on the No-Fault PIP medical benefits coverage level selected in the policy.
There are some important limitations to attendant care services under the new Michigan car insurance law. For in-home, family-provided attendant care services, insurance companies are only required to pay for up to 56 hours per week. This limitation does not apply to commercially-provided services or services provided in a residential facility. Additionally, the rates for attendant care services are generally based on the Medicare-based fee schedule in Michigan's No-Fault auto insurance law.
Overall, attendant care is an essential component of personal protection insurance in Michigan, ensuring that car accident victims receive the assistance they need with daily activities during their recovery.
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Medical Mileage
In the state of Michigan, there is no fixed medical mileage rate for 2020. Car accident victims often argue that the rate should be based on the IRS standard mileage rates, which are $.57 per mile for 2020. After July 1, 2021, the rate may depend on the No-Fault law's Medicare-based fee schedule.
To collect benefits for healthcare mileage expenses, a No-Fault application must be filed with the applicable auto insurance within one year from the date of the car accident. Victims should keep a detailed record of their mileage and transportation expenses and submit that information to their No-Fault insurance company along with their other accident-related treatment bills.
The No-Fault medical mileage reimbursement is one of the personal protection insurance benefits that car accident victims are entitled to under Michigan's No-Fault law. It is intended to help victims with their transportation costs as they seek medical treatment and care.
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Frequently asked questions
Personal protection insurance, also known as personal injury protection (PIP) or no-fault insurance, is a type of insurance coverage that Michigan drivers must carry if they drive regularly in the state. It covers medical expenses and lost wages resulting from a car accident, regardless of who is at fault.
Personal protection insurance covers medical expenses, including doctor visits, hospital stays, surgeries, procedures, medications, and rehabilitation. It also covers lost wages, up to three years from the date of the accident, and replacement services, such as housekeeping or laundry, up to a certain amount per day.
While unlimited coverage used to be mandatory in Michigan, drivers can now choose their level of PIP coverage. The available coverage levels include $50,000, $250,000, $500,000, and unlimited.
To file a claim, you must submit an application for Michigan PIP benefits to your auto insurance company within one year of the date of your accident. You will also need to provide a physician's note detailing your injuries and a lost wage verification form if you are seeking wage-loss benefits.
Personal protection insurance benefits are typically paid by the insured person's own auto insurance company. In some cases, the benefits may be paid by the insurer of the insured person's spouse or a relative who lives with them or by an insurer assigned by the Michigan Assigned Claims Plan.
