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Basic Provisions for No-Fault Insurance in Michigan


This article answers questions that individuals may have with no-fault insurance through the provisions of the laws in Michigan. 

Mandatory Insurance

MCL 500.3101(1) provides for Security for Payment of Benefits which provides: “The owner or registrant of a motor vehicle required to be registered in [Michigan] shall maintain security for payment of benefits under personal protection insurance, property protection insurance, and residual liability insurance. Security shall only be required to be in effect during the period the motor vehicle is driven or moved upon a highway.”

Who is considered the owner of the vehicle?

MCL 500.3101(2)(g) provides that an “owner” means:

  •  a person renting or having the use of a motor vehicle for a period that is greater than 30 days; 
  • a person who holds the legal title to a vehicle, other than a person engaged in the business of leasing motor vehicles as a lessor under a lease providing for the use of the motor vehicle by the lessee for a period that is greater than 30 days; or 
  • a person who has the immediate right of possession of a motor vehicle under an installment sales contract.

What is personal protection insurance?

MCL 500.3105 defines Personal Protection Benefits, to wit: “Under personal protection insurance an insurer is liable to pay benefits for accidental bodily injury arising out of the ownership, operation, maintenance or use of a motor vehicle as a motor vehicle.”

Is there a limit for claims under personal protection insurance?

MCL 500.3145(1) provides the Statute of Limitations on claims for personal protection insurance and it includes the following: 

An action for recovery of personal protection insurance benefits must commence within one year after the date of the accident, unless written notice of the injury is given to the insurer within one year after the date of the accident or unless the insurer previously paid out personal protection insurance benefits for the injury.

If the insurer receives notice or makes a payment, the injured party may commence an action any time within one year after the most recent incurrence of an allowable expense, a work loss, or a survivor’s loss. The claimant may not recover benefits for any loss incurred more than one year before the action’s commencement date. The claimant must provide notice with his name and address and the time, place, and nature of his injury.

These are the basic provisions of insurance in Michigan. We will always revisit and go back to these provisions during our discussions.

Get Proper Coverage

In case of doubt, keep in mind that it is your no-fault insurance provider who would ultimately pay for your medical bills. As long as you get unlimited or no-limit coverage, you should be properly covered at a time when you need the best kind of coverage for your health and safety.

Contact Your Lawyer Today

If you have an insurance claim that you need assistance with, you should contact us today. A lawyer can help you get started with your claim. A lawyer at Haque Legal will see to it that your needs are met from the beginning to the end of the proceedings. You are always in good hands with Haque Legal and what it has to offer.

Disclaimer

The article that you have read is based on general applications of the law. It is not legal advice and it is not to be construed as any legal consultation with the firm. No client-attorney relationship is created when you read the articles we have provided.

Let us help you out

If you are having trouble filing an insurance claim, call us immediately. If you have any problem with the law or are seeking justice and truth, our numbers are standing by to take your call.