What Exactly is a No Fault Accident? Everything You Need to Know

By Alex Yoesting No comments

no fault accident
no fault accident

As a Michigan resident, you must meet the no fault auto insurance requirements to drive a vehicle in your state. This coverage protects you in case of being involved in a no fault accident.

These auto insurance laws establish certain conditions you must follow when you suffer a car accident. Don’t know what it means for you?

We’ve got you covered. We’ll tell you the basics about no fault accidents and what to do when you suffer a car accident in Michigan. Read on for your personal guide to no fault accidents.

Your ABCs About No Fault Accident Laws

While Michigan isn’t the only state that observes no fault auto insurance laws. This state follows one of the most complicated laws in the country. Yet, this shouldn’t stop you from preparing yourself for an unforeseeable car accident.

It all starts with learning the basics about no fault accidents. Michigan no fault auto insurance laws make insurers responsible for most if not all of any car accident damages.

It won’t matter if the car accident is your fault or not, your insurer will recoup any losses instead of the other party’s insurer. Your insurer’s responsibility will depend on your insurance coverage.

How Does Your Michigan Auto Insurance Work?

You may think these laws are a disadvantage. Yet, these requirements turn your auto insurance into a protective umbrella for your own family. This benefit only applies to a certain type of coverage.

Before buying your car insurance, you must consider what coverages and limits are the best options based on your state laws. Here are the 3 basic types of coverage you should consider to meet Michigan’s insurance requirements.

  • Personal Injury Protection (PIP)- This coverage will cover your medical bills and your income losses up to a certain percentage. This basic insurance protection will protect your family members as well.
  • Property Protection (PPI)- PPI will cover any damages to property caused by your accident. Basic coverage offers up to 1 million in damage coverage. However, this protection won’t cover any damages to other cars unless it’s a parked vehicle.
  • Bodily Injury and Property Damage- While a party may not sue you for car accident damages, you may be responsible in certain cases. This protection will protect you in those situations. An example is when an accident causes death, serious injuries or disfigurement to someone.

While these laws may increase your overall auto insurance cost, no fault benefits outweigh any cons. When you suffer an accident, you must file a claim with your insurer.

Your insurance company may ask you to submit certain forms or documents to cover your damages. Keep in mind that these laws ban you from claiming pain and suffering damages with your insurer.

The Bottom Line

No fault accident laws are difficult to navigate. But, learning the basics about your state’s requirements and seeking advice when necessary is the best way to protect yourself. You may consider getting more insurance coverage than the basic requirements.

Remember that even though your insurer will cover most of your damages. An injured party may sue you in certain cases. If you or a loved one suffered an accident, you should consider hiring an attorney.

Before contacting a lawyer, you should gather your documents and details about your accident. Also, you should make your own list of questions to ask during your initial consultation.

Don’t know where to start? Check out our article for the top questions you should ask your potential car accident attorney.