Michigan No-Fault Auto Insurance Law
PIP, allowable expenses, the tort threshold, mini-tort, and post-2019 reform.
Michigan No-Fault Auto Insurance Law Definitions
PIP, allowable expenses, the tort threshold, mini-tort, and post-2019 reform.
- A Allowable Expenses Link
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Under MCL 500.3107(1)(a), No-Fault PIP benefits cover "all reasonable charges incurred for reasonably necessary products, services, and accommodations for an injured person's care, recovery, or rehabilitation." This includes medical treatment, prescriptions, medical equipment, attendant care, home modifications, transportation, and other out-of-pocket costs causally related to the accident.
See also - A Attendant Care Link
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In-home care provided to an injured person who cannot manage their personal care needs independently as a result of accident injuries. Attendant care can be provided by a family member or a professional caregiver and is reimbursable under No-Fault PIP as an allowable expense under MCL 500.3107(1)(a). Following the 2019 No-Fault reform, attendant care provided by a family member is limited to 56 hours per week.
See also - C Choice of PIP Coverage (Post-2019 Reform) Link
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Under Michigan's 2019 No-Fault reform (Public Act 21 of 2019), Michigan drivers can now choose from multiple levels of PIP medical coverage:
Choosing a lower level of PIP coverage reduces premiums but significantly limits benefits if catastrophically injured.
PIP Coverage Levels (Post-2019 Reform)
Coverage Level Description Unlimited Full coverage, no cap (prior default coverage) $500,000 Coverage up to $500,000 per person per accident $250,000 Coverage up to $250,000 per person per accident $250,000 with exclusion $250,000 per person; specific household members excluded if they have Medicare or Medicaid $50,000 Available only if insured has Medicaid Opt-out Available only if insured has Medicare Parts A and B - C Coordination of Benefits Link
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A no-fault policy election that makes another health insurance policy (such as employer-sponsored health insurance) the primary payer for medical expenses before the No-Fault PIP coverage kicks in. Coordinated policies have lower premiums, but they require the claimant to use their health insurance first and can result in disputes between the two insurers over payment.
Contrast with: Uncoordinated Benefits
- D Death Benefits Link
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Under MCL 500.3108, if a person dies as a result of injuries sustained in a motor vehicle accident, Michigan No-Fault provides for payment of up to $5,000 in funeral and burial expenses, as well as surviving dependents' wage loss and replacement services benefits.
See also - D Designated Healthcare Provider (DHP) Link
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Under the 2019 No-Fault reform, insurers may require injured persons to treat with designated in-network healthcare providers. Failure to use a designated provider can result in reduced reimbursement. This is one of the most contentious and practically significant changes in the 2019 reform.
- D DIFS (Department of Insurance and Financial Services) Link
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The Michigan state agency responsible for regulating insurance companies and financial service providers operating in Michigan. DIFS can investigate complaints against insurance companies for improper claims handling and can take enforcement action. Filing a complaint with DIFS does not substitute for legal action but can create a useful record of insurer misconduct.
Website: michigan.gov/difs
- F Fee Schedule Link
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Under the 2019 No-Fault reform, Michigan created a mandatory fee schedule capping the amounts that medical providers can charge for treating No-Fault patients. The fee schedule is based on Medicare reimbursement rates. Critics argued the fee schedule has caused some providers to stop accepting No-Fault patients.
- F First-Party No-Fault Claim Link
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A claim for PIP benefits filed by an injured person (or their insurer) against their own auto insurer. First-party claims cover medical expenses, wage loss, replacement services, and other allowable expenses regardless of who caused the accident. Michigan No-Fault is built around this first-party system.
Contrast with: Third-Party Claim
- H Home Modification Benefits Link
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Modifications to a residence made necessary by an injured person's disabilities following an accident - such as wheelchair ramps, widened doorways, roll-in showers, or grab bars - are reimbursable as allowable expenses under MCL 500.3107(1)(a).
- I Independent Medical Examination (IME) Link
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An examination of an injured claimant requested by the insurance company and conducted by a physician selected and paid by the insurer. Despite the name, IMEs are frequently used by insurers to generate opinions justifying denial of benefits. Courts and experienced attorneys are well aware that IME physicians often have financial incentives to minimize injuries. Under MCL 500.3151, a claimant is required to submit to a reasonable examination at the insurer's request, or risk suspension of benefits.
See also - M MCL 500.3101 Link
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The Michigan statute that requires all owners or registrants of motor vehicles to maintain valid Michigan No-Fault auto insurance. This mandatory insurance requirement - liability coverage and PIP coverage - is the foundation of the entire No-Fault system.
- M MCL 500.3135 Link
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The Michigan statute that defines the threshold a plaintiff must meet to bring a tort (pain and suffering) claim against the at-fault driver. See our statute guide: MCL 500.3135 serious impairment threshold. Under the McCormick v. Carrier standard (see below), a serious impairment of body function exists when the plaintiff has an objectively manifested impairment of an important body function that affects the plaintiff's general ability to lead their normal life.
- M McCormick v. Carrier Link
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A landmark 2010 Michigan Supreme Court decision (487 Mich 180) that established the current standard for proving a "serious impairment of body function" under MCL 500.3135. The Court rejected the more restrictive "Kreiner standard" (which required proof that the impairment affected the plaintiff's entire normal life) and held that the impairment need only affect the plaintiff's general ability to lead their normal life. McCormick significantly broadened the class of injured persons who can bring tort claims against at-fault drivers.
- M Michigan Catastrophic Claims Association (MCCA) Link
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A nonprofit association created by Michigan law (MCL 500.3104) that reimburses auto insurers for No-Fault PIP claims exceeding a set threshold (currently $600,000 per claim). Every Michigan auto insurer must participate in the MCCA, which is funded by a per-vehicle assessment charged to all insured Michigan vehicle owners. The MCCA effectively provides unlimited medical coverage for catastrophically injured accident victims in Michigan.
- M Mini-Tort Claim Link
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Under Michigan No-Fault law, a person whose vehicle is damaged by an at-fault driver can bring a "mini-tort" claim against the at-fault driver for vehicle damage not covered by their own collision insurance, up to $3,000 (MCL 500.3135(3)(e)). This limit was increased from $1,000 by the 2019 No-Fault reform.
- N No-Fault Benefits Link
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Benefits paid under Michigan's Personal Protection Insurance (PIP) system regardless of who was at fault in the accident. No-fault benefits include medical expenses, wage loss, replacement services, and other allowable expenses. The no-fault system ensures that injured persons receive necessary care and income support without having to wait for fault to be determined.
See also - N No-Fault Reform (Public Act 21 of 2019) Link
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Significant legislation that overhauled Michigan's auto No-Fault system, effective July 2, 2020. Key changes include: optional PIP coverage levels (replacing mandatory unlimited coverage); a medical provider fee schedule; limits on attendant care provided by family members (56 hours/week); anti-fraud measures; and a reduction in the uninsured motorist surcharge. The reform reduced auto insurance premiums but also reduced protections for seriously injured accident victims.
- O One-Year-Back Rule Link
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Under MCL 500.3145, No-Fault PIP timing depends on written notice of injury, whether the insurer already paid PIP benefits, lawsuit timing, tolling, and the one-year-back rule. Written notice of injury generally must reach the proper insurer within one year after the accident unless the insurer has already paid PIP benefits, and later litigation rules can limit which expenses are recoverable.
- P Peer Review Link
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A process in which an insurance company hires a physician (who does not examine the patient) to review the injured person's medical records and render an opinion about whether treatment is medically necessary or causally related to the accident. Peer reviews are often used to deny or terminate No-Fault benefits. Unlike an IME, the peer reviewer never meets the patient.
See also - P Permanent Serious Disfigurement Link
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One of two thresholds under MCL 500.3135 that allows a plaintiff to bring a tort claim against an at-fault driver. Permanent serious disfigurement covers significant, lasting changes to physical appearance - such as severe scarring - that are permanent and significant in degree.
- P Personal Injury Protection (PIP) Link
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The core component of Michigan No-Fault auto insurance, which pays for medical expenses, wage loss, replacement services, and other allowable expenses for people injured in motor vehicle accidents, regardless of fault. Following the 2019 reform, Michigan residents can choose their PIP coverage level, from unlimited to opt-out (for Medicare enrollees).
- P Priority Order (No-Fault) Link
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The order in which No-Fault insurers are responsible for paying PIP benefits when multiple insurers may have coverage. Under MCL 500.3114, the current analysis generally starts with the injured person's own policy, spouse's policy, or resident-relative policy, then applies special rules for situations such as commercial vehicles, employer vehicles, uninsured occupants, and motorcycle crashes. For pedestrians, bicyclists, and other non-occupants, MCL 500.3115 generally points to the Michigan Assigned Claims Plan unless household coverage is available under MCL 500.3114(1). The priority order is frequently disputed in complex cases involving multiple vehicles or uninsured claimants.
See also - M Michigan Assigned Claims Plan (MACP) Link
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A mechanism established by MCL 500.3171 et seq. that ensures uninsured accident victims can still access No-Fault PIP benefits through an insurer assigned to their claim. The MACP provides a safety net for those who have no applicable No-Fault coverage. However, benefits under the MACP are limited to $250,000 per person.
- P Property Protection Insurance (PPI) Link
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Under MCL 500.3121, Michigan No-Fault requires coverage for damage your vehicle causes to tangible property (other than vehicles) in Michigan, up to $1 million per accident. PPI covers damage to buildings, fences, telephone poles, and other property.
- R Replacement Services Link
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Under MCL 500.3107(1)(c), No-Fault PIP pays up to $20 per day for replacement services - the cost of hiring someone to perform household tasks (cooking, cleaning, lawn care) that the injured person cannot perform due to their injuries. Benefits are available for up to 3 years from the date of the accident.
- R Residual Liability Insurance Link
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The mandatory bodily injury and property damage liability coverage required under Michigan No-Fault law (MCL 500.3101). This coverage pays for injuries and property damage caused to others in accidents where you are at fault. Michigan law requires minimum coverage of $250,000 per person/$500,000 per accident for bodily injury and $10,000 for property damage.
- S Serious Impairment of Body Function Link
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The legal threshold under MCL 500.3135 that an injured person must meet to sue an at-fault driver for pain and suffering damages. Under McCormick v. Carrier, 487 Mich 180 (2010), a serious impairment of body function requires: (1) an objectively manifested impairment - meaning it can be verified by medical evidence; (2) of an important body function; (3) that affects the person's general ability to lead their normal life.
This is the most litigated threshold in Michigan auto accident law. Defense attorneys frequently argue that injured plaintiffs have not met it. Read our full analysis of what it takes to meet this standard.
- S Survivor Benefits Link
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Under Michigan No-Fault law, surviving dependents of a person killed in a motor vehicle accident are entitled to survivor's loss benefits, including replacement of the deceased's contributions to the household (up to $20/day for replacement services) and survivor's loss benefits for wage loss and other support, for up to 3 years (MCL 500.3108).
See also - U Uncoordinated Benefits Link
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A No-Fault policy that pays PIP medical benefits as the primary payer, before any health insurance. Uncoordinated policies cost more in premiums but are generally preferable for people without comprehensive health insurance or when the health insurer would have subrogation rights against the No-Fault recovery.
Contrast with: Coordination of Benefits
- W Wage Loss Benefits Link
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Under MCL 500.3107(1)(b), No-Fault PIP pays 85% of a claimant's after-tax wages lost due to accident injuries, up to a monthly maximum (adjusted annually), for up to 3 years from the date of the accident. Wage loss benefits require documentation of prior earnings and ongoing inability to work.
This glossary is provided for general informational purposes only and does not constitute legal advice. Reading this glossary does not create an attorney-client relationship. Laws change and Michigan statutes may be amended after the date this glossary was last updated. Always consult a licensed Michigan attorney for legal advice specific to your situation.