Caregiver's Corner: Auto–No Fault: Changes Are Coming!

By, Ashley Bieber, MSW Intern

Everyone knows that if you have a car you have to insure it with at least “PLPD”, and that car insurance is not cheap. But do you know what you are paying for; do you know what “No-Fault” insurance is?

Michigan No-Fault insurance covers not just the owner of the vehicle or the policy, but also their family. Currently, the coverage applies to all family members who live in the same home and applies even when the person is a passenger in another vehicle or a pedestrian and are involved in an auto accident.

In Michigan, the basic “PLPD” coverage requirements in a no-fault policy must consist of three parts.

First, there is Personal Injury Protection (PIP). This coverage is for when you are hurt in an auto accident. It pays for “all reasonably necessary medical expenses with no maximum limit. It will also pay up to 85% of the income you would have earned if you had not been hurt, for up to three years” (michigan.gov). Additionally, this coverage pays for home services such as housekeeping and yard work which may be required due to the injuries.

The next required basic coverage is Property Protection (PPI). This part of the policy pays for up to $ million dollars’ worth of damage you may cause in an accident to property owned by others, , such as parked cars, buildings, telephone poles, fences, or guardrails.

The third basic coverage is Residual Liability Insurance - Bodily Injury and Property Damage. This coverage protects you as the owner of the vehicle from being sued because an accident. Generally speaking, when you have insurance, there are only 4 ways to get sued as a result of an accident.

1. You are at fault for an accident in Michigan where someone is permanently disfigured, seriously injured, or killed.

2. You are at fault for an accident in Michigan and an injured party is a non-resident and, in a vehicle that is not registered in Michigan.

3. If the accident takes place in another state

4. If you are 50% or more at fault for an accident that causes damage to another person’s vehicle that is not covered by insurance, you can be sued for up to $1,000.

If the accident is eligible for a suit against you, this coverage will pay for damages up to the limits of insurance purchased and you will be personally responsible for the damage above your policy limits. The minimum state required Bodily Injury limits of $20,000 per person and $40,000 per accident. This means that regardless of how many people are hurt or how much the bills are no one person can collect more than $20,000 and the total the policy will pay is $40,000. For Property Damage the minimum coverage limit is $10,000 per accident and again with this limit, this is the maximum the policy will pay. Higher limits are available and can be reviewed with an insurance agent.

In July there are going to be some changes to the Michigan No-Fault insurance requirements. These changes will give you some more flexibility in the coverage you carry in these areas. The adjustments can save you in your auto insurance premium but will expose you to the risk of additional cost after an accident that would have previously been covered.

The next Family Caregiver University class will be held on Tuesday, June, 23: 10-11 a.m. via ZOOM. The class will focus on the changes of Auto- no-fault and what you need to know as it affects your personal liability and health.

To register for the class, please call (888) 456-5664. Other resources for caregivers can be found on www.caregiverresource.net

Caregiver’s Corner is provided as a public service of the Caregiver Resource Network. The Caregiver Resource Network is a collaboration of West Michigan organizations dedicated to providing for the needs and welfare of family and professional caregivers within the community. Funded by the Area Agency on Aging of Western Michigan with Older American’s Act Title IIIE, Family Caregiver Support funds.