Motor vehicle collisions are responsible for thousands of deaths and injuries every year in Michigan. Between aggressive drivers in urban centers and high speed limits on rural interstates, there are many factors that contribute to overall crash risk.
When collisions occur, the people involved may require medical attention. The person who was not at fault for the crash may expect to hold the other driver accountable for their losses. However, the motor vehicle insurance system in Michigan is vastly different from insurance rules in most other states.
People involved in collisions are often unsure of how to cover their medical expenses. Who usually pays for the cost of collision injuries after a crash?
People can rely on their own policies
In most states, drivers rely on others to follow the law. Liability-based car insurance rules force people to depend on others to provide them with coverage after a crash. In Michigan, drivers generally use their own coverage first before making a claim against another driver’s policy.
Every driver in Michigan has the option of acquiring no-fault personal injury protection (PIP) coverage. Michigan’s no-fault insurance rules help protect people from the risk generated by uninsured motorists. Effectively, drivers rely on their own policies for medical care costs after a crash.
However, no-fault reform has slightly shifted that. While the state used to require unlimited no-fault coverage from every driver, laws adopted in the last decade have changed that. Drivers can reduce their no-fault coverage significantly or even eliminate it in certain cases.
In such scenarios where drivers have limited no-fault coverage or do not carry PIP coverage at all, they may need to file a claim against the other driver’s policy. Michigan does require liability coverage from drivers in addition to no-fault coverage. The motorist at fault for the crash has to have at least $20,000 in bodily injury coverage available. If they do not have insurance or if the costs from the crash go well above what their policy covers, then a lawsuit might be necessary.
Those injured by car crashes in Michigan also have the option of filing a personal injury lawsuit. Reviewing the circumstances of a car crash with both insurance policies can help people determine how to pay their medical bills after a wreck.
