NO-FAULT INSURANCE is required by law in Michigan. If you have an auto accident, no-fault insurance pays for your medical expenses, wage loss benefits, replacement services, and the damage you do to other people’s property. It does not matter who caused the accident.

How does insurance work in a no-fault accident?

No-fault insurance means that if you’re injured in a car accident, your own car insurance coverage will pay some or all of your medical bills and lost earnings, regardless of who was at fault for the crash.

How much does insurance go up after a no-fault accident?

However, if you previously caused an accident or made a claim, your auto insurance rates may go up after a no-fault collision. According to the Consumer Federation of America, drivers who have been involved in no-fault accidents see an average premium increase of 10 percent.

Does no-fault insurance cover pain and suffering?

No-fault insurance generally does not cover non-economic damages, including pain and suffering. A standard no-fault car insurance plan will primarily cover medical bills and property damage expenses. Optional add-on plans can account for other expenses.

What happens if someone hits you and you don’t have insurance Michigan?

The penalty for driving without insurance in Michigan includes: (1) a fine, jail and a driver’s license suspension; (2) being barred from suing an at-fault driver for pain and suffering compensation – even if he or she causes severe injuries and you are completely innocent and not at fault; (3) being disqualified from …

Can you sue in a no-fault state?

A “true” no-fault state wouldn’t allow lawsuits no matter what. In all states that require no-fault insurance, drivers still can sue if the damages involved are over a certain threshold. Usually, they can sue for actual damages but not for “pain and suffering.” The threshold varies by state.