Michigan No-Fault Rights

For many people, no-fault means that they will get their medical bills taken care of right away, this is why they pay for the additional auto insurance. However, people in Michigan have discovered that this is not always the case. In fact, the very auto insurance company that they have been paying to cover their medical bills is now trying to get away with not paying those bills, or paying only a portion thereof.

It is important to know what rights are yours in a car accident, and what your auto insurance carrier owes you. If you are having a very difficult time in getting things paid without a good reason from your auto insurance carrier, you might want to get a lawyer to help you – especially if creditors are breathing down your neck. You don’t want your credit ruined while they are wading through their own red tape.

As a rule, your basic no-fault auto insurance covers your medical expenses, wage loss, household assistance and survivor’s loss – no matter who is at fault for the accident. They must be paid within 30 days of the accident or when they receive reasonable proof of your claim. If they do not pay within the 30 days, by law they must also pay you 12% interest per annum for each claim. If they deny the fees unreasonably, they may even have to pay for the lawyer you use.

You will also have a claim against the auto insurance company of the driver who hit you if it was their fault. You may end up suing their auto insurance carrier as well as your own to get compensation. If you are denied, you have 12 months from the accident to file the lawsuit against the auto insurance companies. It is best not to wait the full 12 months, rather do it when you first see them denying your claims.




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