The Michigan No Fault Clause, also known as the Michigan No-Fault Insurance Act, is a crucial aspect of the state's auto insurance system. This clause requires all drivers to carry no-fault insurance, which provides coverage for medical expenses, lost wages, and other benefits regardless of who is at fault in a car accident. Under the Michigan No Fault Clause, the driver's own insurance company is responsible for covering these expenses, regardless of fault. This approach aims to ensure that accident victims receive prompt medical care and financial support without the need for lengthy legal battles to determine liability. It also helps prevent cases from clogging the court system, reducing the burden on the legal system. There are different types of coverage provided by the Michigan No Fault Clause: 1. Personal Injury Protection (PIP) Coverage: PIP coverage is a mandatory part of the Michigan No-Fault insurance policy. It provides coverage for medical expenses, rehabilitation costs, and lost wages for the driver, passengers, and pedestrians involved in an accident. This coverage remains in effect regardless of fault and has specific limits and time frames. 2. Property Protection (PPI) Coverage: PPI coverage is another mandatory coverage type under the Michigan No Fault Clause. It pays for the damage caused to another person's property, such as a vehicle, in an accident where the insured driver is at fault. PPI coverage has a fixed limit that varies depending on the policy. 3. Bodily Injury Liability Coverage: Although not a part of the No-Fault Clause, it is essential to understand that Michigan drivers are also required to carry bodily injury liability coverage. This coverage protects the insured driver from potential lawsuits filed by individuals injured in an accident when the insured driver is at fault. It covers the legal expenses, settlements, or judgments that may arise from such lawsuits. 4. Residual Liability Insurance: In addition to the previously mentioned coverage types, Michigan drivers are required to carry residual liability insurance. This coverage protects the policyholder if they are sued or found responsible for injuries or damages exceeding their coverage limits. Overall, the Michigan No Fault Clause ensures that accident victims receive the necessary financial assistance quickly, reducing the burden on the court system and providing peace of mind to drivers. Compliance with this clause is crucial for all Michigan drivers to protect themselves and others on the road.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.