What You Need to Know About Michigan’s No-Fault Accident System


In 1973, Michigan adopted a no-fault accident system to increase the compensation benefits for injured persons involved in auto accidents.


Michigan’s no-fault system aimed to make sure that financial compensations are promptly paid.

It also aimed to decrease payments towards administrative and legal costs.


Michigan’s no-fault system for auto accidents is unique in that it also encompasses vehicle damage.

Drivers in Michigan are required to purchase collision or comprehensive insurance (or both) that will cover their own vehicle damage.


Provides the victim with unlimited benefits for medical and rehabilitation expenses.

Provides the victim with benefits for wage loss up to a maximum of three years.

Provides the victim with up to $20 per day for replacement services.

No Sue Policy

A nosue policy was implemented after the no-fault policy was applied in Michigan.

The only time a victim or their family can sue the other party in auto accidents would be if the accident led to serious injury or death.


Every vehicle owner with a registered vehicle must have a basic vehicle insurance coverage to be issued a license plate.


Drivers found to be driving vehicles with no-fault coverage would find themselves facing misdemeanor charges.

Drivers can be fined up to $500, sentence to jail for up to a year, or both.

Additional costs and fines pursuant to the 2003 Michigan’s Driver Responsibility Law can also be implemented.

Suspension of driver’s license up to 30 days or until proof is presented that you have a no-fault coverage.

Vehicle registration renewal can be delayed until proof of no-fault coverage is presented.

Other Issues Post Accident

Drivers can be sued, and they may have to pay for attorney and court fees.

Injury from auto accidents that involve vehicles with no-fault coverage may mean that you do not get compensated for any type of expenses. This includes loss of wages, medical bills, loss of services, and/or any other benefits that are usually awarded under no-fault coverage.

Have you tried to apply for a no-fault insurance coverage but was denied by the insurance company? Contact us so we can help.

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