While purchasing optional uninsured motorist coverage protects those involved in an accident with an uninsured vehicle, what happens if neither car is insured? Grand Rapids auto accident attorney, Tom Sinas, explains how people in this category are taken care of through Michigan’s Assigned Claims Plan in this week’s segment of Know the Law.
Basics of the Michigan No-Fault System
The Assigned Claims Plan is something most people don’t know about, but it’s important to understand because it’s essentially the bedrock of the Michigan no-fault system. The basics of the no-fault system is, if you’re injured in an accident and not disqualified from receiving no-fault benefits, then you are eligible to receive no-fault benefits, regardless of which driver is at fault for the accident.
No-fault benefits include, lifetime medical care for auto-related injuries, three years lost wages, and three years of replacement services.
Who Pays No-Fault Benefits?
So then the question becomes, “where do I go to get these benefits?” In most cases, the injured party goes to their own no-fault insurance provider for these benefits. However, in some cases, they would turn to the no-fault provider that insures the other vehicle involved in the accident. Motorcyclists are a good example of when this second scenario happens.
However, every once in a while, there are situations where the injured person is not disqualified from benefits, but there’s no no-fault insurance provider via the vehicles involved. Where do these people go for these benefits?
Michigan’s Assigned Claims Plan
Some people refer to this plan as the “insurer of last resort.” This term doesn’t mean to diminish it, but it’s where you turn to have your claim assigned to an insurance company when one isn’t directly involved. Once it’s assigned, the insurance company that receives your claim is responsible for paying these benefits. It’s important to note that you must give notice to Michigan’s Assigned Claims plan within one year of your accident. If not, you lose your ability to pursue your claim here.
Future of Michigan’s Assigned Claims Plan
It’s important to understand how this plan currently works, because no-fault is a topic of debate in Michigan, one which will continue to increase in the future. Michigan Legislature is attempting to modify how the Assign Claims Plan works by limiting benefits or making certain people ineligible.
For more information, visit sinasdramis.com.