Michigan No-Fault Insurance Law Guide: How Bills Get Paid

Key Takeaways:

Michigan’s no-fault insurance system determines how accident-related bills are paid. Personal Injury Protection (PIP) pays many qualifying expenses without requiring you to prove another driver caused the crash, but payment depends on the policy’s benefit limits and Michigan’s priority rules.
Michigan law follows a statutory order of priority that determines which insurer is responsible for paying medical bills, wage loss benefits, and other no-fault payments.
Depending on your policy and eligibility, benefits may include wage loss payments, replacement services, survivor’s loss benefits, and funeral expenses.
Health care providers submit bills and medical records to the responsible insurer, which reviews the claim before approving, partially paying, or denying payment.
Vehicle repairs, pain and suffering, certain property damage claims, and charges exceeding your PIP benefit limit may require another insurance claim or a lawsuit against the at-fault driver.
Filing claims on time, maintaining complete medical records, and responding to insurer requests can help avoid delays, and legal action may be available when benefits are improperly denied.

After a Michigan car accident, one of your first questions may be, “Who’s paying my medical bills?” Under Michigan’s no-fault insurance law, payment for accident-related medical treatment usually begins through the applicable Personal Injury Protection (PIP) insurer instead of the driver who caused the crash. That approach differs from the liability systems used in many other states. Michigan law also allows drivers to select from several PIP medical coverage levels, which can affect how accident-related medical expenses are paid.

At LegalGenius, we help injured clients determine which insurer is responsible for paying no-fault benefits after a motor vehicle accident. In this guide, you’ll learn how PIP benefits pay for medical treatment, wage loss, replacement services, and other eligible expenses. You’ll also learn how priority rules work, what happens when available PIP benefits are exhausted, and when you may have the right to seek compensation from an at-fault driver.

What Is Michigan’s No-Fault Insurance System?

Michigan’s no-fault insurance system requires drivers to carry auto insurance that pays qualifying expenses after a motor vehicle crash without first proving another driver caused the collision. Instead of waiting for a liability claim to be resolved, the insurer with priority under state law pays qualifying medical expenses, wage loss benefits, replacement services, and other payments authorized by the No-Fault Act. This system lets injured people receive financial assistance while questions about legal responsibility are handled separately.

Michigan’s no-fault law changed substantially in 2019. Before those amendments, every auto policy included unlimited lifetime Personal Injury Protection, or PIP, medical benefits. Today, many drivers may choose from several PIP medical coverage levels if they meet the legal requirements. As a result, the amount available for accident-related medical care depends on the coverage selected when the policy was issued.

The Purpose of No-Fault Insurance

Michigan adopted its no-fault system to provide prompt payment for medical care and other economic losses after a motor vehicle crash. Instead of filing a lawsuit before receiving payment, injured people submit qualifying claims to the insurer responsible under Michigan’s priority rules. Medical providers can then bill that insurer directly for approved treatment, helping injured people receive care while liability issues are addressed separately.

Although fault isn’t required to receive PIP benefits, it still plays a role in some claims. A lawsuit against the driver who caused the crash follows different legal standards than a claim for no-fault benefits. That distinction is one of the defining features of Michigan’s auto insurance system.

Every Driver Must Carry Required Auto Insurance

Michigan law requires owners of registered motor vehicles to maintain certain types of insurance coverage.

Personal Injury Protection (PIP): PIP pays qualifying medical expenses, wage loss benefits, replacement services, survivor’s loss benefits, funeral expenses, and other payments authorized under Michigan’s No-Fault Act, subject to the policy’s selected coverage level and applicable legal limits.
Property Protection Insurance (PPI): PPI pays up to $1 million for damage your vehicle causes to tangible property located in Michigan, including buildings, fences, utility poles, and properly parked vehicles, in situations recognized by state law.
Residual Liability Insurance: Residual liability coverage pays damages if you’re legally responsible for injuries or property damage in situations where Michigan law permits a liability claim against you.

Fault Still Matters in Some Cases

Michigan’s no-fault law doesn’t prevent all lawsuits arising from a motor vehicle crash. A person who suffers a serious impairment of body function, permanent serious disfigurement, or death may have the right to file a claim against the at-fault driver for noneconomic damages, including pain and suffering.

Fault may also affect claims involving property damage that falls outside available no-fault property protection benefits. Because no-fault claims and liability lawsuits follow different legal rules, identifying the type of claim involved helps determine which compensation may be available.

What Does Personal Injury Protection (PIP) Cover?

Personal Injury Protection pays many of the financial losses that follow a Michigan motor vehicle crash. Depending on the medical coverage level selected under the auto insurance policy, these payments may include:

Medical care
Lost income
Replacement services
Survivor’s loss payments
Funeral expenses
Other items authorized by Michigan’s No-Fault Act

Insurers review each claim to determine if the requested payment satisfies the requirements established by state law and the terms of the policy.

Medical treatment is the largest category of PIP payments, but it isn’t the only one. The law also provides financial assistance when injuries prevent you from working, performing household responsibilities, or supporting family members after a fatal crash.

Medical Expenses

PIP pays allowable charges for reasonably necessary products, services, and accommodations related to the care, recovery, or rehabilitation of injuries sustained in a motor vehicle crash. Depending on the injuries sustained and the medical coverage available under the auto policy, payment may include:

Emergency medical transportation
Emergency room treatment
Hospital admission and inpatient care
Surgery and anesthesia
Physician and specialist appointments
Diagnostic imaging, including X-rays, CT scans, and MRIs
Laboratory testing
Prescription medications
Physical therapy
Occupational therapy
Speech therapy
Chiropractic treatment when payable under Michigan law
Psychological counseling and psychiatric treatment related to accident injuries
Prosthetic devices and orthotics
Wheelchairs, walkers, braces, and other medically necessary equipment
Home health care and attendant care
Rehabilitation programs
Follow-up medical appointments

Medical providers submit bills to the insurer responsible for paying no-fault claims. The insurer reviews the charges and supporting medical records before approving payment, requesting additional information, or denying part of the claim.

Lost Wages

If your injuries prevent you from returning to work, PIP may replace part of the income you lose during your recovery. Wage loss payments are available only when the injury keeps you from performing your job because of the crash.

State law limits both the amount payable and the maximum payment period. The monthly maximum is adjusted each year. You’ll also need documentation showing your income and the time you missed from work because of your injuries.

No-fault wage loss generally pays 85% of the income you lose because your injuries keep you from working, up to a monthly maximum set by the state and for up to three years from the date of the crash. The monthly maximum is adjusted each year for the cost of living, and the figure that applies to your claim is the one in effect on the date of your accident. For accidents occurring between October 1, 2025 and September 30, 2026, that maximum is $7,201 per 30-day period. If your earnings exceed the cap, the difference may be recoverable from an at-fault driver as excess economic loss.

Replacement Services

Some injuries prevent you from completing the household tasks you normally perform. Replacement service payments help reimburse the reasonable cost of hiring someone else to perform those responsibilities during your recovery. Examples include:

House cleaning
Laundry
Meal preparation
Grocery shopping
Lawn care
Snow removal
Child care that replaces services you normally provided
Transportation for household errands

Replacement services are generally reimbursed up to $20 per day for up to three years from the date of the crash, and only for qualifying expenses authorized under the No-Fault Act.

Survivor’s Loss Benefits

When a motor vehicle crash results in a fatal injury, surviving dependents may qualify for survivor’s loss payments. These payments may replace income and household services the deceased person would have provided to eligible dependents if the fatal injury hadn’t occurred.

Funeral and Burial Expenses

PIP also pays allowable funeral and burial expenses after a fatal motor vehicle crash, subject to the limits established by the applicable policy and Michigan law. These payments may include funeral home services, burial or cremation costs, and other qualifying final expenses.

Families should notify the responsible insurer as soon as practical after a fatal crash so eligible claims can be reviewed without unnecessary delay. If a dispute arises over payment or insurer priority, legal guidance may help protect your right to recover available no-fault payments.

Which Insurance Company Pays Your Medical Bills First?

Michigan’s no-fault system uses a statutory order of priority to determine which company pays Personal Injury Protection claims after a motor vehicle crash. Instead of submitting medical bills to the driver who caused the collision, you generally submit them to the insurance company that has priority. Identifying the correct company early helps reduce payment delays and directs medical providers to the proper source of payment.

The order of priority depends on your relationship to the available insurance coverage, your household, and the vehicle involved in the crash. While many claims follow the general priority rules, different statutory provisions apply in situations involving employer-owned vehicles, commercial vehicles, motorcycles, and other circumstances recognized under the No-Fault Act.

Your Own Auto Insurance Coverage

If you have a Michigan auto insurance policy that includes PIP coverage, your insurance company is generally responsible for paying qualifying no-fault claims first. This applies to many people injured while driving or occupying their own insured vehicle.

After the claim is reported, medical providers submit bills and supporting records to the company for review. The insurer evaluates the treatment, confirms that the charges qualify for payment, and then approves, partially pays, or denies the claim.

Your Spouse’s Auto Insurance Coverage

If you don’t have your own qualifying PIP coverage, your spouse’s auto insurance may become responsible for paying eligible claims. Eligibility depends on the terms of the coverage and the family’s living arrangements when the crash occurred. The insurance company may request documents establishing the marital relationship, proof of residency, or other records needed to determine if its coverage has priority.

A Resident Relative’s Auto Insurance Coverage

If neither your own coverage nor your spouse’s coverage applies, PIP benefits may be available through the auto insurance policy of a resident relative. Residency isn’t determined solely by the address shown on a driver’s license or other mailing records. Instead, the insurance company may review where you normally live, your household arrangements, and other evidence when deciding if resident-relative priority applies.

The Michigan Assigned Claims Plan

Some injured people don’t have access to PIP benefits through their own coverage, a spouse’s coverage, or the coverage of a resident relative. In those situations, they may qualify to seek payment through the Michigan Assigned Claims Plan.

Applicants must satisfy the legal eligibility requirements before a participating insurance company is assigned to administer the claim. Once assigned, that company handles qualifying no-fault payments in the same manner as any other responsible insurer.

Benefits available through the Assigned Claims Plan are capped at $250,000 in allowable expenses, which is lower than the unlimited or higher-tier coverage some drivers carry on their own policies.

Commercial and Employer-Owned Vehicles

Motor vehicle crashes involving commercial trucks, delivery vans, buses, rideshare vehicles, or employer-owned vehicles don’t always follow the same priority rules that apply to privately owned passenger vehicles. For example, an employee injured while occupying an employer-owned vehicle may be subject to a different priority provision than someone injured while driving a personal vehicle.

These claims may involve multiple insurance companies that disagree about which one must pay first. Resolving that issue promptly helps prevent delays in paying medical providers and other qualifying no-fault claims.

How Do Medical Bills Actually Get Paid?

After a motor vehicle crash, your health care providers don’t automatically know which insurance company is responsible for paying your bills. Before payment can be issued, the correct insurer must be identified, treatment must be documented, and billing records must be submitted for review. If information is missing or bills are sent to the wrong company, payment may be delayed, and unpaid balances can begin to accumulate.

Most no-fault medical bills move through the same sequence from treatment to a payment decision. Knowing how that sequence works can help you recognize problems early and respond before disputes become larger.

Medical Providers Submit Bills

After your no-fault case is opened, health care providers submit billing statements and supporting records to the insurer responsible for paying Personal Injury Protection (PIP) benefits. Those records typically include treatment notes, physician reports, diagnostic test results, and other documentation connecting your care to the motor vehicle crash.

Accurate billing records help establish what treatment was provided, why it was medically necessary, and when services were performed. If documentation is incomplete or inconsistent, the insurer may request more records before issuing a decision.

The Insurance Company Reviews the Submission

The insurer reviews the records to determine if the treatment qualifies under Michigan’s No-Fault Act and the terms of the auto policy. During that review, the insurer may examine:

Physician records
Hospital records
Diagnostic imaging
Itemized billing statements
Treatment plans
Documentation supporting medical necessity

If the submitted records don’t answer all of the insurer’s questions, it may ask the medical provider for more information before making a decision.

Payment, Partial Payment, or Denial

After reviewing the records, the insurer decides how much of the bill qualifies for reimbursement. If the treatment satisfies the legal and policy requirements, payment is issued for the allowable amount.

The insurer may also approve only part of the charges or deny payment altogether. Common reasons include disputes over medical necessity, questions about whether the treatment resulted from the crash, billing issues, or policy limits. If payment is denied, reviewing the insurer’s written explanation, gathering supporting records, and determining whether the decision should be challenged are the next steps.

What Happens If Your Medical Bills Exceed Your PIP Coverage?

The amount your no-fault insurer pays for accident-related health care depends on the Personal Injury Protection (PIP) limit selected under the applicable auto insurance policy. Once that limit has been reached, the no-fault insurer won’t continue paying additional accident-related treatment through PIP.

Note: Depending on your health plan, government benefits, and the type of damages involved, another source of payment may be responsible for some or all of your remaining treatment costs.

Choosing PIP Medical Benefit Limits

Michigan drivers who qualify can select from several PIP medical benefit levels when purchasing or renewing auto insurance:

Unlimited lifetime medical benefits
$500,000 in coverage
$250,000 in coverage
$50,000 in coverage, available when the named insured is enrolled in Medicaid and other household members have Medicaid or other qualifying health coverage
A PIP medical opt-out, available in limited situations when the named insured has Medicare Parts A and B and other household members have qualifying health coverage

Eligibility for the lower levels and the opt-out depends on meeting specific legal requirements. The limit selected before a crash determines the maximum the no-fault insurer will pay for accident-related medical care. Once that limit is reached, payment through PIP ends, even if further treatment is needed.

Health Insurance May Pay After PIP Is Exhausted

If your PIP benefits have been exhausted, your health insurance may begin paying eligible treatment costs if your plan provides those benefits. Medicare, Medicaid, and other government health programs may also pay qualifying expenses for eligible recipients.

Each health plan has its own rules regarding deductibles, copayments, provider networks, prior authorization, and eligible services. Reviewing those requirements before treatment continues can help you understand which expenses the plan may pay after PIP ends.

Out-of-Pocket Medical Expenses

You may still be responsible for some treatment costs after no-fault and health insurance have paid all eligible claims. The amount you owe depends on the limits of your insurance, your health plan, and any unpaid charges that remain after available benefits have been applied.

Health care providers may also bill you directly for charges that aren’t paid through no-fault insurance or another health plan. Reviewing explanations of benefits and provider invoices can help you identify unpaid charges or billing errors that should be corrected.

Filing a Lawsuit Against the At-Fault Driver

If your injuries satisfy the state’s legal threshold, you may pursue a claim against the at-fault driver for noneconomic damages, including pain and suffering. In some situations, you may also seek compensation for economic losses that aren’t payable through no-fault benefits.

Note: These lawsuits follow different legal standards than claims for PIP benefits. Instead of determining eligibility for no-fault payments, the court considers issues such as liability, the damages being requested, and the evidence supporting those claims.

What Bills Are Not Automatically Paid Under No-Fault Insurance?

Personal Injury Protection (PIP) is limited to the types of expenses authorized by the No-Fault Act and the benefit limit selected under the policy. If an expense falls outside those rules, payment may come through another insurance policy or, in some situations, a liability claim against the at-fault driver.

Vehicle Repairs: PIP doesn’t pay to repair or replace your vehicle after a crash. Those claims follow different insurance rules and may be paid through collision coverage, a mini-tort claim, or another property damage claim, depending on the type of loss and the insurance available.
Pain and Suffering: PIP doesn’t compensate you for pain and suffering, emotional distress, loss of enjoyment of life, or other noneconomic damages. Those damages may be recovered only through a liability claim against the at-fault driver if your injuries satisfy Michigan’s legal threshold for bringing that type of lawsuit.
Property Damage Outside PPI: Michigan’s Property Protection Insurance (PPI) pays for damage your vehicle causes to certain types of tangible property located in Michigan. It doesn’t pay every property damage claim arising from a motor vehicle crash. Some losses must be addressed through another insurance policy or a separate legal claim.
Medical Treatment That Doesn’t Qualify for PIP Payment: An insurer may deny payment if the treatment isn’t medically necessary, isn’t related to injuries from the crash, or doesn’t qualify under the law. If payment is denied, reviewing the insurer’s written explanation and the supporting medical records can help determine whether the decision should be challenged.
Charges That Exceed Your PIP Benefit Limit: Once your selected PIP medical benefit limit has been exhausted, the no-fault insurer won’t pay further accident-related treatment through that portion of the policy. Any remaining bills may become the responsibility of your health insurance, another insurer, or you. In some cases, you may pursue compensation from the at-fault driver for losses that fall outside the no-fault system.

How Long Do You Have to File a No-Fault Claim?

Michigan law places strict time limits on no-fault claims, and missing them can bar payment for benefits you would otherwise be entitled to receive. Two separate one-year rules apply, and they work differently.

The One-Year Notice Rule

You generally must notify the responsible insurer of your claim within one year of the date of the accident. If no notice is given and no PIP payment has been made within that first year, a later claim may be barred.

The One-Year-Back Rule

Even after a claim is properly opened, you generally cannot recover benefits for any expense incurred more than one year before a lawsuit is filed. In practice, each medical bill, wage-loss period, attendant-care log, and replacement-service claim is treated as its own expense with its own running clock.

Michigan’s 2019 no-fault amendments added a provision that can pause, or “toll,” this one-year-back period. When you submit a specific claim for payment, the clock on that claim may be paused until the insurer formally denies it in writing. Vague explanations, partial payments, or silence from the insurer generally do not restart the clock. Because these rules are technical and apply expense by expense, reviewing your deadlines with a Michigan no-fault lawyer early can help protect benefits that might otherwise be lost.

When Should You Speak With a Michigan No-Fault Insurance Lawyer?

Many no-fault claims are resolved without litigation, but some become disputed after medical bills are denied, wage loss payments stop, or multiple insurance companies disagree about who has priority. When those issues arise, speaking with a Michigan no-fault insurance lawyer can help you evaluate your rights and determine the next course of action.

Your Medical Bills Aren’t Being Paid: If health care providers continue sending unpaid bills after your no-fault claim has been reported, the insurer may be disputing responsibility, requesting additional documentation, or denying payment. A lawyer can evaluate the insurer’s position and determine whether legal action is appropriate.
Your Wage Loss Benefits Have Been Denied or Stopped: Wage loss payments are an important source of financial support for many injured people who can’t return to work after a crash. If those payments stop unexpectedly or are denied, reviewing the insurer’s stated reason can help determine whether additional evidence or legal action may be necessary.
Multiple Insurance Companies Disagree About Priority: Priority disputes can occur when more than one insurance company may be responsible for paying no-fault benefits. These disagreements sometimes involve your own policy, a spouse’s policy, a resident relative’s policy, an employer’s policy, or the Michigan Assigned Claims Plan.
You Suffered Catastrophic Injuries: Catastrophic injuries, including traumatic brain injuries, spinal cord injuries, severe burns, and amputations, frequently require long-term medical care, rehabilitation, attendant care, and substantial financial resources. These claims may involve large medical expenses, multiple health care providers, life care planning, and disagreements over future treatment.
A Family Member Died in the Crash: A fatal motor vehicle crash may give surviving family members the right to pursue survivor’s loss benefits, funeral expense payments, and, in some situations, a wrongful death claim against the at-fault driver.

Speak to a Michigan No-Fault Insurance Lawyer Now

After a motor vehicle crash, the steps you take early can shape your entire claim. Medical records need to be gathered, the insurer with priority has to be identified, and Michigan’s one-year filing deadlines keep running from the date of the accident. The sooner an attorney gets involved, the sooner your claim can be documented correctly, benefits can be pursued, and disputes over payment or priority can be addressed before they delay your care.

LegalGenius represents injured people and families throughout Michigan in no-fault insurance disputes and motor vehicle accident claims. If your medical bills remain unpaid, your benefits have been denied, or an insurance company disputes responsibility for your claim, we can help. For more information or to schedule a free consultation, call 800-209-4000 or fill out our Ask the Genius™ form, and an attorney will contact you within five minutes.

Frequently Asked Questions About Michigan No-Fault Insurance Law

How Long Do No-Fault Benefits Last in Michigan?

It depends.

Medical benefits continue until the applicable Personal Injury Protection (PIP) medical benefit limit has been reached.
Wage loss payments are available for up to three years after the date of the crash, subject to the statutory monthly maximum and other legal requirements.

Replacement service payments are also subject to statutory limits. Because each category has its own rules, it’s important to review your policy and the applicable law to determine how long a particular benefit may continue.

Can My Health Insurance Pay Before No-Fault Insurance?

In most situations, no-fault benefits are the primary source of payment for accident-related treatment when PIP coverage applies. After the available PIP medical benefit limit has been exhausted, your health insurance may begin paying eligible expenses if your health plan provides those benefits. Medicare, Medicaid, and other government health programs may also pay qualifying treatment for eligible recipients.

The order in which insurance applies depends on Michigan’s priority rules, the type of health plan you have, and the terms of your insurance coverage. Reviewing both your auto policy and your health plan can help you determine which insurer is responsible for payment at each stage of your claim.

Sources

Attorney Jeffrey Perlman

Attorney Jeffrey Perlamn is the managing partner at LegalGenius, PLLC. He has helped Metro Detroit accident victims recover the compensation they deserve for over 35 years. He believes everyone should have access to justice and the legal system, which is why Attorney Perlman spends his time outside of the courtroom writing informational blogs on the LegalGenius website that are accessible to all.

← Previous Post