When you’re involved in a car accident in Michigan, the first question many drivers ask is: Who pays for my damages? Michigan operates under a no-fault insurance system, meaning you typically turn to your own insurance company for certain benefits, regardless of who caused the crash. This is known as first-party auto insurance.
First-party coverage is broader than just medical bills. It also includes vehicle damage coverage, uninsured/underinsured motorist protection, and other key benefits that protect you financially after an accident. However, insurance companies don’t always make the claims process easy….delays, lowball settlements, and wrongful denials are common.
This guide breaks down how first-party insurance works in Michigan, what’s covered, and how to protect your right to compensation. If you’re facing a claim denial or dispute, a Michigan auto insurance lawyer can help you fight for the benefits you deserve.
What Is First-Party Auto Insurance in Michigan?
First-party auto insurance is the coverage you purchase for yourself, designed to pay for your own losses after a car accident, regardless of fault. Under Michigan’s no-fault system, this type of insurance ensures that drivers receive essential benefits without needing to sue the at-fault driver in most cases. First-party coverage includes:
Unlike third-party claims, which involve suing another driver, first-party insurance is designed to provide faster access to benefits—but that doesn’t mean insurance companies always pay fairly. Understanding your policy and your rights is crucial to securing the full compensation you’re owed.
Types of First-Party Auto Insurance Coverage
First-party auto insurance includes several types of coverage designed to protect you and your property after a car accident—regardless of fault. The table below outlines the key components of first-party coverage and what each type protects.
Not all drivers carry the same level of first-party auto insurance coverage and the type of protection you have depends on your policy choices. Michigan law requires drivers to carry Personal Injury Protection (PIP) for medical expenses and lost wages as well as Property Protection Insurance (PPI) to cover damage your vehicle causes to stationary property. However, other types of coverage like collision, comprehensive, uninsured motorist (UM), and underinsured motorist (UIM) coverage are optional and vary by policy.
Many drivers assume their insurance will cover all accident-related expenses but without collision or UM/UIM coverage, you could be left paying out-of-pocket for vehicle repairs or injuries caused by an uninsured or underinsured driver. Reviewing your policy details and understanding what’s covered under first-party insurance can help ensure you’re fully protected in case of an accident.
Who Pays for Damages After a Michigan Car Accident?
Michigan’s no-fault insurance system determines who pays for accident-related expenses based on the type of damages incurred. In many cases, your own first-party auto insurance covers certain losses, while third-party claims may be necessary if the other driver was at fault, you suffered a serious injury, and your damages exceed no-fault coverage limits. Below is a table outlining who pays for what under Michigan’s first-party and third-party insurance system.
Understanding whether your insurance or the at-fault driver’s insurance is responsible for covering accident-related damages is crucial when filing claims. While first-party benefits handle immediate expenses, serious injuries or high-value losses may require third-party claims to recover full compensation.
How Michigan’s No-Fault Law Affects First-Party Coverage
Michigan’s no-fault insurance law is designed to ensure that accident victims receive compensation for medical expenses, lost wages, and essential services regardless of who caused the accident. However, this law also impacts what your first-party auto insurance covers and the limitations on claims. Here are the key ways that no-fault law affects first party coverage:
Understanding how no-fault rules impact first-party claims can help you maximize your insurance benefits and determine whether additional legal action is necessary. If your medical bills exceed your PIP limits or you’ve suffered a serious injury, you may need to pursue a third-party claim against the at-fault driver.
When to File a First-Party Insurance Claim
Filing a first-party insurance claim is necessary in many situations, especially when your own insurance policy is responsible for covering your losses under Michigan’s no-fault system. Unlike a third-party claim which is filed against the at-fault driver’s insurance, a first-party claim ensures you receive compensation directly from your own insurer. These are some common situations where you should file a first-party claim:
Filing a first-party claim ensures that you receive immediate benefits without waiting for a liability dispute to be resolved. However, insurance companies often try to minimize payouts—so it’s essential to document your damages, understand your rights, and seek legal help if your claim is delayed or denied.
Common Issues with First-Party Insurance Claims & How to Dispute Denials
Filing a first-party insurance claim should provide fast access to benefits, but insurance companies don’t always make the process easy. Delays, denials, and underpayments are common, leaving accident victims struggling to cover medical bills and other expenses. Below is a table outlining common reasons first-party claims get denied and how to challenge the denial effectively.
If your first-party claim is delayed or denied, don’t accept the insurance company’s decision without a fight. You have the right to appeal denials, provide additional evidence, and take legal action if necessary to recover the benefits you’re owed.
Frequently Asked Questions About First-Party Auto Insurance in Michigan
Contact a Michigan Auto Insurance Lawyer Today
Dealing with first-party insurance claims can be overwhelming especially when insurers delay, deny, or underpay your benefits. You pay for coverage to protect yourself after an accident, and you deserve fair treatment from your insurance company. At The Clark Law Office, we fight for accident victims who are struggling to recover the benefits they rightfully deserve. Unlike large firms that treat you like a case number, we provide personalized attention and aggressive legal representation to ensure you get the compensation you need. If your first-party insurance claim has been denied, delayed, or undervalued, don’t fight the insurance company alone. Call us today for a free consultation, and let’s discuss how we can protect your rights.
See how first-party benefits fit into broader no-fault coverage in our insurance and no-fault guide.