First-Party Claim and Benefits in Michigan
A first-party claim is different from a basic insurance claim following an auto accident. If you were involved in this unfortunate situation, which led to property damage or your pain and suffering, then you may file for a first-party claim to receive compensation. However, insurance companies will not immediately fork the cash to shoulder the cost of your medical bills and other expenses related to your claim. They will have to carefully investigate your case and then give you an offer of what its insurance adjusters have decided as the right compensation for the damage or loss. Sometimes, however, their offer may not match your expectations or what you justly deserve.
Understanding Michigan’s No-Fault Law
Michigan has a no-fault law which precludes that every auto insurance must have a no-fault policy. It would be a violation of the law to drive a car without this coverage. The no-fault insurance coverage entitles a person to receive some benefits following a car accident under the Personal Injury Protection (PIP). This means that regardless of who caused the car accident, a person may file a first-party claim for compensation for medical expenses or potential loss of wages due to the injuries.
Scenarios for Filing First-Party Auto Claims
A first-party claim, however, will not pay for your car repairs. For this procedure, you need to file a Notice of Claim or Notice of Accident from your car insurance company. So, in what situations do first party claims apply? For instance, you were cycling when you got hit by a car, which led to some damages to your bike and injuries to your legs. Under the no-fault law’s PIP provisions, you may claim for first-party benefits even if: