Michigan Assigned Claims Plan: What It Is and How It Works

When no auto insurance is available after a car accident, injured victims in Michigan may still have one option for coverage through the Michigan Assigned Claims Plan.

This program serves as a last resort within the no-fault system, allowing certain individuals to recover benefits even when no applicable insurance policy exists. However, the process is not straightforward. Recent changes to Michigan law have limited medical coverage to $250,000 in most cases and added stricter requirements for filing and proving a claim.

Understanding how the Assigned Claims Plan works, who qualifies, and what limitations apply is critical if you are relying on it after a crash.

What Is the Michigan Assigned Claims Plan?

The Michigan Assigned Claims Plan is a last-resort system that provides no-fault benefits when no auto insurance coverage is available after a car accident.

In most cases, Michigan’s no-fault law requires an insurance policy to pay for medical expenses, lost wages, and other benefits after a crash. But if there is no applicable policy, or if insurance companies dispute who is responsible, the Assigned Claims Plan steps in to make sure an injured person still has access to coverage.

The program is administered by the Michigan Automobile Insurance Placement Facility, which assigns your claim to an insurance company. That company then handles the claim and pays benefits as if it were your own insurer, subject to the limits and requirements set by Michigan law.

Because the Assigned Claims Plan is designed as a safety net, it only applies in specific situations and comes with important limitations, including strict eligibility rules and caps on available benefits.

When Does the Assigned Claims Plan Apply?

The Michigan Assigned Claims Plan only applies when there is no other auto insurance available to provide no-fault benefits after a car accident.

In most situations, Michigan law requires an insurance policy to cover your injuries. This could be your own policy, a spouse’s policy, or a policy held by someone in your household. The Assigned Claims Plan is only used when none of these options exist or when there is a dispute about which insurance company is responsible.

Common situations where the Assigned Claims Plan may apply include:

However, the Assigned Claims Plan does not apply in every situation involving a lack of insurance. For example, if you were driving your own uninsured vehicle, you may be barred from receiving no-fault benefits under Michigan law.

Because eligibility depends on how Michigan’s priority rules apply to your specific situation, determining whether the Assigned Claims Plan applies is not always straightforward.

How Do You Apply for the Assigned Claims Plan?

To apply for benefits through the Michigan Assigned Claims Plan, you must complete an official application through the Michigan Automobile Insurance Placement Facility.

The application requires detailed information about the accident, your injuries, and any possible sources of insurance coverage. Because the Assigned Claims Plan is a last resort, you must show that no higher-priority insurance policy applies to your claim.

Under Michigan law, an applicant must also provide “reasonable proof of loss” to support the claim. This may include medical records, wage loss documentation, and other evidence showing the extent of your injuries and damages. (MCL 500.3172(3))

Within 60 days of receiving your application, the Assigned Claims Plan or the assigned insurance company must notify you in writing of any additional materials needed to process your claim. (MCL 500.3172(3))

If your claim is accepted, it will be assigned to an insurance company, which will then handle the claim and begin evaluating and paying benefits under Michigan’s no-fault system.

Because the application process is strict, incomplete or inaccurate information can delay your claim or result in a denial. Careful preparation and thorough documentation are essential when applying.

How Long Do You Have to File a MACP Claim?

Under Michigan law, you must file your application for benefits through the Michigan Assigned Claims Plan within one year of the date of the accident. (MCL 500.3174)

This deadline is strictly enforced, and failing to file within one year may bar you from recovering no-fault benefits.

What Benefits Does the Assigned Claims Plan Cover?

If your claim is accepted, the Michigan Assigned Claims Plan provides basic no-fault benefits under Michigan law.

These benefits may include:

Will the Assigned Claims Plan Cover Your Medical Bills?

Medical bills after a car accident in Michigan are covered under the no-fault benefits provided by the insurance company assigned to your claim through the Michigan Assigned Claims Plan.

However, medical benefits coverage is capped at $250,000 in most cases. (MCL 500.3172(7)(a))

If your accident-related medical expenses exceed that amount, you may need to rely on other sources of coverage, such as private health insurance, Medicaid, or Medicare. You may also have the right to pursue the at-fault driver for medical expenses beyond the $250,000 limit.

What Happens After Your Claim Is Filed?

After you submit your application, the Michigan Assigned Claims Plan will review your claim to determine whether you are eligible for benefits.

Within 60 days, the plan or the assigned insurance company may request additional information to verify your claim. This can include medical records, wage documentation, and other proof of your losses. (MCL 500.3172(3))

If your claim is approved, it will be assigned to an insurance company. That company will then take over handling your claim, including reviewing medical bills, evaluating benefits, and making payments under Michigan’s no-fault system.

If additional information is needed or there are questions about eligibility, the process may take longer. Delays often occur when documentation is incomplete or when there are disputes about available insurance coverage.

Can Your Claim Be Denied or Cut Off?

The Michigan Assigned Claims Plan can deny your claim for no-fault benefits if it determines that you are not eligible. (MCL 500.3173a(1))

It can also suspend benefits if you fail to cooperate with the Michigan Automobile Insurance Placement Facility or the insurance company handling your claim. (MCL 500.3173a(1))

What Situations Typically Involve the Assigned Claims Plan?

The Michigan Assigned Claims Plan is most commonly used in situations where an injured person has no available auto insurance coverage under Michigan’s no-fault priority rules.

One common example involves pedestrians. If a pedestrian who does not own a vehicle and does not live with an insured household member is struck by a hit-and-run driver or an uninsured vehicle, there may be no available PIP coverage. In that situation, the injured person can apply for benefits through the Michigan Assigned Claims Plan.

Another situation involves disputes between insurance companies over which one is responsible for paying no-fault benefits. While that dispute is being resolved, an injured person may file a claim through the Assigned Claims Plan to avoid delays in receiving coverage. The plan will assign an insurance company to handle the claim, and that company may later seek reimbursement from the insurer ultimately found to be responsible.

In these situations, the Assigned Claims Plan functions as the insurer of last resort when no other source of no-fault coverage applies.

Frequently Asked Questions About the Michigan Assigned Claims Plan