As noted by the Michigan insurance regulator, the MI DLEG, the Personal Injury Protection (PIP) part of your no-fault auto insurance coverage covers you if you are hurt in an auto accident. This part of your no-fault policy will pay all of your medical costs. It will also pay up to 85% of the income you would have earned if you had not been hurt, for up to three years.

However, the amount that you would be paid for lost income is limited and the limit is revised annually. Effective 10/1/08, the maximum is $4,948 per month. If you are killed in an accident, your policy will pay your family up to $4,948 per month for three years, depending upon what they would have received from your earnings and fringe benefits. In addition, you are entitled to $20 per day in replacement services. This is to pay for services which injured persons are no longer able to provide for themselves or their families, such as housekeeping and yard work.

In MI you may coordinate PIP coverage with any health or disability policy you have (except Medicaid, Medicare or a Medicare supplemental policy) to reduce your PIP premium. The health or disability plan then becomes the primary payer for medical or wage loss expenses, and the auto policy would cover remaining medical or wage loss expenses. These auto insurance coverages are also called excess medical and excess wage loss.

In exchange for no-fault benefits, Michigan motorists give up the right to sue in auto accidents except when someone is killed or very seriously injured. So if you are considered seriously injured by MI standards you may be able to go against the at-fault party's Bodily Injury Liability coverages.

In Michigan when you are injured in the auto accident you may sue that at-fault driver for certain damages such as pain and suffering, as long as your injuries meet the threshold requirement of death, permanent serious disfigurement, or serious impairment of body function. You then could also sue for any economic losses resulting from the auto accident that exceed the statutory no-fault maximum amount. Your agent should be able to give you information on the MI definitions of serious injuries and if you fall under this category so that you could go after the other party for things such as pain and suffering which you cannot get from your own PIP coverages.

Your Michigan First-Party No-Fault Benefits that you should be entitled to from your own insurance company should be listed in your policy if you read through it. Your agent then can answer any other questions you have since he or she knows the specifics of your policy. If your agent is unable to answer all of your questions, contact the Michigan insurance regulator toll free at 1-877-999-6442.