Michigan No-Fault Wage Loss Rules Revised

If you have been injured in a car accident or truck accident in Michigan and need to know how much money you will be entitled to for wage loss, the no-fault lawyers of Michigan Auto Law can help. Michigan wage loss is a no-fault insurance benefit (also called personal injury protection or PIP benefit) that auto accident victims are entitled to after a crash, which compensates you for wages lost due to your personal injuries.
The previous maximum for lost wages was $4,713 per month. As of October 1, 2009, the new statutory maximum for Michigan wage loss is $4,948 per month. In other words, if you are out of work due to debilitating injuries from a Michigan car accident, you are entitled to at most, $4,948 each month.
Based on the no-fault wage loss formula, which is 85 percent of one’s gross income tax-free, the maximum amount for wage loss equates to an estimated annual income of $70,000. So if you earn less than $70,000 per year, your income should be fully covered by no-fault wage loss benefits in the event of an auto accident.

If a Michigan Auto Accident Victim Earns More Than $70,000 Per Year…

If you earn more than $70,000 per year, anything you are owed over the statutory maximum is considered “excess wage loss” and is recoverable from the auto insurance policy of the person who caused the car accident.
Keep in mind that excess wage loss, which is an economic loss, is subject to pure-comparative negligence. This means you can recover your wage loss on a pro-rata basis, depending on the percentage of liability between the parties. For example, if you were 75 percent at-fault for the crash and the other party was 25 percent at-fault, you could recover up to 25 percent of your excess wage loss from the wrongdoer’s insurance policy.
If both parties were 50 percent at-fault, you can recover up to 50 percent of your excess wage loss. Obviously, if you are 100 percent responsible for the car or truck accident, there would be no recovery for excess wage loss.

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Your Rights Under Michigan No Fault Law

If you have been in an auto accident in Michigan, you may be wondering what effect Michigan's no fault insurance law has on your rights.

The purpose of this article is to provide an overview of your rights and remedies under Michigan no fault law. If you speak to a lawyer or insurance agent about your car accident claim, you may hear about your "first party" and "third party" claims. This confusing language is short-hand for whether you are making a claim for medical benefits with your own insurance company ("first party"), or if you are making a claim for pain and suffering resulting from your injuries against the driver of another car ("third party").

In seeking assistance after a car accident, it is very helpful to consult with a lawyer who is familiar with Michigan's auto accident laws. Insurance companies for people who cause accidents will attempt to avoid paying damages, and may offer inadequate settlement offers to unrepresented persons - if they make an offer at all. Your own insurance company is unlikely to fully inform you of the benefits you are entitled to receive under Michigan No Fault law, and many insurance companies have been known to deny or cut off benefits to people who are legally entitled to receive them. An experienced lawyer can help you protect your rights.

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