confusing. Two important terms you need to know are:
First-Party Benefits
Third-Party Benefits
Michigan is a “No-Fault Insurance” state. This means that your own auto insurance company pays most of your economic damages resulting from a Michigan car accident, whether or not you were at fault. These economic benefits are called First-Party Benefits.
At the same time, Third-Party Benefits usually cover non-economic losses, including damages for pain and suffering for injuries you suffered from a Michigan car accident. Both of these types of benefits are described in detail below.
Michigan First-Party Basics
The Michigan law defining First-Party Benefits states:
First-Party Benefits are payable to anyone who suffers an injury arising out of the ownership, operation, maintenance or use of a motor vehicle as a motor vehicle.
The following analysis looks at:
Who has to pay your Michigan No-Fault Benefits?
What are the specific benefits you may be entitled to receive?
Michigan First-Party Order of Priority
Although your own auto insurance is first in line to pay in a Michigan car accident, there are times when an uninsured individual is an innocent passenger in a motor vehicle. In these circumstances, determining who is responsible to pay Michigan No-Fault Benefits can be complicated. If you have questions about how these complex rules apply to you, contact an experienced Michigan car accident lawyer. Please submit a simple, free and confidential legal consultation form about your car accident claim to get help now.
Driver or Passenger Order of Priority for Payment of First-Party Benefits
1st priority is your own insurance policy, if none then...
2nd priority is the insurance company of a resident relative (i.e. spouse, parent, or sibling), if none then...
3rd priority is the insurer of the owner of the vehicle occupied, if none then...
4th priority is the insurer of the driver of the vehicle occupied, if none then...
5th priority is the State of Michigan Assigned Claims Facility.
Pedestrian Order of Priority for Payment of First-Party Benefits
1st priority is your own insurance, if none then...
2nd priority is the insurance company of a resident relative (i.e. spouse, parent, or sibling), if none then...
3rd priority is the insurer of the owner of the motor vehicle involved in the accident, if none then...
4th priority is the insurer of the driver of the vehicle involved in the accident, if none then...
5th priority is the State of Michigan Assigned Claims Facility.
Motorcycle Order of Priority for Payment of First-Party Benefits
There is a different order for benefit payments, if you were on a motorcycle when the car accident happened, because a motorcycle is not considered a “motor vehicle” under Michigan law. In a Michigan motorcycle/automobile collision, the priority would be:
1st priority is the insurer of the owner of the car involved in the accident, if none then...
2nd priority is the insurer of the driver of the car involved in the accident, if none then...
3rd priority is the motor vehicle insurer of the driver of the motorcycle involved in the accident, if none then...
4th priority is the motor vehicle insurer of the owner of the motorcycle involved in the accident, if none then...
5th priority is the State of Michigan Assigned Claims Facility.
The Michigan Assigned Claims Facility
