MAKING SMART CHOICES: A SUMMARY GUIDE TO THE NEW AUTO NO-FAULT LAW

By George T. Sinas • Stephen H. Sinas • Thomas G. Sinas: For More Info, Go Here…

The Michigan Auto No-Fault Law (MCL 500.3101, et seq) originally went into effect
in October 1973. It was the only law of its kind in the country and was thought by
many to be a model system for motor vehicle injury cases. When the law was first
adopted, it guaranteed to all motor vehicle accident victims, lifetime, uncapped
medical and rehabilitation expense coverage regardless of who was at fault for an
accident.

In addition, the no-fault law provided that, in most cases, no one could be
sued in tort for the medical expenses suffered by another, because those expenses
were already covered by the injured person’s no-fault insurance. For the most part,
the only tort liability at-fault drivers had under the original no-fault law was the
payment of “non-economic damages” suffered by seriously injured victims.

In May 2019, major changes to the Michigan Auto No-Fault Law were adopted by
the Michigan Legislature, many of which went into effect in June 2019 (PA 21 2019).
The most significant changes, however, go into effect in July 2020, and those changes
will significantly impact virtually all Michigan consumers.

Under the new law, people no longer have guaranteed lifetime coverage for medical
and rehabilitation expenses, unless they specifically purchase that coverage.
Moreover, all drivers will face increased liability in certain situations for the medical
expenses they caused others to incur. Therefore, in order to protect against the
decreased coverage for a victim’s medical expenses and the increased tort liability
exposure for the medical expenses of others, beginning in July 2020, every Michigan
motorist will be required to make critically important choices about how best to
protect themselves and their families.

Therefore, in an effort to educate Michigan consumers about these new laws, the Sinas Dramis Law Firm has prepared this summary in the hope that it will provide Michigan citizens with useful information that will enable them to MAKE SMART CHOICES.

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