Automobile No-Fault Insurance Law

When you are involved in an automobile accident, generally, you are entitled to certain benefits under the Michigan No-Fault Insurance Law, regardless of fault. Your basic No-Fault benefits potentially available to you include coverage for allowable expenses, wage loss, replacement services and survivor's loss. Your auto insurance company is required to pay those benefits that you are entitled to within thirty (30) days from when it receives reasonable proof of the fact and amount of the loss (e.g., when it receives copies of your medical records from your treating physician(s) substantiating your claim). Typically, however, confusion arises when allowable expenses and replacement service claims are unknowingly commingled together resulting in you recovering less than what you should properly be reimbursed by your auto-insurer.

Under the No-Fault Law, allowable expenses recoverable include all necessary medical care for your rehabilitation and recovery from injuries caused by the auto accident, which are covered and paid for life. One example of an allowable expense is the assistance with daily living performed by a nurse or a family member; this is labeled Attendant Care. It involves providing nursing type care like assistance with transition to and from the bed, the bathroom and the automobile; it also involves the cleaning and dressing of wounds, the administration of medication and assistance with physical therapy exercises. Attendant care is compensated/reimbursed at an hourly rate (between $7.00 and $18.00 depending on training and experience) multiplied by the actual hours of care provided which, depending on the facts of the individual case, can be a significant benefit recovered for you.

Also under the No-Fault Law, you are entitled to reimbursement up to $20.00 a day for up to three (3) years from the date of the accident for reasonably incurred expenses for ordinary household services performed by family or friends that you traditionally performed but now cannot because of your injuries. This benefit is labeled as Replacement Services. Examples of replacement services include mowing the lawn, taking out the garbage, doing the dishes and folding the laundry. Notice that these type of services are significantly distinguishable from Attendant Care.

Unfortunately, as is typically the case, injured auto-claimants are not reasonably informed of this critical distinction and unintentionally make claims for Attendant Care under the heading of Replacement Services which, obviously, greatly reduces an otherwise significant benefit claim. Although your auto-insurer should inform you of this distinction, they typically do not for obvious reasons. Therefore, it is imperative that you distinguish your claims for Attendant Care and Replacement Services so that your benefits are fully and completely paid.

Most auto-insurers have pre-printed forms that you can use to record the information necessary for them to document the reasonable proof to support your claims. Regardless, it is recommended that you keep a detailed diary or log for each type of service, identifying the name of the provider, the type of service (Attendant Care vs. Replacement Services) and for attendant care, the rate of pay and the hours worked. These diaries/logs should be submitted to the auto-insurer, on a monthly basis, as reasonable proof of the fact and amount of the loss incurred.

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