While purchasing uninsured motorist coverage is optional, it’s something our Michigan auto accident attorneys highly recommend. Uninsured motorist coverage takes care of people injured in accidents with vehicles that aren’t covered by a no-fault auto insurance policy. Typically, the injured person first turns to their own auto insurance policy for the payment of no-fault benefits. Sometimes, however, there are instances they would file a claim against the other driver’s policy.
But what happens when there isn’t another policy? What happens when there’s a car accident and no insurance provider to turn to at all? With roughly 21% of Michigan motorists driving uninsured, this happens more often than you’d think. This is where the Michigan Assigned Claims Plan steps in.
Update: Auto No-Fault Reform Changes the Michigan Assigned Claims Plan
With Michigan’s auto no-fault law experiencing significant changes in 2019, the Michigan Assigned Claims Plan, and how to handle those who are in a car accident without insurance, will also significantly change. Tom Sinas, Grand Rapids auto accident litigator, explains more.
After the 2019 overhaul, a much larger number of people will be forced into the Assigned Claims Plan. In the past, if a person was in a crash without insurance as a passenger, for example, they could turn to the driver of the vehicle they were riding in and obtain no-fault benefits through that driver’s own auto no-fault policy. That is no longer the case. Now, people in this type of situation must turn to the Michigan Assigned Claims Plan. In addition, for the first time in Michigan history, the Assigned Claims Plan is limited to $250,000 in medical care as a result of the no-fault overhaul. Many uninsured, injured people will turn to the Assigned Claims Plan and obtain capped no-fault benefits which will likely be woefully insufficient. Furthermore, under the new law, the injured party can then sue the at-fault driver of their accident for excess medical expenses not covered by the MACP.
Pre-June 2019 MACP
Michigan Assigned Claims Plan
Under MCL 500.3172, a person who is injured in a Michigan car accident may collect no-fault benefits from the Michigan Assigned Claims Plan when no other auto insurance policies apply. Also known as the “insurer of last resort,” the Michigan Assigned Claims Plan allows qualified individuals to receive no-fault benefits when there otherwise would be nowhere to turn. The benefits payable by MACP are the same as the benefits from a no-fault provider, which include:
- Medical care for auto accident-related injuries
- Up to three years of lost wages
- Up to three years of replacement services
Future of No-Fault and MACP
With the future of Michigan’s no-fault system up for debate, it’s important to understand what benefits it currently provides and what is at stake. The proposed future MACP may limit benefits for injured parties and exclude others altogether.