Will insurance pay for lost wages after an accident in Grand Rapids, Michigan?
If an individual was involved in a car accident in Grand Rapids, MI, and they are unable to work due to the injuries they suffered, they may be entitled to recover compensation to make up for their lost wages. Compensation for lost income is often recovered from the insurance company or the driver who is responsible for causing the accident if there is a liable party. To see which option will yield the best results, a car accident victim is encouraged to consult with a Grand Rapids, MI accident lawyer.
Recovering Compensation for Lost Wages Through the Insurance Company
The State of Michigan recently revised its insurance laws which took effect on policies that were issued or renewed on or after July 1, 2020. Policies that were issued or renewed before July 1, 2020, will not be affected until it comes time for them to be renewed. According to the new insurance laws, drivers are now required to carry the following types of insurance coverages:
- Personal Injury Protection (PIP)
When it comes to PIP coverage, drivers have the option of choosing one of the following as their medical limit:
- Unlimited coverage
- $500,000 per person per accident
- $250,000 per person per accident
- $250,000 per person per accident with exclusions
- $50,000 per person per accident
- No PIP medical coverage
It is worth noting that some of the options listed above do have certain eligibility criteria that must be met. In addition to medical benefits, PIP will also pay for lost wages and replacement services for up to three years after the date of a crash, according to Michigan’s Department of Insurance and Financial Servicesregardless of who caused the accident.
- Property Protection (PPI)
This covers up to $1 million in damage that a driver causes to someone else’s property. Property includes buildings, fences, or properly parked vehicles.
- Residual Bodily Injury and Property Damage Liability (BI/PD)
BI/PD will pay for the injuries a person suffers or if an accident results in a death, up to the limits purchased. Although the new law requires that drivers carry the following limits, they do have the option of purchasing higher ones:
- Up to $250,000 for an individual who is injured or killed in an accident.
- Up to $500,000 for each accident if several individuals are injured or killed.
- Up to $10,000 for property damage that occurs in another state.
Now, if a driver is unable to work due to their injuries, they may be entitled to receive compensation for lost wages by filing a claim under their PIP policy.
Recovering Compensation for Lost Wages from the At-Fault Driver
If another driver was responsible for causing an accident and the injured party is unable to recover enough to cover their lost wages or other damages from the insurance companies, they may be able to bring a personal injury lawsuit against the driver.
If an accident victim would like to find what steps they should take so they are properly compensated for their injuries, lost wages, pain and suffering, and more, they can contact the Grand Rapids, MI accident lawyers at the Neumann Law Group. The Neumann Law Group does offer free consultations and can be reached at (800) 525-6386.
Neumann Law Group can be reached at:
250 Monroe Ave NW #400
Grand Rapids, MI 49503
Phone: (616) 717-5666