Michigan's auto no-fault law covers all reasonable charges incurred for reasonably necessary products, services and accommodations for an injured person’s care, recovery, or rehabilitation.
Because of this law, injured people receive benefits that go far beyond what is available to them from their health insurance. There are no preset caps or limits in this model - everything is based on need. So if you need physical therapy multiple times a week for a few years, you'll get it.
This unique system is funded through a reinsurance mechanism that is paid for by drivers. Every year, drivers pay a modest additional premium that goes into a catastrophic claims fund. This fund covers insurer's costs after a certain point, so they aren't left having to pay for unlimited, lifetime care. The Michigan no-fault model has been providing what has many times been referred to as the best insurance coverage in the country for over 40 years. Despite all of these extensive benefits, Michigan's catastrophic claims fund has grown to over $20 billion.
Covered benefits under the Michigan model:
- Helicopter airlift
- Entire hospital stay
- All necessary surgeries
- 24 hour in-home nursing care
- Power wheelchair & modified van
- Home modifications
- Lowering countertops
- Roll-in shower
- Hospital grade beds
- Ramps and lifts
- Uncapped, extensive therapies
- Community based long term care facilities
- Structured living
Despite these extensive benefits, Michigan's catastrophic claims fund has grown to over $20 billion.