Michigan no-fault glossary

Terms are in alphabetical order. Links go to the page that explains each one in depth. Figures are current for crashes on or after October 1, 2026 unless stated.

Adjuster

The insurance company employee who handles a claim, decides what to pay, and gathers evidence. The adjuster on your own no-fault claim also investigates whether to pay you. See what not to say to an adjuster.

Allowable expenses

The PIP benefit for reasonable charges for reasonably necessary products, services and accommodations for an injured person’s care, recovery or rehabilitation, under MCL 500.3107(1)(a). It covers medical treatment, prescriptions, attendant care, medical mileage and home modifications. See PIP medical benefits.

Andary v. USAA

The Michigan Supreme Court’s July 31, 2023 decision holding that the 2019 fee schedule and the 56-hour family attendant care limit do not apply to people injured while covered by a policy issued before June 11, 2019. See Andary v. USAA explained.

Assigned claims plan

The common name for the Michigan Assigned Claims Plan, the source of PIP benefits when no auto policy applies.

Assignment

A written transfer of an injured person’s right to PIP benefits to a medical provider, so the provider can pursue payment. An assignment of benefits already incurred is allowed, but an agreement to assign benefits payable in the future is void under MCL 500.3143. See direct claims and assignments.

Assured clear distance ahead

The rule in MCL 257.627(1) that a driver may not go faster than will allow a stop within the clear distance ahead. Courts apply it with the road conditions in mind, which is why it decides many winter rear-end crashes. See winter crashes in Michigan.

Attendant care

Care for an injured person who needs help with daily needs or supervision, paid as an allowable expense. For people subject to the 2019 reform, in-home care from family, household members or people with a prior relationship is paid for up to 56 hours per week under MCL 500.3157(10). See attendant care.

Bodily injury liability

The part of an auto policy that pays when its driver is legally responsible for injuring someone else. Since July 2020 the default limits are $250,000 per person and $500,000 per accident, and the lowest a driver may choose is $50,000 and $100,000. See how much insurance the other driver has.

Catastrophic Claims Association (MCCA)

The Michigan Catastrophic Claims Association, a nonprofit created in 1978 that reimburses auto insurers for PIP losses above a retention amount. Every Michigan auto insurer must belong to it. See MCCA.

Collision coverage

Optional coverage for damage to your own car in a crash. Broad form pays regardless of fault and waives the deductible if you were not more than 50% at fault; standard always applies the deductible; limited pays nothing if you were more than 50% at fault (MCL 500.3037). See reading your declarations page.

Comparative fault

The rule that reduces a damages award by the injured person’s share of fault. In an auto case, a person more than 50% at fault recovers no noneconomic damages under MCL 500.3135(2)(b). See comparative fault.

Comprehensive coverage

Optional coverage for damage to your car from causes other than a collision, such as theft, fire, flood, vandalism, a falling object or hitting an animal.

Contingency fee

A lawyer’s fee paid as a percentage of the money recovered, with no fee if nothing is recovered. Michigan Court Rule 8.121 caps it at one-third of the amount recovered in personal injury cases, computed after case costs are deducted. See fees and costs.

Coordinated coverage

A PIP option, allowed by MCL 500.3109a, under which your health insurance pays first for crash injuries and PIP pays what it does not cover, in exchange for a lower premium. See health insurance, Medicare and PIP.

Declarations page

The summary page of an auto policy listing the named insureds, vehicles, coverages, limits, deductibles and premiums. It is the fastest way to find your PIP medical level and whether you have uninsured motorist coverage. See reading your declarations page.

Direct cause of action

A medical provider’s right, under MCL 500.3112 as amended in 2019, to make a claim and sue a no-fault insurer for its own charges without an assignment from the patient. See direct claims and assignments.

Domicile

The place a person lives and intends to stay. It decides whether you are a “resident relative” who can claim PIP under a spouse’s or relative’s policy. See which insurer pays.

Dram shop claim

A claim under MCL 436.1801 against a licensed seller of alcohol that served a visibly intoxicated person who then caused injury. Written notice must go to every defendant within 120 days after you hire a lawyer, and suit must be filed within two years. See drunk and impaired drivers.

Examination under oath (EUO)

Sworn questioning of an insured by the insurer’s lawyer, with a court reporter, required by many policies. Michigan courts enforce these clauses only to the extent they do not conflict with the no-fault act (Cruz v. State Farm, 2002). See recorded statements and examinations under oath.

Excess economic loss

Medical expenses, wage loss and survivors’ loss above PIP’s limits or after its three-year period, which can be claimed from the at-fault driver under MCL 500.3135(3)(c). Lost income is reduced by the taxes that would have been paid. See excess medical and wage claims.

Excluded operator

A person named on a policy as not covered when driving the insured vehicle. Under MCL 500.3113(d), an excluded operator injured while driving that vehicle cannot claim PIP benefits.

Fee schedule

The limits on what providers may charge for PIP-covered care under MCL 500.3157. For treatment after July 1, 2023, most providers are capped at 190% of Medicare, or 52.5% of their January 1, 2019 charge when Medicare sets no amount. See the fee schedule.

First-party claim

A claim against your own insurer, or the insurer that covers you, for no-fault benefits. Fault does not matter. See no-fault benefits.

Formal denial

An insurer’s clear refusal to pay a specific claim. It ends the tolling of the one-year-back period under MCL 500.3145(3). See benefits denied or cut off.

Funeral and burial benefit

A PIP benefit for funeral and burial expenses. The policy amount ranges from $1,750 to $5,000 under MCL 500.3107(1)(a). See survivors’ loss and funeral benefits.

IME (insurer medical exam)

An exam by a doctor the insurer chooses and pays, allowed by MCL 500.3151. The doctor must match your treating specialist’s specialty and board certification and meet practice-time rules. Insurers often call it an independent medical exam. See insurer medical exams.

MACP (Michigan Assigned Claims Plan)

The insurer of last resort for people with no applicable auto policy. It assigns each claim to a servicing insurer and limits medical benefits to $250,000 under MCL 500.3172. An application must be filed within one year of the crash. See Michigan Assigned Claims Plan.

MAIPF

The Michigan Automobile Insurance Placement Facility, which administers the Michigan Assigned Claims Plan and receives its applications. See Michigan Assigned Claims Plan.

Medical mileage

Reimbursement for travel to medical appointments, therapy and pharmacies, paid as an allowable expense. See medical mileage and travel.

Mini-tort

A claim against an at-fault driver for up to $3,000 of vehicle damage not covered by your insurance, such as a collision deductible, under MCL 500.3135(3)(e). You cannot recover if you were more than 50% at fault or your car was uninsured. See property protection and the mini-tort.

Named insured

The person or business listed on the declarations page as the policyholder. The named insured’s spouse and resident relatives are usually covered for PIP under the same policy.

No-fault reform (2019)

Public Acts 21 and 22 of 2019, which created PIP coverage choices, the fee schedule, the 56-hour family attendant care limit, utilization review and provider direct claims. See the 2019 no-fault reform.

Noneconomic damages

Compensation for pain, suffering, emotional distress and loss of enjoyment of life. In a Michigan auto case they are available only if the injury meets the threshold. See what a case is worth.

Notice of injury

The written notice that preserves a PIP claim when given within one year of the crash. Under MCL 500.3145(4) it must give the claimant’s name and address, the injured person’s name, and the time, place and nature of the injury. A completed application for benefits serves as notice. See deadline calculator.

One-year-back rule

The limit in MCL 500.3145(2) that a lawsuit can recover only PIP losses incurred within one year before it is filed, subject to tolling. See the one-year-back rule.

Opt-out

The choice under MCL 500.3107d to carry no PIP medical coverage. Only a named insured with Medicare Parts A and B can choose it, and every household member must have qualified health coverage or other PIP medical coverage. See choosing a PIP coverage level.

Overdue benefits

PIP benefits not paid within 30 days after the insurer receives reasonable proof of the fact and amount of the loss. They carry 12% simple interest a year under MCL 500.3142. See interest and attorney fees.

Permanent serious disfigurement

One of the three ways to meet the threshold for suing an at-fault driver for noneconomic damages, along with death and serious impairment of body function. See the serious impairment threshold.

PIP (personal protection insurance)

The core of Michigan no-fault coverage. It pays allowable expenses, work loss, replacement services and survivors’ loss without regard to fault under MCL 500.3105 and 500.3107. See no-fault benefits.

PPI (property protection insurance)

No-fault coverage that pays up to $1 million for damage your vehicle causes in Michigan to other people’s property, such as buildings, fences and properly parked cars, under MCL 500.3121. See property protection.

Priority

The order of insurers responsible for a PIP claim under MCL 500.3114 and 500.3115. Usually your own policy pays first, or a spouse’s or resident relative’s. Special rules apply to employer vehicles, commercial passenger vehicles and motorcyclists. If no policy applies, the claim goes to the assigned claims plan. See which insurer pays and priority disputes for providers.

Qualified health coverage

Under MCL 500.3107d(7)(b), either Medicare Parts A and B, or other health coverage that does not exclude or limit auto injuries and has an individual deductible of $6,000 or less, adjusted for inflation. It is required for the opt-out and the $250,000 option with exclusions. See choosing a PIP coverage level.

Reasonable proof

Documentation of the fact and amount of a loss, such as a bill with records, that starts the insurer’s 30-day clock to pay under MCL 500.3142. See reasonable proof and documentation.

Rear-end presumption

The rule in MCL 257.402(a) that a driver who strikes the rear of a vehicle going the same direction, or lawfully stopped, is presumed negligent. The presumption can be rebutted, for example by a sudden emergency. See winter crashes in Michigan.

Recorded statement

An audio-recorded interview an adjuster takes about the crash and your injuries. You have no duty to give one to the other driver’s insurer. See recorded statements and examinations under oath.

Release

A signed document ending a claim in exchange for payment. A release can end future benefits too, so read every word before signing.

Replacement services

PIP payment of up to $20 a day for household tasks the injured person would have done, such as cleaning, cooking, yard work and driving, for up to three years after the crash under MCL 500.3107(1)(c). See replacement services.

Rescission

An insurer’s attempt to void a policy from the start, usually because of a misstatement in the application. It is an equitable remedy, and courts must balance the equities before rescinding as to an innocent third party (Bazzi v. Sentinel, 2018). See fraud claims and policy rescission.

Residual liability

The bodily injury and property damage liability coverage that protects you when you are sued after a crash, including crashes in other states. See bodily injury limits.

Retention

The amount of a PIP claim an auto insurer pays before the Michigan Catastrophic Claims Association reimburses it. The MCCA resets the figure periodically. See MCCA.

Serious impairment of body function

Under MCL 500.3135(5), an impairment that is objectively manifested, affects an important body function, and affects the person’s general ability to lead his or her normal life. There is no minimum duration. See the serious impairment threshold.

Spoliation

The loss or destruction of evidence a party should have preserved, including deleted social media posts. A Michigan jury may be told it can infer the missing evidence was unfavorable. See social media and your claim.

Statute of limitations

The deadline to file a lawsuit. It is three years from the crash for a claim against an at-fault driver under MCL 600.5805, and one year under MCL 500.3145 for PIP claims. See deadline calculator.

Sudden emergency doctrine

A defense that excuses a driver who faced a totally unexpected situation not of his or her own making. Ordinary winter conditions a driver should anticipate do not qualify. See winter crashes in Michigan.

Surveillance

Video or photos an insurer’s investigator takes of a claimant, often paired with a review of social media, to argue the claimant is less limited than reported. See social media and your claim.

Survivors’ loss

The PIP benefit for a deceased person’s dependents under MCL 500.3108: the financial support they would have received and up to $20 a day for services, for up to three years after the crash, subject to a monthly maximum. See survivors’ loss and funeral benefits.

Third-party claim

A claim against the at-fault driver and that driver’s insurer for noneconomic damages and excess economic loss. See car accidents.

Threshold

The injury level required to sue an at-fault driver for noneconomic damages under MCL 500.3135(1): death, serious impairment of body function, or permanent serious disfigurement. See the serious impairment threshold.

Tolling

A pause in a deadline. Under MCL 500.3145(3), the one-year-back period is tolled from a specific claim for payment until the insurer formally denies it, and the clock then resumes. Tolling does not apply if the claimant fails to pursue the claim with reasonable diligence. See deadline calculator.

UM/UIM (uninsured and underinsured motorist coverage)

Optional coverage on your own policy that pays what an uninsured, hit-and-run or underinsured driver would have owed you for injuries. Its terms and deadlines come from the policy, and Michigan courts enforce them as written. See uninsured and underinsured drivers.

Utilization review

An insurer’s evaluation under MCL 500.3157a of whether care was appropriate in level, quality and cost. A provider can appeal an adverse decision to the Department of Insurance and Financial Services. See utilization review appeals.

Work loss

The PIP benefit for 85% of gross income lost for up to three years after a crash, capped per 30 days. The cap is $7,455 for accidents from October 1, 2026 through September 30, 2027. See wage loss benefits.

Wrongful death claim

A lawsuit by a deceased person’s estate against the at-fault driver for the family’s losses. See fatal crashes and wrongful death.

Sources: MCL 257.402; MCL 257.627; MCL 436.1801; MCL 500.3009; MCL 500.3037; MCL 500.3105; MCL 500.3107; MCL 500.3107d; MCL 500.3108; MCL 500.3109a; MCL 500.3112; MCL 500.3113; MCL 500.3114; MCL 500.3115; MCL 500.3121; MCL 500.3135; MCL 500.3142; MCL 500.3143; MCL 500.3145; MCL 500.3151; MCL 500.3157; MCL 500.3157a; MCL 500.3172; MCL 600.5805; MCR 8.121; DIFS Bulletin 2026-20-INS; Andary v. USAA (Mich. 2023); Bazzi v. Sentinel Ins. Co. (Mich. 2018); Cruz v. State Farm (Mich. 2002).