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Death doesn’t end a person’s right to receive benefits under their Michigan No-Fault auto insurance policy. Before turning to a wrongful death lawsuit against the at-fault driver, families can turn to their insurance provider to receive survivor benefits to get them through the tough first years.
Who Gets Survivor Benefits?
Michigan law requires insurance providers to pay survivor benefits to the dependents of a policy holder after a fatal accident. Dependents lived with the deceased person at the time of their death or looked to the deceased for regular support. These parties include:
- Spouses
- A child under 18 years of age, as long as the child lived with the deceased parent or received support from them
- A child who is physically or mentally disabled, incapable of earning income, and was a dependent of the deceased
Other parties can pursue survivor benefits if they prove they were supported by the deceased person. A Michigan wrongful death lawyer can help you determine if you are qualified to receive these benefits.
What Are Survivor Benefits?
After a fatal car accident, the deceased’s dependents can file a claim for survivor benefits with the insurance company. Those benefits include:
- Medical Expenses. If the deceased received any medical care before he died, the family can get those reasonable and necessary medical expenses covered by the insurance company.
- Funeral and Burial Expenses. The deceased’s no-fault policy is also required to pay for reasonable funeral and burial expenses including the cost of the casket, the funeral itself, and the burial plot or cremation services.
- Lost Income. Survivor benefits include compensation for the lost income brought into the household by the deceased. These benefits are broader than traditional lost wages, and include the cost of health insurance or other fringe benefits paid for by her employer.
- Replacement Services. Your deceased family member did more than earn income. Whether it is housekeeping, lawn maintenance, or childcare, this loss may mean you now have to hire someone to fill the gap. Michigan No-Fault policies allow for up to $20 per day in replacement services to help you and your family get things done.
When Do Survivor Benefits End?
Survivor benefits won’t keep your family afloat forever. Lost income and replacement services are only available for the first three years after a fatal accident. Beyond that, support for your family will need to come from a wrongful death lawsuit against the at-fault driver.
Changes in a dependent’s life can also end their survivor benefits. Children are only entitled to benefits until they turn 18, unless a mental or physical disability prevents them from working. For most young adults, that means support cuts off just as they are ready to start college or life on their own.
Surviving spouses, too, can lose their benefits if they remarry within the 3-year window after the deceased’s accident. Families receiving survivor benefits should keep in contact with their wrongful death attorneys, to make sure they know what to expect when these changes happen.
How Does PIP Work in Michigan?
Michigan car accidents follow what’s called a “No-Fault” insurance system. This means that determining fault is not essential when seeking benefits after a car accident. Michigan drivers turn to their own insurance policies for a payout. Michigan requires drivers to hold a personal injury protection (PIP) plan. This PIP coverage is what gives surviving dependents of decreased drivers these survivors loss benefits.
However, there are limitations of PIP plans, as the state has monthly limits for payouts.
- Per the DIFS bulletin released September 4th, 2024, : the monthly limit for October 2024 through the end of September 2025 is $7,014 per 30 day period.
This limit will change yearly, so it’s best to check the Department of Insurance and Financial Services (DIFS) bulletin website for updated limits, or call (877) 999-6442 to confirm the amount.
Applying for Survivors Loss Benefits in Michigan
If your loved one passed away in an auto collision, please accept our sincerest condolences. You have a lot on your plate right now, but it’s important to act quickly to preserve your right to survivors benefits.
First, contact your loved one’s auto insurance provider to get your claim started. You will need to provide proof of their passing. Typically, a death certificate will do but speak to the insurer or to determine what acceptable proof will be. The insurer should pay you within 30 days of receiving your proof of the death of your loved one, per MCL 500.3142.
If the insurer denies your claim, delays payment, or if these benefits are not sufficient, you can contact a Michigan car accident lawyer for help. Please note that you only have one year to file your PIP claim per Mich. Comp. Laws Ann § 500.3145.
Wrongful Death Lawsuits and Survivors Loss Benefits
Sometimes, the survivors loss benefits are not enough coverage for surviving family members. While no amount of money can ever truly make up for the loss of a loved one, your family deserves a fair amount that will help ease the pain of losing your family member to negligence.
You may be able to pursue a wrongful death lawsuit on behalf of the deceased to address losses not covered by the PIP policy, or losses that exceed the policy. These cases are quite complex to negotiate and litigate, and a Michigan personal injury lawyer can help guide you through this process.
A lawyer can represent you in discussions with insurers, negotiating for a settlement that acknowledges your emotional losses and pays for additional costs. Sometimes, however, insurers are not cooperative and will not offer a satisfactory settlement. If this is the case, an attorney can represent you in court and seek a judgment that helps your family recover.
Our Michigan Accident Team Helps With Survivors Loss Benefits After a Fatal Crash
The attorneys at Christensen Law have been helping families of fatal car accident victims for over 30 years. We will make sure your family has the support it needs to get through the first tough years after losing a loved one to an auto accident. Call us now for a free consultation, where we can discuss survivors loss benefits and a potential lawsuit.
