Replacement Services

Michigan No-Fault Insurance Replacement Service Expenses

The third type of payable Michigan no-fault PIP benefit is replacement service expenses, which is governed by M.C.L. 500.3107(1)(c), which states that personal protection benefits are payable for:

Expenses not exceeding $20.00 per day, reasonably incurred in obtaining ordinary and necessary services in lieu of those that, if he or she had not been injured, an injured person would have performed during the first 3 years after the date of the accident, not for income but for the benefit of himself or herself or of his or her dependent.

Similar to wage loss benefits, replacement service expenses are capped at 3 years and $20 per day. Yet different than wage loss benefits, replacement service expenses are not adjusted annually to keep up with cost of living adjustments.

The case law on replacement service expenses in Michigan is not very extensive, and therefore, you should consult with an expert Michigan car accident lawyer to find out if you are entitled to replacement service expenses.

However, what is clear from the statute is that payment of replacement service expenses to replace income generating services is prohibited.

Also, it is important to note that the replacement service expense must be reasonably “incurred.” Most case law has been in agreement with the dictionary definition of “incurred” as being “to be liable for.” Talk to an expert Michigan car accident attorney to determine whether expenses you seek to recover were reasonably incurred.

If you or someone you know was recently injuried in a car accident and you would like to know your rights and what you are entitled to collect, please set up a free case review with one of the leading expert car accident law firms in Michigan.