Workers’ Compensation vs Auto Insurance: What’s the Difference?

Workers' Compensation vs Auto Insurance: What's the Difference?

Michigan lawyer explains workers’ compensation vs auto insurance when an employee gets into a car accident while on the job.

Our law firm represents individuals who are hurt on-the-job. We get them workers’ comp benefits, which includes medical treatment and lost wages. It does not matter if they are short-term employees because coverage begins immediately. Even accidents occurring before or after hours can be covered if on company property. Some of our clients have car accidents while driving for their jobs and this means auto insurance benefits might also be available. Here is what everyone should know about workers’ compensation vs auto insurance.

Workers’ Compensation

Michigan passed its first workers’ compensation law over 100 years ago. It protects employees hurt on-the-job by guaranteeing medical treatment and lost wages. In exchange for these automatic workers’ compensation benefits, employees gave up the right to sue for pain and suffering damages.

If an employee gets into a car accident while driving for their job, they should be covered under workers’ compensation insurance. It does not matter who was at fault or caused the car accident. So when it comes to comparing workers’ compensation vs auto insurance, workers’ comp is considered primary so it should always pay medical bills and wage loss first.

When comparing workers’ compensation vs auto insurance if an employee gets in a car accident when going to or coming home from work, this is typically not covered under workers’ comp. However, there are exceptions when certain factors are met.

These include whether mileage was paid for by the employer, whether the injury occurred during working hours, whether the employer derived a special benefit from the activities at the time, and whether the employee was subjected to excessive exposure to traffic risks.

Sometimes going to and coming home from work claims are difficult to analyze. It is a good idea to speak with an experienced workers’ compensation lawyer to ensure no benefits are missed.

Auto Insurance

When comparing workers’ compensation vs auto insurance in Michigan, Michigan has a No-Fault (PIP) law that protects drivers who are hurt. It pays medical bills and three years of wage loss. Michigan No-Fault includes money for replacement services and other items that workers’ compensation insurance typically does not cover.

Individuals who are disabled from working can collect additional money from auto insurance bringing total wage loss benefits to 85%.

Order of priority will determine which auto insurance company pays. It could be the employer’s insurance or from another household. Watch out for auto insurance companies who say workers’ compensation is primary and refuse to pay benefits. This is especially true if workers’ compensation has disputed the claim.

Drivers who are hurt because of negligence can also file a third-party lawsuit. This allows them to collect pain and suffering damages. Sometimes money recovered from the at-fault driver must be paid back to workers’ compensation insurance. It is important to have a lawyer who can negotiate potential liens and maximize the amount of money recovered.

Michigan Workers Comp Lawyers never charges a fee to evaluate a potential case. Our law firm has represented injured and disabled workers exclusively for more than 35 years. Call (844) 316-8033 for a free consultation today.

Related information:

Workers’ Comp Disability Settlement: What’s A Fair Offer?

Workers\' Compensation vs Auto Insurance: What\'s the Difference?
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