Michigan PIP Survivor’s Loss Benefits: MCL 500.3108 (2026)
When a Michigan car accident kills a wage earner, the household loses far more than wages — it loses years of contributions to rent, groceries, tuition, and household services. MCL 500.3108 creates a no-fault benefit, paid by the deceased’s PIP carrier, that replaces those lost contributions for the surviving dependents. The current monthly maximum is $7,201 through September 30, 2026 (DIFS Bulletin 2025-18-INS), and the benefit is layered with the Michigan Wrongful Death Act in ways that drive most of the recovery in fatal-crash cases.
What the Statute Covers
MCL 500.3108 pays two distinct streams to a deceased insured’s dependents: (a) survivor’s loss of contributions of tangible things of economic value the dependents would have received from the deceased had the deceased lived; and (b) up to $20 per day in replacement services the dependents must now obtain. Both streams run for three years from the date of the accident, subject to the monthly maximum and the deceased’s pre-death earnings ceiling.
Who Qualifies as a Dependent
The benefit is paid to the deceased’s “dependents,” defined by reference to the family-relationship rules at MCL 500.3110. The category includes:
- The surviving spouse if living with the deceased at the time of death (or estranged spouses in some circumstances).
- Children under age 18. Conclusive presumption of dependency.
- Children 18 or older who are physically or mentally incapacitated from earning — the dependency must be ongoing at the time of death.
- Other relatives domiciled in the same household who can prove actual financial dependence on the deceased.
Dependency for adult children turns on factual proof of financial support, not just biological relationship. Counsel should pull deposit history, joint household expenses, and tax-return dependency claims before filing the application.
Calculating the Loss
The benefit replaces the contributions the dependents would have received, not the deceased’s gross pay. The carrier applies a tax-adjusted net earnings figure (the deceased’s gross pay minus federal, state, and FICA), then deducts any portion the deceased would have consumed personally. Many carriers use a “personal-consumption deduction” of 25 to 35 percent of net pay; plaintiff’s counsel should be prepared to push back where the household’s actual budget shows a lower consumption share.
| Element | Statutory Source | 2026 Detail |
|---|---|---|
| Monthly maximum | MCL 500.3107a referenced in 500.3108 | $7,201 (10/1/25 – 9/30/26) |
| Duration of benefit | MCL 500.3108(1) | 3 years from date of accident |
| Replacement services | MCL 500.3108(1) | Up to $20/day |
| One-year claim deadline | MCL 500.3145 | One year from date of death to file application |
| One-year-back rule | MCL 500.3145(1) | Recovery limited to benefits incurred within 12 months pre-suit |
| Survivor’s loss adjustment | MCL 500.3107a / DIFS Bulletins | Annual recalculation tied to state average weekly wage |
Survivor’s Loss vs. Work Loss to the Estate
Survivor’s loss under MCL 500.3108 is paid directly to the dependents and replaces the contributions they would have received. Work-loss benefits the deceased might have collected if living are a different category under MCL 500.3107(1)(b) and are payable to the estate for the period between the accident and death. The two streams do not overlap because work loss ends at death and survivor’s loss begins at death. Counsel handling a fatal-crash claim should request both streams in the same PIP application — carriers will pay one and ignore the other if not pressed.
Interaction with the Michigan Wrongful Death Act
Survivor’s loss is no-fault. The Michigan Wrongful Death Act, MCL 600.2922, is the tort track. The two streams run in parallel. PIP survivor’s loss is paid regardless of fault by the deceased’s no-fault carrier. The wrongful-death tort claim is brought against the at-fault driver and is subject to the threshold and damages framework discussed in our wrongful-death guide. The PIP carrier holds no subrogation interest against the tort recovery for survivor’s loss benefits, so the two recoveries are stackable. Verifying that the PIP application was timely filed is the first move on every fatal-crash intake.
Deadlines That End the Claim
Two deadlines matter and they are not the same:
- One-year application deadline. Under MCL 500.3145, a written notice of injury must be furnished to the insurer within one year of the accident causing death. For a fatal crash, the personal representative typically files the application. Missing this deadline forfeits the entire survivor’s loss claim.
- One-year-back rule. Once suit is filed, recovery is limited to benefits incurred within the 12 months preceding the lawsuit date. For survivor’s loss this is critical because the benefit accrues monthly — every month of delayed litigation forfeits another month of benefits.
When the Out-of-State Issue Comes Up
If the deceased was a Michigan resident killed in a crash in Ohio, Indiana, or Illinois, the Michigan PIP carrier still owes survivor’s loss benefits under MCL 500.3111 (subject to the certification rules for out-of-state insurers under MCL 500.3163). If the deceased was a non-resident driving a vehicle registered out of state, the Michigan Assigned Claims Plan analysis under MCL 500.3172 may apply. Both scenarios require careful priority analysis at intake.
Common Carrier Defenses
- “Not a dependent.” Carriers challenge adult-child dependency aggressively. Document the financial support pattern early.
- “Consumption deduction too low.” Carriers default to 30 to 35 percent consumption. Push back with actual household budget evidence.
- “Earnings did not include benefits.” Carriers count W-2 wages and ignore employer-provided benefits like health insurance premium contributions. Those are tangible economic value under the statute and should be included.
- “Late application.” The one-year deadline is strict but is tolled by the personal-representative appointment timing under MCL 500.3145 and by an insurer’s prior payment of any benefit.
Attorney Fees on Wrongfully Denied Survivor’s Loss
MCL 500.3148(1) shifts attorney fees to the carrier when the refusal or delay of PIP benefits is unreasonable. Survivor’s loss denials based on consumption-deduction or non-dependent grounds often qualify when the carrier cannot articulate a reasonable factual basis for the position. The Pirgu v. United Services Auto Ass’n, 499 Mich. 269 (2016), eight-factor framework governs the lodestar — see our no-fault attorney fees guide.
Frequently Asked Questions
What is the maximum monthly survivor’s loss benefit in Michigan in 2026?
$7,201 per month through September 30, 2026, per DIFS Bulletin 2025-18-INS.
For how long are survivor’s loss benefits paid?
Three years from the date of the accident causing death, under MCL 500.3108.
Who qualifies as a dependent?
Surviving spouse living with the deceased, children under 18 (conclusively presumed), adult children incapacitated from earning, and other relatives domiciled in the household with proven financial dependence.
Does the wrongful-death recovery offset survivor’s loss?
No. PIP survivor’s loss is paid regardless of fault and is not subrogated against the wrongful-death tort recovery. The two streams stack.
What is the deadline to file a survivor’s loss claim?
One year from the date of the accident under MCL 500.3145, unless the insurer has previously paid a benefit. The one-year-back rule then limits recovery to the 12 months preceding the lawsuit.
What if the deceased was self-employed?
Self-employment income still counts. The carrier will typically require tax returns covering the three years before the accident to establish a reasonable contribution-replacement figure.
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