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What Does it Mean When People Say “Michigan is a No-Fault State”?

| May 15, 2023 | No Fault Insurance Claims, Personal Injury

Historically, Michigan has been a “no-fault state” for car accidents. After the amendment to the No-Fault Law in May of 2019, the rules regarding available coverage and benefits were significantly changed and Michigan is no longer a pure no-fault state.

In a no-fault state, you normally seek compensation for damage caused by your accident by filing a claim directly with your personal insurance company. This is called a first party claim.

For example, collision damage caused to your car are paid by your own insurance company. Your deductible is waived if you are less than 50% at-fault and you have broad coverage. However, under the amended Law, the other driver may be responsible for up to $3,000.00 of collision damages. This is referred to as a mini-tort claim under the no-fault law.

Under the new law, your insurance company is still responsible for paying wage loss benefits for up to three years after the accident. Medical expenses are owed assuming you elected this coverage when purchasing your auto coverage. Before the change in the Law, unlimited medical coverage was mandatory and covered all accident related medical treatment and medical expenses were the responsibility of your insurance company. If you elected to waive medical coverage, the other driver may be responsible to pay for these damages.

Under the old Law, the at-fault driver could not be sued for payment of medical expenses unless the vehicle involved was uninsured at the time of the accident. Michigan is no longer a pure no-fault state with respect to auto insurance benefits.

Can I File a Car Accident Lawsuit in Michigan For Personal Injury?

You cannot pursue compensation for your personal injuries (non-economic) with the other drivers’ insurance company (known as a third party claim) unless you have suffered serious injury in the accident. This rule has not changed since the amendment. If the injuries sustained in an auto accident are serious enough to result in disfigurement, temporary or permanent disability, or fractures, you become eligible to pursue an auto accident lawsuit in civil court, filed directly against the driver responsible for the accident. There is a time limit on one’s ability to sue, called the statute of limitations.

In Michigan, the statute of limitations is three years for a personal injury suit in an auto accident. This time period can be extended if the injured party was a minor or incapacitated.

What Happens If I Was Partially at Fault For a Car Accident?

Michigan follows comparative fault rules, meaning that personal injury compensation claims are apportioned based on the percentage of fault in causing the accident. For example, if your accident resulted in $100,000.00 worth of damages, but you were found to be 20% at fault, you are only able to recover $80,000.00 from the other driver. If you are more than 50% at fault for the accident, you cannot recover compensation for non-economic damages.

What Are the Car Insurance Requirements in Michigan?

It is against the law to drive a car without insurance in Michigan. You must have proof of your coverage in your car available for inspection. The minimum liability insurance requirements in Michigan are as follows:

Bodily injury liability insurance covers claims made against you for injuries to others if you are at fault in an auto accident. Michigan auto insurance policies are required to provide bodily injury liability insurance coverage of not less than $250,000 per person and up to $500,000 per accident (A$250,000/$500,000″) for these claims unless you select higher or lower limits depending on the amount of protection you need. In no event can you select less than $50,000 per person and $100,000 per accident. If you do not make a selection, your policy will be issued with limits of $250,000/$500,000.

The above amount is the minimum limits, and many accidents cause more damage than the minimum requirements cover. If the injuries and property damage caused in an accident exceed your policy limit, you may be personally liable for the injuries caused by the car crash. It is recommended you purchase coverage that is greater than the minimum limits.

How Much is My Car Accident Injury Case Worth?

The amount of compensation depends on the extent of your injuries and the effects those injuries have had on your life. The general rule is that the greater the harm the higher the compensation. The compensation is made to make up for the harm caused. You should be compensated for all your economic losses related to the accident, both short-term and long-term. Those damages may include:

    • Medical bills, including hospital bills, ambulance fees, surgery, physical therapy, medication and other costs that are not covered by your auto insurance.
    • Lost wages and lost future income if your injuries affect your ability to work.
    • Attendant care benefits beyond the limits of 56 hours per week.
    • Pain and suffering, emotional distress and mental anguish.
    • Loss of quality and enjoyment of life.
    • Loss of consortium (a legal term for damage to family or intimate relationships due to an injury).

A qualified car accident attorney can determine the value of your claim. That’s why you should always talk to a lawyer as soon as possible after a car crash, and certainly before you accept a settlement offer from the insurance company. Insurance companies are known to make low settlement offers if you are not represented by an attorney.

What Should I Do After an Accident?

    • Call the police. This allows you to report to the authorities right away, establish your account of the event, document the accident scene and involved parties.
    • Photograph the vehicle damage if possible.
    • Get medical attention. Do this as soon as possible – if there are EMTs at the scene of your accident, don’t turn down an evaluation. See a doctor as soon as possible.

What Does Pip Insurance Cover in Michigan?

Personal Injury Protection

Personal Injury Protection coverage applies to accidents occurring throughout the United States and Canada and may provide coverage to any injuries involving a motor vehicle. Benefits are paid to an accident victim by their own insurance company. Those benefits can include:

    • Your reasonable and necessary medical expenses depending on your election of coverage including attendant care benefits.
    • Up to three years of lost wages.
    • $20.00 a day for services you cannot perform for up to three years.
    • If you are killed, survivor’s loss benefits for your dependents.
    • Benefits for funeral and burial expenses.

What Is Underinsured/Uninsured Coverage?

You can carry underinsured or uninsured motorist coverage. Many drivers don’t have the funds to purchase the amount of insurance that the law requires. If the other driver’s policy limit is the bare minimum, your underinsured motorist insurance will be there to compensate for the difference, up to your policy limit.

What if you’re hit by someone who has no insurance?

Uninsured Motorist coverage means that you can be compensated for your injuries even if the at-fault driver does not have insurance. Without this coverage, you may be left trying to go after personal assets that don’t exist. The details of insurance coverage can be very complicated, and you will need a car accident compensation attorney who can make sure your rights are fully protected.

If you were injured in an accident it is important to get a legal review of the case as soon as possible. Our Ann Arbor personal injury law firm serves clients throughout Michigan. Contact our firm at any time for for a Free Consultation or help with your accident injury claim.

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