Do no-fault laws affect personal injury claims in Michigan? Michigan’s no-fault laws have a significant impact on personal injury claims. Your own personal injury protection (PIP) insurance likely will cover the majority of your costs, and your ability to sue the at-fault party is limited.
Working with a Lansing personal injury lawyer can help you to feel confident that you are receiving full compensation for your injuries.
Michigan’s No-Fault Laws Directly Change How Personal Injury Claims Work
Since Michigan has no-fault laws, there can be major differences compared to other states as it pertains to filing a claim. Rather than pursuing the at-fault driver’s insurance, the first step is generally to file a claim with your own auto insurance and personal injury protection insurance.
This system lessens the need to prove fault in a typical car accident. There are scenarios in which you would be able to pursue the at-fault driver, but those are far less common. With its no-fault system, Michigan drivers are often able to receive payment for their injuries much faster than if they had to prove fault first.
Typically, drivers can recoup costs for medical expenses, lost wages, and accident-related expenses directly through their own car insurance. For vehicle damage, they would turn to their property damage liability coverage.
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There are Many Options For No-Fault Coverage, Each With Its Own Level of Protection
Personal injury protection is generally mandatory for Michigan drivers; however, there are different coverage levels for drivers to choose from, as outlined in this brief explanation of Michigan no-fault insurance. The coverage options include:
- $500,000 per person per accident
- $250,000 per person per accident
- $250,000 per person per accident with exclusions. This option has specific healthcare coverage requirements
- $50,000 per person per accident. This option has stricter health insurance requirements
- No medical PIP coverage. This level requires the highest level of health insurance, including Medicare Parts A and B.
The cost of each option depends on your auto policy, which can be affected by age, driving record, and the vehicles you insure. Due to Michigan’s no-fault laws, your personal injury claim may be affected based on the level of coverage you choose.
No-Fault Laws Limit When You Can Sue Another Driver
Since most claims are settled by your own insurance, your options are more limited when it comes to suing another driver after an accident. Working with a Lansing car accident lawyer can help you understand if pursuing a lawsuit is the right choice in your situation.
There are some scenarios where you may decide to move forward with suing another driver. These can include serious impairment of body function that affects your ability to function normally, excess economic loss beyond your PIP coverage, pain and suffering, and property damage if not covered by your own insurance.
In these cases, you can typically only sue if you can prove that the other driver was at least 50% at fault due to Michigan’s comparative negligence laws (600.2959). It is important to note that if you do not have insurance, you may not be able to sue regardless of who was at fault.
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Personal Injury Protection Insurance Covers Many Costs
Since no-fault laws affect personal injury claims in Michigan, personal injury protection is the main provider of benefits after an accident. Common items covered under personal injury protection insurance may include:
- Current medical expenses
- Future medical expenses related to the accident
- Attendant care if assistance is needed with things like bathing, dressing, or completing household chores
- Wage loss up to 85% if injuries prevent you from working, payable for up to three years (MCL – Section 500.3107)
- Home or vehicle modification needed as a result of injuries
- Costs associated with travel to and from medical appointments
Every scenario is different, so it is important that you consult with a knowledgeable attorney to ensure you are adhering to all rules and regulations and receiving full benefits for what you have endured.
You will always work directly with your attorney throughout your case.
Property Damage Claims are Handled Differently Under Michigan’s No-Fault Rules
Not only do no-fault laws in Michigan affect personal injury claims, but they also affect property damage claims. Vehicle damage is not fully covered under Michigan’s no-fault system. Oftentimes, to recover damages, drivers may file a “mini-tort”.
Under “mini-tort,” drivers who are less than 50% at fault may be able to sue for up to $3,000 to recover costs of vehicle repair. This may be covered by their insurance; if they are uninsured, you may have to pursue it in small claims court.
Most drivers have collision coverage and property protection insurance; however, if costs surpass the limits or if there is a deductible, you and your attorney may determine that a lawsuit is the direction to go to fully recover damages.
Filing Deadlines are Affected by Michigan No-Fault Rules
No-fault claims have specific guidelines regarding filing deadlines. In Michigan, you have one year from the date of the accident to submit notice to the insurer (MCL 500.3145). You also may only claim losses that were incurred over the last 12 months, so it is essential that you file quickly.
There are exceptions to deadlines, such as if the injured person is a minor or is deemed to be mentally incapacitated. There are also exceptions if an accident involves a government entity or if a wrongful death occurs. These exceptions are not the norm, but they are worth being aware of.
Missing deadlines may leave you at risk of being unable to recover costs that you are owed. Working with an attorney gives you confidence that dates are met and deadlines are not missed.
White Law PLLC is Here to Represent You
Understanding the complexities of Michigan’s no-fault laws and how they affect personal injury claims can be challenging, so working with an experienced attorney can be beneficial.
At White Law PLLC, we understand these nuances and are prepared to fight for you. Contact us today for your free consultation and see what your case may be worth.
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