Michigan: Auto Insurance And Lawsuits

Michigan is a no-fault state, which means there are certain rules and requirements that don't exist in other states. If you are in a car accident in Michigan, there are three types of claims you can make: a no-fault claim against a car insurance company, a pain and suffering claim against the negligent driver, and a property claim for vehicle damage. If you are uninsured and not at fault, you cannot sue for pain and suffering, medical bills, lost wages, or vehicle damage. However, if you are insured, you can sue the at-fault driver for pain and suffering compensation, excess wage loss benefits, excess medical benefits, and vehicle damage.

Michigan's No-Fault insurance law

Personal Injury Protection covers accidents in the United States and Canada and provides coverage for any injuries involving a motor vehicle. Benefits are paid by the victim's insurance company and can include reasonable and necessary medical expenses, up to three years of lost wages, $20 a day for services the injured person is unable to perform, benefits for dependents in the event of death, and funeral and burial expenses.

Property Protection covers damage to the property of others (except moving vehicles) caused by the insured's car, up to $1,000,000. This does not include vehicles unless they are properly parked, and it does not apply to accidents outside of Michigan.

Residual Liability provides protection if the insured is sued or is legally responsible for an accident involving death, serious impairment of body function, or permanent serious disfigurement. It also covers accidents outside of Michigan for property damage and bodily injury, and actual damages that exceed the amount of coverage available under Personal Injury Protection. The required limits of coverage are up to $50,000 for one person's injury, up to $100,000 for all persons injured in one accident, and up to $10,000 for property damage. Higher limits can be purchased.

In addition to these mandatory coverages, Michigan's No-Fault Auto Insurance Law provides unlimited lifetime coverage for medical expenses resulting from auto accidents. To ensure the financial stability of insurance companies, the state legislature created the Michigan Catastrophic Claims Association (MCCA) in 1978. The MCCA reimburses auto insurance companies for each Personal Injury Protection claim paid over $580,000.

Under Michigan's No-Fault Insurance Law, a person injured in a car accident can sue if the No-Fault Personal Injury Protection medical benefits coverage level provides less than "unlimited" No-Fault medical coverage, and if the victim's medical costs exceed the coverage level in the policy. In this case, the victim can file a lawsuit against the at-fault driver for "excess" medical benefits, i.e., money damages to cover the extent to which the victim's medical bills exceed the amount the auto insurance company is obligated to pay under the policy.

Additionally, in the event of vehicle damage, the victim can sue the at-fault driver for up to $3,000 in vehicle damage repair costs under Michigan's mini tort law.

Suing without insurance

In Michigan, driving without insurance is considered a misdemeanor and is punishable by fines, jail time, and driver's license suspension. If an uninsured driver is involved in an accident, they face additional consequences, including being disqualified from suing the at-fault driver for compensation.

Disqualification from Suing the At-Fault Driver

If a driver is operating their vehicle without insurance and is involved in an accident, they are barred from suing the at-fault driver for pain and suffering compensation, even if they are completely innocent. This restriction is outlined in Michigan's auto No-Fault law (MCL 500.3135(1) and (2)(c)).

Loss of No-Fault Benefits

Uninsured drivers involved in an accident are also disqualified from receiving No-Fault benefits, which typically cover medical expenses and lost wages due to an inability to work. This means they will have to pay out of pocket for their medical bills and bear the financial impact of lost income.

Personal Liability for Damages

In addition to losing the right to sue and claim benefits, uninsured drivers involved in an accident may be held personally liable for the other party's damages. This includes medical bills, lost wages, and vehicle repair costs. The financial burden can be significant, especially if the other party suffers severe injuries or extensive property damage.

Legal Consequences

Driving without insurance in Michigan carries legal penalties, including fines ranging from $200 to $500 and potential jail time of up to one year. Additionally, a driver's license suspension may be imposed, and vehicle registration privileges may be restricted until proof of insurance is provided.

Impact on Insurance Rates

If an uninsured driver is involved in an accident, their insurance rates are likely to increase significantly when they eventually obtain insurance. Insurance companies consider driving without insurance as a high-risk behaviour and will typically classify such drivers as high-risk, resulting in higher premiums.

Seeking Legal Assistance

Given the complex nature of auto accident lawsuits and the severe consequences of driving without insurance, it is advisable to seek legal assistance from experienced car accident lawyers. They can guide individuals through the legal process, help them understand their rights, and navigate the specific circumstances of their case.

Suing a negligent driver

If you've been in a car accident in Michigan, you may be able to sue the person who caused the accident if they were fully or partially at fault. The most common types of negligence that cause traffic crashes are speeding, running red lights, and rear-end collisions. Auto accidents are also commonly caused by driver distraction, such as texting or talking on a cell phone, and drunk driving.

You can sue a negligent driver that causes an accident that results in physical injury and psychological harm to you. These lawsuits are referred to as "bodily injury" cases and demand monetary compensation for the harm caused by the at-fault driver. Settlements include damages for your physical pain and suffering, mental anguish, and loss of income and earnings.

In addition to suing the driver, there may be other people or companies you can sue as well. For example, if the at-fault driver was using someone else's vehicle, you can sue the vehicle owner under the Michigan Owner's Liability Statute. This statute holds the vehicle owner liable if another person is using the vehicle with the owner's consent and permission. If the negligent driver was working at the time of the crash, you can also sue their employer, as companies and corporations usually have much higher auto insurance policy limits to pay settlements to injury victims.

To sue a negligent driver in Michigan, you must have suffered a "serious impairment of an important bodily function" to make a claim for pain and suffering damages. A person almost always qualifies to sue if the injury involves broken bones, herniated discs, or a traumatic brain injury. A person who suffers a bad scar or serious permanent disfigurement also qualifies to sue.

To prove a "serious impairment," attorneys will use your medical records and your testimony about how your injuries have impacted your life. In addition to monetary compensation for your physical injuries, you can sue for emotional distress as part of your damage claims. Symptoms of emotional distress include anxiety, depression, and the inability to work or engage in recreational activities.

If you were injured as a vehicle operator or passenger, you can sue the driver of the other car or the driver of the vehicle you were in if that person was totally or partially at fault for the accident. In some cases, you may be able to sue both drivers if there is a dispute between them as to who caused the crash. If you were a bicyclist or pedestrian hit by a car or truck, you can sue the negligent driver and vehicle owner for your injuries.

In Michigan, your vehicle must be insured at the time of the accident for you to make a bodily injury claim. However, if you are driving someone else's uninsured vehicle, you can still sue for damages. The law requires only that the owner of the vehicle being driven at the time of the crash has active auto insurance. This requirement does not apply to passengers, bicyclists, or pedestrians.

If the at-fault driver was driving an uninsured vehicle, you may still be able to file a claim under your own insurance policy. Most insurance policies provide uninsured motorist coverage, and you can make a claim for this coverage if you are hurt by someone without insurance.

When you hire a car accident lawyer to bring an auto negligence claim against the at-fault driver, you can ask for two types of damages: non-economic damages, which include pain and suffering and other quality-of-life losses; and excess economic loss damages, which include certain out-of-pocket expenses not paid by PIP benefits.

To bring an auto negligence claim for these damages, strict requirements must be met, so it's important to have an experienced lawyer by your side. The first requirement for bringing a car accident lawsuit in Michigan is that you must be able to show that the other driver was at fault for the crash. Even if you were partially responsible for the accident, you may still recover damages, but the amount will be reduced by the percentage of your own fault. This is referred to as "comparative fault."

When seeking non-economic damages, in addition to showing that the other driver was negligent, Michigan law requires you to show that your injuries are "serious enough" to bring the claim. This "serious enough" component is commonly known as a "threshold injury" and is defined as a "serious impairment of body function," "permanent serious disfigurement," or death.

There may also be significant claims that could be pursued against the at-fault driver for economic damages for medical expenses and lost income that is not covered under the injured person's no-fault insurance coverage.

Suing for pain and suffering

In Michigan, you may be able to sue for pain and suffering after a car accident. However, the law for suing for pain and suffering is complicated. Car accidents in Michigan fall under the Michigan No-Fault Law, which is a series of rules that explain the benefits injury victims are entitled to following a crash.

To receive pain and suffering compensation, the victim must prove four basic elements:

• The victim has to prove another motorist was at least 50% at fault for causing the accident.
• The victim must demonstrate they were injured in the car accident, with injuries clearly documented by hospital and doctor's notes.
• The victim must show that their injuries were caused by the car accident and not by something else.
• Under Michigan law, the victim must have sustained a certain type of injury. Section 500.3135(1) of the No-Fault Law states that an injured person can only receive non-economic compensation "if the injured person has suffered death, serious impairment of body function, or permanent serious disfigurement."

The most common threshold injury is "serious impairment of body function," which is defined as "an objectively manifested impairment of an important body function that affects the person's general ability to lead a normal life." This type of case involves all car accidents that do not involve death or permanent serious disfigurement, such as loss of limbs or horrible scarring.

In addition to the above, there are other important considerations when suing for pain and suffering in Michigan:

• There is no monetary limit on how much you can sue an at-fault driver for in terms of pain and suffering compensation, excess wage loss, and medical benefits. However, your recovery may be limited by the at-fault driver's liability coverage.
• You have three years to file a lawsuit against the wrongdoer driver's insurance company for pain and suffering damages.
• You can sue a negligent driver that causes an accident resulting in physical injury and psychological harm to you. Settlements include damages for physical pain and suffering, mental anguish, and loss of income and earnings.
• You can also sue for emotional distress as part of your damage claims, including symptoms such as anxiety and depression.
• If you were a passenger in the vehicle, you can sue either the driver of the other car or the driver of the vehicle you were in if they were totally or partially at fault for the accident.
• If the at-fault driver was uninsured, you can sue that person for the full amount of the repairs or replacement of your vehicle.

Mini-tort law

In Michigan, a mini-tort law allows a person to seek limited compensation for property damage from the at-fault driver if they are involved in a vehicle accident they did not cause. It is important to note that a mini-tort claim only covers vehicle repair costs and not injuries. If a person sustains physical or emotional harm due to the accident, they will need to file a separate claim.

Under Michigan's auto insurance law, a person can sue another driver and file a mini-tort claim. If the damage to their vehicle exceeds their insurance coverage and the other driver is found to be more than 50% at fault, a mini-tort claim can help cover their deductibles. The amount of compensation will depend on the drivers' "faults". The at-fault driver, deemed more than 50% responsible for the accident, will pay for most of the damage, while the other driver will be responsible for the remaining cost.

To file a mini-tort claim in Michigan, the following criteria must be met:

• The vehicle is damaged.
• The other driver is more than 50% at fault for the accident.
• Michigan's no-fault insurance covers the vehicle.
• The damage to the vehicle exceeds or isn't part of the insurance coverage.

It is important to note that there are several conditions that can disqualify a mini-tort claim, including failing to identify the at-fault driver and proving that the claimant was more than 50% at fault for the accident. Additionally, a mini-tort claim cannot cover medical costs, loss of wages, and other non-vehicular damages. The maximum amount that can be claimed under a mini-tort claim in Michigan is $3,000.

The process of filing a mini-tort claim in Michigan involves the following steps:

• Collecting all the necessary information related to the accident, including the name and address of the driver, the vehicle's model and registration number, the driver's insurance agency and policy number, and photographs of the accident scene and vehicle damage.
• Obtaining a written estimate of the vehicle damage from an authorized repair shop, including all necessary repairs and costs.
• Reviewing the insurance policy to ensure eligibility to file a mini-tort claim. In some cases, the insurance policy may cover the entire repair cost even if the other driver is at fault, especially if there is broad collision coverage.
• Informing the at-fault driver of the intention to file a mini-tort claim and providing them with the repair estimate and payment request.
• If the at-fault driver has limited property damage liability coverage, their insurance company will evaluate the provided documents and pay the claim. If they refuse or offer an insufficient amount, further negotiation may be necessary. Alternatively, the at-fault driver can agree to pay for the damages directly without involving insurance companies.
• If negotiations fail, a lawsuit can be filed in a small claims court against the at-fault driver. Small claims courts handle disputes involving smaller amounts of money without the need for expensive legal representation.

It is important to act promptly, as the statute of limitations for a mini-tort claim in Michigan is generally three years from the accident date. After this timeframe, the opportunity to recover damages for the vehicle may be lost.

Frequently asked questions