In 1973, Michigan adopted a No-Fault Insurance Act which makes an individual driver's insurance company primarily responsible for paying for the driver's own vehicle damage, medical costs, rehabilitative expenses, wage losses, property damage and replacement services. An individual or an individual's family may sue the other driver who was at-fault for the accident only if the individual's injuries cause death, permanent serious disfigurement, or serious impairment of a body function. If this threshold of injury or death occurs, then the at-fault-driver's insurance company will be responsible for paying wrongful death benefits, pain and suffering compensation, and/or economic damages that exceed statutory maximums.
How do you know whether your injury will be considered a serious impairment of bodily function?
The No-Fault law defines it as "an objectively manifested impairment of an important body function that affects the person's general ability to lead his or her normal life." Michigan Compiled Laws 500.3135(7). The question of whether your injury reaches this level will be decided by the judge in each case.
Is there a time limit?
A person involved in an auto accident should give written notice to his/her insurer of the accident and all known damages and expenses as soon as possible after the accident. Never wait more than a year to give written notice or benefits will be lost. Additionally, once a written claim is made, a driver needs to keep his/her insurance company informed of any additional medical costs incurred, additional wages lost, or any other additional damages because the no-fault law will allow the insurance company to limit the benefits it has to pay if they were not originally reported and are more than one year old.
A lawsuit against an at-fault-driver for death benefits, pain and suffering compensation, and /or economic damages that exceed statutory maximums may be filed up to three years from the accident's date.
What if your insurance company denies your claim?
Sometimes a driver's own insurance company will refuse to pay all the benefits that a driver claims, or the insurance company will dispute the validity of a particular claimed loss. If this occurs, then the driver can sue his or her own insurance company for breach of contract. The No-Fault Insurance Act provides that an insurance company which unjustifiably fails to pay no-fault benefits or delays paying benefits must pay the driver's attorney fees and costs incurred in bringing a lawsuit.
If a driver is not more than 50% at fault for the accident, that driver may sue the other driver personally for up to $500.00 worth of vehicle damage in small claims court. These lawsuits are called "Minitort" lawsuits and are the exception to the No-Fault Insurance Act's bar against suing the other at-fault driver when there are no serious injuries caused by the accident. A Minitort lawsuit is usually brought to recover the cost of a driver's deductible fee charged by his or her insurance company.
What if the accident involved a motorcycle or snowmobile?
If a motorcycle or snowmobile is the only vehicle involved in an accident, then the No-Fault Insurance Act does not apply to the accident because the Act does not define motorcycles or snowmobiles as "motor vehicles." However, when a motorcycle or snowmobile is involved in an accident with a "motor vehicle," as defined by the act to mean a car, truck, trailer, or other four-wheeled-vehicle designed for highway use, then the No-Fault Act does apply, and benefits can be recovered under the Act.
What you should do after an accident:
The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation.
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