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How does Michigan’s no-fault policy impact my accident claim?

Grand Rapids, MI – Michigan is one of the few states with no-fault insurance, which means that you can recover damages under and accident claim even if you were to blame for it. While this is beneficial if you were involved in a minor accident, it can make things more complicated if you were injured in a serious crash. As a rule, if you were in a serious crash, you should talk to an experienced Grand Rapids car accident lawyer as soon as possible to understand what your rights are.

Two types of car accident claim available in Michigan

First party claim

All drivers in Michigan are required to carry Personal Injury Protection (PIP) insurance so if they’re ever in a car accident they can turn to their insurer for damages, even if they were completely at fault for what happened.
Here is what you can recover under your PIP:

  • Medical bills not covered by health insurance
  • Lost wages
  • Replacement services (this refers to the duties you used to perform but can no longer do so following your accident and you must someone else for them)
  • Nursing care.

All this looks very good on paper, but in reality, things might not be so great if you have minimum PIP.
Under Michigan law, the minimum PIP is $50,000 in bodily injury liability per person and $100,000 for bodily injury liability per accident.
This means that if you are injured in a car crash, $50,000 should cover all your medical expenses and your lost wages. For minor injuries, that should work, but if you suffered severe injuries like brain trauma, spine damage, burns, or broken bones, your PIP coverage won’t certainly be enough.

Third-party claims

In Michigan, you can file a third-party lawsuit against the other driver only if you have what is known as a threshold injury (serious impairment or disfigurement). The aim of this law was to reduce the number of frivolous lawsuits, which it did, but it can be very frustrating to accident victims.
If you’ve already used your PIP, you’d better talk to a good lawyer in Grand Rapids about suing the at-fault driver. Your lawyers will have to gather proof that your injury meets the threshold and they will also have to build a case against the other driver.
Once you file a third-party lawsuit you step outside the no-fault policy. You’ll have to prove that it was a case of negligence to file a personal injury lawsuit. Also, keep in mind that Michigan follows a modified comparative negligence doctrine. If it is determined you were 51% or more to blame for the crash, you cannot recover damages.
Under a third-party claim you can seek compensation for your:

  • Medical expenses (not covered by your PIP)
  • Lost wages (also not covered by your PIP
  • Replacement services
  • Pain and suffering.

This is very important. Under PIP, you cannot claim pain and suffering damages, which can be quite considerable if you sustained a severe injury. It is in your best interests to find seasoned accident attorneys in your area to help  you put a figure on your pain and suffering. You need to know how much money your claim is worth before filing a claim against the other driver’s insurance or suing them. Under Michigan law there is no cap on pain and suffering damages for car accidents, so the compensation awarded will depend on the severity of your injuries and the skill of your lawyer in building a convincing case.