The Impact of Michigan’s No-Fault Laws on Third-Party Car Accident Claims

Rear-end car collision between a sedan and SUV

Michigan’s no-fault laws can limit the right of a car accident victim to sue the negligent party for injuries. Although no-fault laws are aimed to make the court system more efficient, they can have an effect on your third-party claim after an automotive accident.

What are “No-Fault” Laws?

In Michigan, all drivers are required to have no-fault car insurance, also known as personal injury protection or PIP. If you are in an accident, your liability insurance is required to pay for the other party’s injuries, including damages your car may have caused to someone else’s property. However, PIP covers the injuries of you and your passengers.

What This Means for Third-Party Claims

According to Michigan’s law, there is a “liability threshold” for recovering non-economic damages through a third-party claim. If a person is seeking non-economic damages, they are only eligible to sue if their injuries caused a severe disability or impairment in their life.

For example, if your PIP policy covers $500,000 and your severe injuries result in losses of around $700,000, you will need to file a third-party claim to receive the remaining $200,000. With a third-party claim, a person must prove both negligence and liability on the other party's part, which may be challenging. To receive the compensation you deserve, it’s suggested to speak with a personal injury attorney.

Michigan Car Accident Attorneys

Despite no-fault laws being beneficial to accident victims for the most part, sometimes the compensation a person receives just isn’t enough. If you’re in need of assistance when it comes to filing a third-party claim, the Grewal Law PLLC team is here to help. We are familiar with complex claims and are here to answer all of your car accident-related questions at your earliest convenience.

To get in touch with an attorney, call us at (888) 211-5798 or visit our Contact Us page to fill out a consultation request form.

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