Michigan No Fault Insurance – What Is It and How Does It Work?

Hopefully you just watched this informative video and learned a thing or two.  We get questions regarding no-fault law all the time and even Michigan residents are still unsure how it works.  This surprises us and we wanted to create a post to clear the air.  Michigan is unlike most other states in many regards.  It doesn’t mater who is at fault for the accident, because you will actually end up “suing” your own auto insurance company.  They will provide what is called first party benefits which include medical expenses, attendent care, medical mileage, lost income, etc.  In order to recover the damage to your own vehicle, you need to purchase additional collision coverage.  If you do not have collission coverage, you will only be able to recoup up to $1000 of the damages by filing a Michigan Mini-Tort Claim.  If you would like to pursue additional damages such as pain and suffering, you will be required to file what is called a 3rd party lawsuit.  Here you will be suing the insurance of the driver at fault and you will also have to prove significant injuries.  The law makes filing a 3rd party lawsuit extremely difficult and you will need an experienced attorney to help you for this.  While this law is complex and confusing, it does instill basic coverage regardless of who is at fault for the accident and makes serious injuries less devastating to all those involved.

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