Car Accident Laws in Michigan
Michigan’s car accident laws have gone through major changes in recent years, especially with reforms to the state’s no-fault insurance system. If you’ve been involved in a crash in Detroit, Grand Rapids, or anywhere else in Michigan, it’s important to understand how the law affects your ability to recover compensation. This guide outlines the most important aspects of Michigan car accident law, including fault rules, insurance requirements, and when you can file a lawsuit.
Michigan Is a No-Fault State With Optional Limits
Michigan operates under a no-fault insurance system, meaning your own Personal Injury Protection (PIP) coverage typically pays for your medical expenses and lost wages, no matter who caused the crash. However, major reforms in 2020 allowed drivers to choose how much PIP coverage they want to carry.
Available PIP coverage levels include:
- Unlimited lifetime benefits (default)
- $500,000 limit
- $250,000 limit
- $50,000 (Medicaid-eligible drivers only)
- Opt-out (if you have qualified health coverage)
Even under no-fault rules, you can still sue the at-fault driver in serious cases.
When Can You Sue the At-Fault Driver?
In Michigan, you may step outside the no-fault system and file a liability claim against the other driver if you suffer a “serious impairment of body function”, permanent serious disfigurement, or death. You can also file a lawsuit for excess medical expenses and wage loss not covered by your PIP policy.
Pain and suffering damages are only available when your injuries meet the legal threshold for a serious injury.
Michigan Uses Modified Comparative Fault
Michigan follows a modified comparative fault system with a 50% bar. This means you can recover damages if you are 49% or less at fault for the accident. However, your compensation will be reduced based on your percentage of fault.
If you are 50% or more responsible for the crash, you cannot recover compensation for non-economic damages like pain and suffering.
Minimum Car Insurance Requirements in Michigan
Michigan drivers must carry the following minimum auto insurance coverage:
- $50,000 for bodily injury per person
- $100,000 for bodily injury per accident
- $10,000 for property damage (outside Michigan)
- PIP coverage based on your selection
- Property Protection Insurance (PPI) of up to $1 million (covers damage to other people’s property in Michigan)
Uninsured and underinsured motorist coverage is optional but strongly recommended.
Statute of Limitations for Car Accident Claims
You have three years from the date of the accident to file a personal injury or property damage lawsuit in Michigan. This includes lawsuits against another driver for pain and suffering or excess medical costs.
If you are filing a claim against your own insurance company for PIP benefits, you must do so within one year of the accident.
Crash Reporting Requirements in Michigan
Michigan law requires you to report a crash if:
- Someone was injured or killed
- Property damage is $1,000 or more
You must call law enforcement immediately and remain at the scene. A police report is often essential when filing a claim or lawsuit.
What If the At-Fault Driver Is Uninsured?
Michigan does not require uninsured motorist (UM) or underinsured motorist (UIM) coverage, but many drivers include it in their policies. If you’re hit by an uninsured driver and you don’t have UM/UIM coverage, you may have limited options unless you qualify for compensation through the Michigan Assigned Claims Plan.
UM/UIM coverage helps fill the gap when the at-fault driver has no insurance or not enough to cover your damages.
What Damages Can You Recover?
If your injuries are severe and you file a liability claim, you may be eligible to recover:
- Excess medical expenses not covered by PIP
- Lost wages beyond PIP limits
- Pain and suffering
- Emotional distress
- Vehicle and property damage
Economic losses like medical bills and wage loss are covered first by PIP, then potentially through a lawsuit.
Do Passengers Have Coverage Under No-Fault?
Yes. In most cases, passengers are covered under the vehicle owner’s PIP policy. If that’s not available, coverage may come from the passenger’s own auto insurance policy or through the Michigan Assigned Claims Plan.
If the passenger suffers serious injuries, they may also be able to file a third-party claim against the at-fault driver.
Why You May Need a Lawyer
Michigan’s car accident laws are more complicated than in most other states, especially after the 2020 insurance reform. An experienced car accident attorney can help you navigate your PIP benefits, determine if you can sue, and fight for the compensation you deserve. Legal representation is especially valuable when insurers deny or delay benefits.