Does no-fault insurance prevent lawsuits after a Michigan crash?

On Behalf of Holmes & Wiseley, P.C.

Drivers in Michigan are required to carry no-fault insurance in addition to basic liability coverage. No-fault personal injury protection (PIP) coverage means that anyone injured in a collision can use their personal insurance policy after a crash instead of relying on the insurance coverage of anyone else who may have caused the wreck.

This approach can protect people from situations in which someone causes a crash and then does not have sufficient insurance coverage to reimburse others. The no-fault injury coverage required by Michigan state law protects people by guaranteeing that they will have access to insurance for bodily injuries suffered in a crash regardless of the insurance status of the other driver. However, many people understandably want to hold the driver at fault for a crash personally responsible in addition to seeking insurance benefits.

People can hold at-fault drivers accountable in court

Michigan law may require more robust insurance than the rules in other states, but insurance coverage does not eliminate the possible need for civil litigation. So long as one driver is at least 50% responsible for the crash or more, the people injured in the collision could take legal action against the party at fault for the wreck.

The liability coverage available under a standard Michigan insurance policy isn’t as generous as the no-fault coverage can be. Many drivers carry just $20,000 in residual bodily injury coverage. That won’t be nearly enough to pay for the care required to treat brain injuries, back injuries or other major medical issues following a crash. If someone’s injuries are serious enough to impair bodily function, they may have grounds for a personal injury lawsuit after a wreck.

Generally, there will need to be losses related to the crash that exceed what insurance will cover. Especially if the person at fault for the crash does not have appropriate liability coverage and the party who didn’t cause the wreck has significant injuries, a lawsuit may be the only means of ensuring the appropriate party bears financial responsibility for the wreck.

Seeking legal guidance to better understand available options after a West Michigan car crash can help crash victims to better understand how they can pay their hospital bills and repair their vehicles.

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