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How Michigan’s vehicle insurance rules can impact my case

Going through a car accident can cause unnecessary stress, pain and expenses. Taking the time to seek justice through an insurance claim and possibly a lawsuit may lead to compensation and closure.

The amount an individual can recoup after a crash becomes more understandable by reviewing state laws. Read the breakdown of Michigan’s no-fault policy below to learn who is responsible for costs after a collision.

What insurance requirements exist?

In the state of Michigan, vehicle owners are required to purchase a no-fault policy. There are three components to these policies.

The first is personal injury protection or PIP. PIP is two-fold — post-accident, it covers vital medical expenses for life as well as wage loss and replacement for a maximum of three years from the accident date.

The second is property protection or PPI. Under PPI, a maximum of $1 million is available to cover damage your vehicle causes to someone else’s property. This includes damage to surrounding structures or parked cars that abide by all local laws.

The last part is residual bodily injury and property damage liability or BI/PD. When a policyholder causes a crash, they take care of damages with the minimum BI/PD limits. Statewide, these limits are known as 20/40/10 — $20,000 for each person facing injuries or death, $40,000 in crashes involving multiple people facing injuries or death and up to $10,000 for property damage that happens outside of the state.

Under the no-fault policy, your coverage is meant to take care of accident-related costs. But in cases of extreme catastrophe, more options may be available.

When is a lawsuit justified?

So, what happens when it seems like your own insurance isn’t enough to cover the damage done? Under the no-fault policy, you typically can’t sue anyone with up-to-date insurance, unless:

  • They caused death or serious injuries, like permanent disfigurement
  • You are a non-resident who owns a vehicle registered outside of Michigan
  • The crash happens out of state
  • You are seeking $1,000 or less to cover car damage they caused (not covered by insurance)

Since each case is as unique as the drivers involved, it’s essential to direct specific questions about your situation to a personal injury attorney with your best interests in mind.