Auto Accidents

"I WAS DRIVING MY CAR, CAREFULLY, WHEN I WAS SUDDENLY STRUCK BY ANOTHER CAR. THE ACCIDENT WASN'T MY FAULT, MY CAR WAS RUINED, AND I WAS HURT!! WHAT CAN I DO?"

THE 5 MOST COMMONLY ASKED QUESTIONS ABOUT YOUR RIGHTS UNDER MICHIGAN'S "NO FAULT" AUTO INSURANCE LAW.

WHO WILL PAY FOR THE DAMAGE TO MY CAR?

You can only sue the other driver or owner for $500.00 or your collision insurance deductible, whichever is less. This means that if you have no collision coverage or more than a $500.00 deductible, your recovery is limited to $500.00. You may not sue the other owner or driver for the loss of use of your car or for a rental car. You must buy that coverage from your own insurance company. If you bought the "mini-tort" coverage, your company may waive the deductible if the other driver was substantially at fault for the accident.

WHO PAYS FOR MY MEDICAL EXPENSES AND LOST WAGES?

This is the "No Fault" part of the No Fault law.

Each injured person, regardless of fault, must file a claim against their own auto insurance for lost wages, medical expenses and replacement services. The amount of coverage available depends on the policy owned by the person claiming benefits. Replacement services are the hiring of someone to do those jobs the injured party would have done around the house, if not injured.

There are basically three (3) types of coverage for the medical benefits:

(1) Full Coverage. Both the auto insurance and the health insurance may be required to pay for medical benefits; also the income replacement insurance and the auto insurance may be required to pay lost wage benefits.
(2) Coordinated Benefits. The injured party first must claim against the medical insurance and the income replacement insurance coverage; anything not paid by those sources must be submitted to the auto insurance company. The auto insurance is also coordinated with Worker's Compensation benefits, or any other coverage available to the claimant, whether or not that person seeks the other benefits.
(3) Deductible Coverage. The auto insurance must pay all of the available benefits, after a $300.00 deductible has been met by the claimant.

The claimant must promptly notify the insurance company of the accident. The company must promptly furnish the claimant with an Application For Benefits. The form must be completed and returned to the insurance company, retaining a copy for the claimant. Copies of all reports and bills must be sent to the insurance company for payment or reimbursement, with copies being retained by the claimant in event of loss.

In order not to waive any rights, the claimant must file the Application For Benefits within a year of the accident, and file suit against the insurance company for all benefits not paid, within one (1) year of being incurred or rejected by the insurance company. If it is proven that the insurance company was wrong for withholding or delaying payment of a benefit, the company will be charged for the claimant's actual attorney fees, plus costs and interest, in addition to the benefits due.

The law provides for a means of furnishing insurance coverage to qualified, injured persons, such as passengers in uninsured vehicles, pedestrians, or bicyclists.

Subject to the deductible or coordinated benefits, the auto insurance company is liable for all reasonable and necessary expenses whenever incurred; for 85% of the average weekly wages for up to three (3) years; and for up to $20.00 per day for up to three (3) years for replacement services.

"I GOT SOME INJURIES IN THE ACCIDENT. I WAS STIFF AND SORE FOR SEVERAL WEEKS AND I RECEIVED SOME CUTS AND BRUISES. I'M STILL HAVING DIFFICULTY DOING THINGS AT WORK AND AROUND THE HOUSE, AND MY SPORTS AND SOCIAL ACTIVITIES ARE AFFECTED. CAN I SUE THE OTHER DRIVER FOR MY PAIN AND SUFFERING?"

Yes, you can sue the other driver. However, the law imposes a threshold on your injuries that you must overcome in order to collect.

Whether you seek to collect from the other owner's or driver's insurance, or from your own uninsured motorist coverage if the other parties were not insured, your injuries must result in:

                    (a)    a serious impairment,
                    (b)    a serious, permanent disfigurement, or,
                    (c)    death.

If you are not seeking to collect from an insurance company, but are suing the uninsured owner or driver directly, you may sue for your medical expenses, wage losses and for all of your injuries, no matter how slight. Obviously, the problem will be in collecting any money from that uninsured driver or auto owner. As a result, it is recommended that Uninsured and Under-Insured Motorist Coverage be purchased and included in your own insurance.

Upon determining that the other driver (and/or owner) was uninsured, a claim must be made against your own Uninsured Motorist coverage, in the manner and time limits required by your own policy of insurance. The benefits to which you may be entitled will be set out in your insurance policy.

"WHAT IS A 'SERIOUS IMPAIRMENT OF BODY FUNCTION' OR A 'SERIOUS PERMANENT DISFIGUREMENT'? IF THE ACCIDENT WASN'T MY FAULT, WHY DOES IT MATTER?"

Obviously, the law was designed to protect the insurance companies that write the auto insurance in the State of Michigan. The law doesn't address fault, and it does not consider the non-economic impact of an accident on an injured party. It simply tries to minimize the financial payments of insurance companies. Minor injuries do not entitle you to compensation for pain, suffering or other losses.

A serious impairment of body function is an injury which has a severe effect on the quality of one's life or life style. Each case is considered separately, to determine if it reaches the required level. Pain alone is not the measurement; the medical condition must be objectively manifested. That means, it requires muscle spasm, or x-ray findings, or positive diagnostic or laboratory test results to confirm the condition. The injured person must be able to describe how the condition affects their day-to-day life and to explain the adverse changes in their life style.

A serious, permanent disfigurement is a scar or other disfigurement, the effect of which can be described by the injured person as causing them great upset.

The judge must decide if the injuries exceed the threshold requirements. It must be stressed that the "badness" of the wrongdoer does not count in deciding whether or not you satisfy the no-fault thresholds. It is strictly the nature and extent of the injuries and their affect on your life and lifestyle.

SUMMARY

Ostensibly, the No-Fault law was designed to provide all injured persons with basic protection, regardless of fault. The part of the law that addresses itself to compensating the injured party for the pain and suffering of having their life affected or impaired has been changed drastically. Injured persons still have the right to seek compensation for pain and suffering, however to do so successfully requires the skill of an experienced attorney and the cooperation of a concerned healthcare provider.

It should be noted that if the owner of an uninsured vehicle drives the vehicle and is involved in an accident, he/she is not entitled to any recovery.