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Understand Your Michigan No-Fault Rights

by Enrico Schaefer

THE BASICS: I was in a Michigan automobile, car, truck or bus accident. What
should I do?

1. Don’t sign anything given to you by an insurance company without
consulting a Michigan automobile accident lawyer first. Insurance companies
don't represent your interests. Your best decision is to educate yourself
about your legal rights and speak to an attorney. You may have to sue to obtain
the money to which your are entitled.

2. Document your injuries early, get competent medical treatment and take
photographs in the hospital, or when you get home.

3. Don’t be fooled by insurance adjusters who pretend to represent your
interest. They will often attempt to convince you to sign papers and take
settlement offers which are well below the compensation to which you are
entitled

Michigan is a 'no-fault' insurance state. The laws that govern Michigan
automobile accidents are very complex but essentially involve First-Party
Benefits and Third-Party Benefits.

FIRST PARTY CLAIMS:

First-Party benefits are payable to anyone who suffers an injury arising out of
the ownership, operation, maintenance or use of a motor vehicle as a motor
vehicle. Michigan auto accident first-party claims are made to a claimant's own
no-fault insurer. The claimant's insurer, by thhe terms of the insurance
contract and under the no-fault law, must pay no-fault benefits for expenses
resulting from the automobile, truck, bus or motorcycle accident. First-party
auto accident coverage inludes reimbursement for medical expenses, wage loss,
replacement services, mileage, survivor's loss, funeral expenses, and attendant
care.

THIRD PARTY CLAIMS:

The third-party claim compensates a person injured in an auto accident for
damages, such as his or her past, present, and future non-economic losses and
any excess economic losses if applicable. A third-party plaintiff is not
entitled to sue the negligent driver for compensation for any economic damages
which have already been paid or are owed by the plaintiff's own first-party
insurance company.

Michigan auto accident third-party claims involve automobile negligence claims.
In a third-party claim, a plaintiff sues the driver or owner of a vehicle,
alleging negligence causing an auto accident injury. If the driver or owner of
the vehicle has no-fault insurance, the person injured in the auto accident may
sue him or her for certain damages such as pain and suffering, as long as the
claimant's injuries meet the threshold requirement of death, permanent serious
disfigurement, or serious impairment of body function. The plaintiff may also
sue for any economic losses resulting from the auto accident that exceed the
statutory no-fault maximum amount. Claims cannot be made for loss of earning
capacity.

Since no-fault PIP benefits often do not fully compensate auto accident victims
for all of the economic damages they sustain, the liability claim is oftentimes
the only way a victim can recieve all of the economic damages they have
suffered. If a person sustains a serious injury in a motor vehicle accident
caused by the fault of another driver, the injured person should contact an
attorney about pursuing a lawsuit for excess economic loss and non-economic
losses and damages.

If you or someone you know has been in a car accident, you should contact an
attorney to make sure you fully understand your rights.

About the Author
Enrico Schaefer is an attorney practicing in Traverse City, Michigan. More
information about Michigan no-fault can be found at
http://tcattorney.typepad.com/autoaccident/. Information about other Traverse
Legal practice areas can be found at http://www.tcattorney.typepad.com
and http://www.traverselegal.com.

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