Michigan Auto Accidents

Auto accidents in Michigan give rise to three legally distinct claims, each governed by different laws:

First-party claims for No-Fault Personal Injury Protection (PIP) benefits;
Third-party liability claims against negligent drivers for noneconomic and excess economic damages;
Underinsured/Unindered Motorist claims, which supplement the insurance limits of a negligent driver.

These systems operate differently and provide distinct rights to recourse following an automobile accident in Michigan. Below is a clear, general overview designed to help injured Michiganders understand their rights under the Michigan No-Fault Act, MCL 500.3101 et seq.

I. FIRST-PARTY NO-FAULT CLAIMS (PIP BENEFITS)

Michigan’s No-Fault System: A Complex and Evolving Statutory Scheme

Michigan’s No-Fault Act was created in 1973 and has been amendended several times, with the most recent significant amendments in 2019 and again in 2021, resulting in sweeping changes to the system. Because the statute is both dense and frequently litigated, injured persons should not assume their rights based solely on general summaries. What follows is a simplified overview of the benefits most meaningful to crash victims.

Who Is Entitled to Michigan No-Fault PIP Benefits

PIP benefits are generally available to Michigan residents injured in a motor vehicle accident, subject to statutory priority rules. Out-of-state residents are typically not eligible unless they own and register a vehicle in Michigan.

The basic qualifying requirement is involvement in an accident “arising out of the ownership, operation, maintenance, or use of a motor vehicle as a motor vehicle.” See MCL 500.3105(1). “Motor vehicle” is defined as a vehicle, including a trailer, that is operated or designed for operation on a public highway by power other than muscular power and has more than two wheels. Motor vehicle does not include any of the following:

(i) A motorcycle.
(ii) A moped.
(iii) A farm tractor and other limited implements of husbandry
(iv) An ORV.
(v) A golf cart.
(vi) A power-driven mobility device.
(vii) A commercial quadricycle.
(viii) An electric bicycle.

What No-Fault Benefits Provide

Under MCL 500.3107 and related sections, eligible injured persons may receive:

Medical Expenses: Allowable expenses reasonably necessary for care, recovery, and rehabilitation, subject to post-2019 fee schedules.
Wage Loss: Payable for up to three years after the accident, generally at 85% of gross income. MCL 500.3107(1)(b).
Replacement Services: Up to $20/day for household tasks the injured person cannot perform. MCL 500.3107(1)(c).
Attendant Care: Family-provided care is subject to limitations added in 2019 reform unless exemptions apply.
Mileage/Reimbursement: Transportation for medical care and related needs.

These benefits are not fault-based; entitlement does not depend on who caused the crash.

Priority of Insurance & the Michigan Assigned Claims Plan (MACP)

Michigan’s priority rules determine which no-fault insurer must pay. The hierarchy is governed by MCL 500.3114 and MCL 500.3115. In general:

Your own auto insurer is first in priority.
If uninsured, you may claim through a resident relative’s insurer.
If no household coverage exists, the claim shifts to the Michigan Assigned Claims Plan (MACP) under MCL 500.3171 et seq.

The MACP provides limited PIP benefits, typically capped at $250,000 unless exceptions apply.

Time Deadlines: The One-Year Notice and One-Year-Back Rules

Michigan imposes strict timelines:

One-Year Notice Rule – MCL 500.3145(1):
A claimant must provide written notice of injury to the insurer within one year of the accident.

One-Year-Back Rule – MCL 500.3145(2):
A lawsuit does not allow recovery of PIP benefits incurred more than one year before filing.

These deadlines are enforced rigorously. Courts consistently apply them as strict limitations on recovery, e.g., Devillers v Auto Club Ins Ass’n, 473 Mich 562 (2005).

Exclusions to No-Fault Benefits

No-fault benefits can be denied when:

The injured person unlawfully took a vehicle without permission (MCL 500.3113(a)).
The person was the owner or registrant of an uninsured vehicle involved in the accident (MCL 500.3113(b)).
The person was using a vehicle as part of a commercial or transportation-for-hire service without proper coverage (post-2019 amendments).
The person was not a Michigan resident and uninsured in a non-resident scenario.
The subject policy lapsed or was cancelled (see more information here).

II. THIRD-PARTY LIABILITY CLAIMS

When a negligent driver causes an accident, an injured person may pursue a third-party claim. Unlike PIP claims, these actions are governed by Michigan’s tort law and require proof of fault.

The Threshold Injury Requirement

To bring a claim against a negligent driver in Michigan for noneconomic damages, a plaintiff must establish a threshold injury has been sustained, which is defined as: (1) death, (2) serious impairment of body function, or (3) permanent serious disfigurement. The definition is set forth in MCL 500.3135(1) & (5) and incorporates language from prior cases intpreting the pre-amendment statute (See, e.g., McCormick v Carrier, 487 Mich 180 (2010) intrpeting the “serious impairment of body function” threshold language).

Without meeting the legal threshold, a plaintiff cannot recover pain and suffering damages from a negligent driver. Therefore, a diligent anaylsis must be conducted regarding the claimant’s injuries to establish the legal threshold requirement.

Proving Negligence: Duty, Breach, Causation, Damages

To succeed in a third-party claim, the injured person must prove:

Duty — Drivers owe a duty to operate vehicles with reasonable care and pursuant to traffic laws.
Breach — A violation of traffic laws or unsafe driving conduct often satisfies breach (e.g., speeding, rear-end collisions, failure to yield).
Causation — Both factual and proximate cause must be shown. Skinner v Square D Co, 445 Mich 153 (1994).
Damages — Both noneconomic and economic harms must be proven by the plaintiff with admissible evidence.

Damages Available in a Third-Party Claim

1. Noneconomic Damages (Pain and Suffering)

If the threshold is met, injured persons may recover damages for:

physical pain
emotional distress
loss of enjoyment of life
interference with normal daily activities
loss of consortium (where applicable)

2. Excess Economic Damages

Even when PIP pays medical and wage-loss benefits, defendants may still be liable for excess economic damages, including:

medical expenses exceeding PIP coverage limits
wage loss beyond the statutory 3-year PIP cap
other out-of-pocket expenses not covered by PIP

See MCL 500.3135(3)(c).

III. UNINSURED AND UNDERINSURED MOTORIST CLAIMS

Unlike PIP benefits and third-party negligence claims, uninsured motorist (UM) and underinsured motorist (UIM) claims do not arise directly from the Michigan No-Fault Act. Instead, they are contractual claims governed primarily by the language of the insurance policy itself. These claims can provide critical additional protection when the at-fault driver has no bodily injury liability insurance or does not carry enough coverage to fully compensate the injured person.

Uninsured Motorist (UM) Coverage

Uninsured motorist coverage generally applies when the negligent driver has no applicable liability insurance. Depending on the policy language, UM coverage may also apply in certain hit-and-run situations. Because UM coverage is contractual, the scope of coverage, notice requirements, and exclusions depend heavily on the terms of the policy. An injured person pursuing a UM claim must still prove that the uninsured driver was negligent and that the injuries and damages were caused by that driver’s conduct.

Underinsured Motorist (UIM) Coverage

Underinsured motorist coverage generally applies when the negligent driver carries liability insurance, but the available policy limits are insufficient to fully compensate the injured person’s damages. UIM coverage is likewise controlled by the specific insurance contract. In many cases, UIM benefits are reduced by the amount of liability coverage available from the at-fault driver, though the precise method of calculation depends on the wording of the policy. As with UM claims, the injured person must prove fault and damages.

These Claims Are Contractual and Policy-Driven

Because UM and UIM claims arise from contract rather than statute, insurance policy language is especially important. Policies often contain strict notice provisions, consent-to-settle requirements, time limitations, cooperation clauses, and exclusions that may affect or even bar recovery if not followed carefully. For that reason, these claims should never be evaluated without first reviewing the actual policy language in full.

Damages Recoverable Under UM / UIM Coverage

UM and UIM claims commonly allow recovery for damages the injured person would have been entitled to recover from the negligent driver, subject to policy terms and limits. Depending on the policy, this may include noneconomic damages such as pain and suffering, as well as certain excess economic losses not otherwise compensated. Because these claims are contractual, however, the policy controls the extent of available coverage.

The Threshold Requirement Still Matters

Although UM and UIM claims are contractual, they are usually tied to the damages the insured would be legally entitled to recover from the negligent driver. As a result, when the claim includes noneconomic damages such as pain and suffering, the injured person generally must still establish that the statutory threshold has been met under Michigan law. That means proving death, serious impairment of body function, or permanent serious disfigurement where required.

IV. WHY LEGAL GUIDANCE MATTERS

No-fault law is highly technical, and liability actions require both medical and legal threshold analysis. Between shifting statutory amendments, fee schedules, threshold litigation, subrogation demands, and insurance-priority disputes, Michigan auto accident claims require careful handling to preserve all legal rights.

If you or a loved one have been injured in an auto accident, whether as a driver, occupant, cyclist, or pedestrian, contact JKH Law, PLC, (616) 226-3762 to discuss your legal rights.

JKH LAW BLOG

JKH Law, PLC
312 Fulton Street East
Grand Rapids, MI 49503
(616) 226-3762 (office)
(616) 988-6504 (fax)
Personal Injury Practice