By Christie Nicholson, J.D. | Legally reviewed by Katrina Wilson, Esq. | Last reviewed July 15, 2024
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In 2020, there were over 245,000 car accidents in Michigan. Only 18.1% of these car crashes involved personal injury. The rest resulted in nothing more than property damage. Accident victims who suffer serious bodily injury in a motor vehicle accident may have a valid claim for damages.
Michigan has specific laws about car accident compensation. If the at-fault driver's insurance company denies your claim, you must sue the driver personally. This will be your only chance of compensation for your injuries and out-of-pocket losses.
If you are in a car accident in Michigan, you should learn about the state's car compensation laws. This article briefly overviews car accident compensation laws in Michigan and discusses the statute of limitations for auto accident claims.
Below, you'll find a table outlining key sections of Michigan's car accident compensation laws, including limits on damages and the statute of limitations.
| Statute of limitations | Three years for most personal injury and property damage lawsuits (§ 600.5805) |
|---|---|
| Limits on damages | Michigan law does not limit the amount you can recover in personal injury cases. But, as of January 2024, the maximum cap on medical malpractice cases is $1,016,000. |
| Other limits | Michigan's no-fault system requires that you file your insurance claim before pursuing legal damages. The State of Michigan's modified comparative negligence fault system applies to all personal injury claims (§ 500.3135). |
Note: State laws are subject to change through new legislation, higher court rulings, ballot initiatives, and other means. While we strive to provide the most current information, consult a Michigan car accident attorney or conduct legal research to verify your state laws.
You can recover two types of damages in your lawsuit: economic and non-economic. Economic damages are the more direct, specific costs you have due to your motor vehicle accident. This includes things like medical bills and auto mechanic fees. Non-economic damages are the more abstract costs of an accident, like emotional distress or pain and suffering.
Examples of economic damages in a car accident lawsuit include:
Examples of non-economic damages include:
In most states, accident victims can demand punitive damages. But Michigan law does not call for this type of damages. Instead, your Michigan car accident lawyer can demand exemplary damages.
The judge awards exemplary damages to compensate the plaintiff for humiliation and outrage. The defendant's behavior must be egregious to qualify for exemplary damages. Michigan courts rarely award these damages in a car accident case. If the judge grants you these damages, there is no cap on how much you can get.
Michigan follows a "no-fault" system for car accidents. You do not need to prove fault to get car insurance benefits. An injured person in a Michigan car accident lawsuit can recover damages for medical expenses and other economic losses without proving the other driver was negligent. Michigan law does not require proving the other party is at fault.
Michigan follows the "modified comparative negligence" rule for damages beyond those covered by the no-fault system. This rule says you can still recover damages if you were partially at fault for the car crash.
To qualify for damages under Michigan's comparative fault system, you must prove that you were less than 50% at fault. The court will also reduce your damages by your percentage of fault. For example, imagine that you're in a rear-end collision. You can't recover damages if you're more than 50% at fault.
If the defendant can show that your brake lights weren't working during the crash, you may be partially responsible for the crash. If the court holds you 20% to blame, your damages will decrease by 20%.
Michigan does not limit economic damages in personal injury lawsuits. But, there is a $280,000 cap on non-economic damages in medical malpractice and product liability cases. There are a handful of exceptions to this rule.
If your auto accident lawyer can prove any of the following, the cap on non-economic damages will increase to $500,000:
Michigan law also limits how much you can demand directly from the other driver. If the auto insurance company doesn't cover your vehicle repair costs, your claim against the other party can't exceed $3,000.
Every state has a statute of limitations that requires you to file your personal injury lawsuit within a specific period of time. In Michigan, the statute of limitations for car crash victims is three years.
The deadline is three years from the date of the accident. If you don't file your lawsuit within the statute of limitations, you may be unable to claim any damages.
Navigating Michigan car accident laws and a no-fault insurance system can be daunting. It's worth it if you suffer serious bodily injury in a car crash. Ideally, the other driver's insurance coverage will be enough to compensate you for your losses. If that isn't the case, you'll have to file suit.
It's a good idea to seek legal advice from an experienced motor vehicle accident attorney familiar with Michigan law. They'll fight to get you the compensation you deserve and ensure you meet the filing deadlines.
Contact a qualified attorney.
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