Understanding Michigan Car Accident Laws (2026)
Contributor
Reviewed By Adam Ramirez, J.D.
Editor
Summary
- Michigan follows a no-fault system for car accidents
- You will usually have three years to begin a lawsuit after a crash
- The serious impairment threshold lets you step outside of no-fault laws
Michigan car accident laws aim to protect people who have been in collisions and suffered losses. From no-fault laws to statutes of limitations you must abide by, knowing the ins and outs of these civil procedures can make a difference in how successful your claim is.
Here’s a closer look at your legal options and how a Michigan personal injury lawyer can help you.
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What Are Michigan's Car Accident Laws?
There are a few crucial Michigan car accident laws to know, beginning with the state’s no-fault insurance system.
How Does Michigan's No-Fault Car Insurance System Work?
The state’s no-fault car insurance system requires that you file a claim against your personal injury protection (PIP) insurance if you’re in a collision. Your PIP insurance will typically address your medical expenses, lost wages, and property damage up to your coverage limit.
In Michigan, you have options when it comes to basic types of insurance, including PIP insurance, property protection insurance (PPI), and residual bodily injury and property damage liability (BI/PD).
For BI/PD, the new default coverage amounts are as follows:
- $250,000 per person who is hurt or killed in the crash
- $500,000 per accident
- $10,000 to cover damage that you cause to someone else’s property in another state
You can choose other options for BI/PD, though the minimum you can have is $50,000 per person, $100,000 per accident, and $10,000 for property damage in another state.
What Is the Serious Impairment Threshold for Pain and Suffering Claims?
If you sustain injuries that cause serious impairment of a bodily function, disfigurement or death, you can step outside of Michigan’s no-fault laws and pursue a personal injury claim. This will allow you to obtain compensation for non-economic damages like pain and suffering.
Can You Sue if Your Injuries Are Not Permanent?
It can be possible to file a lawsuit even if your injuries aren’t permanent. You will have to demonstrate that you have suffered a serious impairment of a bodily function, however, that impacts your quality of life.
Can You Sue if You're Partly at Fault for the Accident?
Michigan has modified comparative negligence laws that allow you to still recover losses if you were partly to blame for the collision. This means that if you are 50% or less to blame for the crash, you can receive reduced economic and non-economic damages.
If your percentage of liability is higher than 50%, you may still recover economic damages, but you can be barred from receiving non-economic ones.
What Is the Statute of Limitations for Car Accident Lawsuits in Michigan?
Michigan car accident laws also limit the amount of time you have available to begin a lawsuit. In most cases, the statute of limitations is three years from the date of the accident.
There are instances when exceptions may apply, which is why it’s so important to have a lawyer assisting you. If you miss the deadline, you may not be able to recover any losses at all.
If you’re filing a no-fault claim, you will typically have only one year to begin the process. The clock starts running from the date of the accident.
How Have Michigan's Car Accident Laws Changed Over Time?
Up until 2020, Michigan had a much more rigid system for PIP coverage. It was the only state that required unlimited lifetime medical coverage for all auto accidents. New legislation has allowed drivers to choose a variety of coverage levels or to opt out of PIP insurance completely if they have private health coverage or eligible Medicare plans.
There are also higher liability minimums. Before, your BI/PD coverage had to be at least $20,000 per person or $40,000 per accident, but that has increased to $250,000 and $500,000, respectively.
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Do You Need to Report a Car Accident in Michigan?
You must report a car accident in Michigan if the collision resulted in injuries, death or property damage of at least $1,000. It is always a good idea, however, to report a crash so that there is an official record of the accident.
Why Working With a Michigan Car Accident Attorney Matters
A car accident lawyer can help you understand your rights while also working to give you the best possible chance of winning the settlement you need. If there are any disputes over fault or any other complications, you need experienced representation in your corner.
At ConsumerShield, we can help connect you with leading attorneys in Michigan. You shouldn’t have to navigate these complex legal processes alone. Contact us for a free case review to learn more about our services today.
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Frequently Asked Questions
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Every case is unique, but you can generally expect a claim to take a few weeks to a few months. The complexity of the case will impact its duration. If there are multiple parties involved or disputes over fault, then the process can take longer.
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Economic damages address your medical expenses, including any future care you may need. They also cover lost wages if you can’t work because of your injuries. If you can’t return to work at all, you can receive compensation for loss of earning potential.
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Some of the factors that can impact your settlement include the amount of evidence you have that demonstrates the other party was liable, the severity of your injuries and the percentage of blame you share for the crash. Additionally, having representation can play a role.
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Michigan car accidents typically occur because of driver errors. Common reasons include distracted, fatigued and intoxicated driving.
