Understanding Michigan’s No-Fault Law and Injury Threshold
Michigan operates under a no-fault auto insurance system. Your own Personal Injury Protection (PIP) benefits pay for medical expenses and lost wages regardless of who caused the crash. To pursue pain-and-suffering damages for soft tissue injuries—like sprains, strains, and whiplash—you must meet the “serious impairment of body function” threshold in MCL 500.3135.
Step 1: Document Your Economic Damages
Economic damages include medical bills, rehabilitation costs, and lost income. Compile all bills, receipts, and wage statements. These figures form the baseline for any settlement calculation.
Step 2: Assess Non-Economic Damages
Non-economic damages cover pain, suffering, emotional distress, and loss of enjoyment of life. In Michigan, recovery for these damages requires proving a serious impairment. Even if you qualify, Michigan caps non-economic awards based on your choice of PIP coverage—refer to MCL 500.3101 for PIP limit options.
Step 3: Choose a Valuation Method
Two common approaches help approximate settlement value:
- Multiplier Method: Multiply total medical expenses by a factor (usually 1.5 to 5). More severe or long-lasting injuries justify a higher multiplier.
- Per Diem Method: Assign a daily rate (e.g., $50–$200 per day) for pain and suffering, then multiply by the number of days you experienced symptoms.
Step 4: Adjust for Comparative Fault
Michigan follows a comparative negligence rule. If you share fault for the accident, reduce your total by your percentage of blame. For example, if you’re 20% at fault, subtract 20% from your calculated damage amount.
Step 5: Factor in Insurance Policy Limits
Review the at-fault driver’s liability limits. Even a well-supported demand can’t exceed those policy limits. If the at-fault driver’s policy is low, you may need to look to your underinsured motorist coverage.
Putting It All Together
To illustrate, imagine $10,000 in medical bills, $2,000 in lost wages, and a multiplier of 3 for pain and suffering. That yields:
($10,000 + $2,000) + ($10,000 × 3) = $12,000 + $30,000 = $42,000
If you’re 10% at fault, reduce by 10%, resulting in $37,800. Confirm that figure doesn’t exceed any applicable insurance limits.
Disclaimer
This article is for educational purposes and does not constitute legal advice. Consult a qualified attorney to discuss your case.
Helpful Hints
- Keep a detailed injury journal: track pain levels, treatment dates, and activity restrictions.
- Retain all medical records and bills—even small therapy sessions add up.
- Obtain at least two medical opinions if your impairment severity is disputed.
- Review insurance policies promptly to understand your coverage limits.
- Consider consulting a Michigan personal injury attorney before accepting any offer.