Disclaimer: This article is for educational purposes and does not constitute legal advice.
Detailed Answer
1. Understand Michigan’s No-Fault System and Tort Threshold
Under Michigan’s No-Fault Act (MCL 500.3105), your auto insurer pays your economic losses up to policy limits. To pursue non-economic damages (pain and suffering), you must meet the Serious Impairment of Bodily Function threshold (MCL 500.3135). Evaluate whether your injuries qualify before negotiating non-economic damages.
2. Compile Comprehensive Evidence
Gather the police report, medical records, physician statements, lost-wage documentation and vehicle repair estimates. A clear chronology of events and costs strengthens your negotiating position.
3. Calculate and Document Your Damages
Itemize economic damages (medical bills, prescription costs, lost income) separately from non-economic harms (pain, mental anguish). Present a detailed demand summary with supporting documentation to justify your figures.
4. Anticipate Comparative Negligence
Michigan follows modified comparative negligence (MCL 600.2959). If you share fault, your recovery reduces by your percentage of fault. Emphasize facts that minimize your negligence and highlight the other driver’s clear breach of duty.
5. Draft a Persuasive Demand Letter
Begin with a concise factual summary and liability arguments, then itemize your damages and set forth a specific monetary demand with a reasonable response deadline (e.g., 30 days). Attach key exhibits like medical bills and repair estimates.
6. Engage in Strategic Communication
Maintain clear, consistent communication with the insurer. Respond promptly to requests, clarify disputes about liability, and counter lowball offers by referencing your documented evidence.
7. Consider Mediation or Alternative Dispute Resolution
If direct negotiations stall, propose mediation. A neutral mediator can help narrow differences. Insurers often prefer settlement at mediation to avoid litigation expenses.
8. Know When to File Suit
Michigan’s statute of limitations for personal injury is three years from the accident date (MCL 600.5805). Filing a complaint can increase leverage if the insurer refuses a fair offer. Under Michigan Court Rule 2.405, you can serve an offer of judgment to shift costs if they reject a reasonable proposal.
Helpful Hints
- Keep an accident journal recording dates, symptoms and treatment progress.
- Seek independent medical exams if the insurer disputes your injuries.
- Obtain multiple repair estimates from certified mechanics to avoid underestimation.
- Stick to facts in all communications; avoid emotional language.
- Consider a free case evaluation with a local attorney to benchmark a realistic settlement range.