What is a Detroit No-Fault Crash?

A Detroit no-fault accident is a car accident that occurs in the Motor City and is covered by the requirements and provisions of Michigan’s No-Fault auto insurance law.

Most importantly when it comes to paying for your accident-related medical bills and lost wages if you’re injured so badly that you can’t return to work, you will be entitled to financial support through No-Fault benefits regardless of whether you at fault in causing the accident that resulted in your injuries.

The term “no-fault” refers to the way an insurance claim is handled after a car crash. Under a no-fault system, each party files a claim with their own insurance company, regardless of who was at fault in the accident. This means that if you’re involved in a car crash, you don’t have to pursue the at-fault driver’s insurance provider for payment of your medical expenses or lost earnings. Instead, your own insurance company compensates you.

In other states that have a pure tort-based system, that isn’t the case. Car accident victims get financial help with medical bills and lost wages only if they can prove the other driver was at-fault. If they don’t, then the victims have to pay out-of-pocket or rely on their health insurance.

Significantly, subject to the coverage level limits in your auto insurance policy or the policy through which you’re claiming benefits after a Detroit No-Fault crash, your benefits will help cover your: (1) medical expenses; (2) reimbursement for lost wages; (3) traveling costs for going to and from doctor and medical appointments; (4) household replacement services; and (5) attendant care services.

In the unfortunate circumstance of an accident resulting in death, no-fault car insurance extends coverages known as “Survivor’s Loss” or “Death Benefits.” These benefits help alleviate the financial strain on the deceased policyholder’s dependents. Depending on the policy and state legislation, the benefits may cover a portion of lost wages that the deceased would have earned, as well as provide a monthly allowance for replacement services, such as child care or housekeeping. This ensures that, amidst the emotional hardship, families can manage the financial implications associated with the sudden loss of a loved one involved in a car accident.

There are limits to the “no fault” nature of the law, however.

When you have been injured in a Detroit No-Fault crash, you may be able to file a pain and suffering lawsuit for compensation against the negligent driver who caused the accident, but only if you can prove that he or she was at-fault for causing the crash.

Additionally, your Michigan car accident lawyer has to prove that your accident-related injuries caused you to suffer a “serious impairment of body function,” which means your injuries caused you to suffer an impairment that affects your general ability to live your normal life, i.e., the life you were living before you were injured in the crash.

In most No-Fault states, the capacity to sue for pain and suffering compensation is notably restricted by the state’s No-Fault law. The foundational principle of No-Fault insurance is to minimize litigation, thereby usually limiting compensation to economic damages such as medical expenses and loss of income, which are covered by one’s personal injury protection (PIP) policy.

However, there is an exception concerning the pursuit of pain and suffering compensation under specific circumstances. Some No-Fault states permit lawsuits for pain and suffering if the injuries sustained in the accident meet a legally defined severity threshold, commonly referred to as a “threshold injury.” This threshold can vary by state but generally includes significant disfigurement, severe impairment of a body function, or death. In such instances, the severity of the injury must pass this threshold to open the possibility for a pain and suffering lawsuit.