Understanding No-Fault Insurance Laws

Because few states utilize no-fault insurance laws, many drivers on the road today do not have a strong understanding of what these laws actually do. For example, no-fault insurance policies do not mean to imply that there is actually no one at fault in the event of an accident. These laws simply state that for accidents that do not reach a state-specific level of damage, each party must file claims with their respective insurance providers. However, accidents that do surpass the specified threshold are subject to use litigation as a means to recover compensation from the at-fault party.

Different Types of State-Specific Thresholds

Each state that uses a no-fault insurance system enforces its own specific type of threshold to consider the extent of damages incurred during an accident. There are three different types of no-fault thresholds that states currently choose from, which include:

  • Injury Thresholds – the state provides a complete list of different injuries that justify a tort
  • Monetary Thresholds – the state sets a dollar amount for medical bills that must be surpassed before a tort is permitted
  • Choice no-fault – drivers are allowed to choose his or her own policy and pursue litigation at will

The state of Michigan currently uses the injury threshold to enforce its no-fault insurance laws. Therefore, personal injury resulting in serious impairment must occur before an accident victim can pursue litigation for any damages. The state defines serious impairment as an injury that “affects that person’s ability to lead his or her normal life.”

Contact a Detroit No-Fault Accident Lawyer

If you or someone you know was the victim in an automobile accident in Michigan, you may still be eligible to use litigation to pursue your claim. Just because you live in a no-fault state does not mean that there is no way to recover compensation from the at-fault party. The attorneys at Ravid & Associates, P.C. understand how frustrating it is to suffer after an accident that was not your fault. Call us today at (248) 948-9696 to learn more about your legal options.