Quick Take:
Michigan’s “No-Fault” auto insurance means your own insurance pays for your medical bills and lost wages—regardless of who caused the accident.
This doesn’t mean fault is irrelevant. If you’re seriously injured and/or your expenses exceed coverage limits, you may still sue the at-fault driver for additional compensation.
The term “No-Fault Insurance” is inherently confusing.
The aim of this blog is to nail down exactly what “no-fault” means, explain how this system differs from other states, and how to handle your insurance claim following an accident in a no-fault state like Michigan.
What Does “No Fault” Actually Mean
As previously stated, the term “no-fault” is confusing. Surely someone is to blame for your auto accident – in the eyes of the law.
In reality, that instinct of confusion is correct. “No-fault” does not mean there is no blame assigned to either party involved in an accident. If you clearly cause a serious accident, you don’t get a free pass just because it happened in Michigan.
The term “no-fault” has nothing to do with establishing what party is liable for causing the accident. It is actually referring to how your medical expenses and certain benefits are paid following an accident.
Under the no-fault system in Michigan, each person’s individual auto insurance covers their initial medical expenses and lost wages, regardless of who caused the accident. The at-fault driver bears no added responsibility of covering the medical expenses of the other driver – at least not up front.
It is possible for the not-at-fault party to obtain additional compensation (beyond what their own insurance is willing to provide) through the process of a third-party lawsuit. This typically only applies to cases involving serious injury, excessive medical costs, and high levels of pain and suffering.
How Does Michigan Differ from Other States
Most other states (38/50) follow what is known as a tort-based system for handling medical expenses following auto accidents.
Under this system, the not-at-fault party files a claim against the at-fault driver’s insurance to pay for medical treatment, lost wages, and other damages.
In contrast, Michigan’s no-fault system removes that immediate blame game. Instead of suing the other driver right away, your own insurance takes care of the upfront medical expenses and wage loss, regardless of who is at fault.
In theory, this system is meant to:
- Speed up treatment
- Reduce unnecessary small-scale lawsuits
- Insure that injured drivers get help fast
Pursuing Additional Compensation
In many cases, your auto insurance policy may not cover the full extent of your medical expenses, especially if serious treatment is required for recovery. In more severe accidents, a full recovery may not even be possible.
In these situations, it’s often necessary to file what’s called a third-party lawsuit against the at-fault driver to seek compensation beyond what your own insurance provides.
This lawsuit-based approach is the default system in tort-based states. But in Michigan, it’s reserved for serious cases involving long-term injuries, high costs, or life-altering consequences—not minor fender-benders.
Get David Get Paid
If you or a loved one was recently involved in an auto-accident and needs help getting back on their feet, give us a call at Femminineo Law today! The team here at Femminineo law is amongst the most elite personal injury attorneys in Michigan.
Whether you need help dealing with your own insurance company, initiating a lawsuit against an at-fault driver, or want to know if your accident is worthy of compensation, give us a call today!
You can reach us any time at 855-65-CRASH or visit us at www.getdavidgetpaid.com.
