Understanding Michigan’s No-Fault Insurance Mini Tort Law

Michigan’s no-fault auto insurance system includes a “mini tort” provision that allows accident victims to recover up to $3,000 from the at-fault driver for vehicle damage. This mini tort law can help compensate you for out-of-pocket expenses like your insurance deductible. However, there are important limitations and specifics to understand about making a mini tort claim.

At Michigan Auto Law, we have extensive experience helping clients understand and pursue mini tort benefits after a car accident. In this comprehensive guide, we’ll explain everything you need to know about Michigan’s no-fault mini tort law, including:

• What is a mini tort claim?
• Who pays for vehicle damage?
• How does a deductible affect my claim?
• What if the at-fault driver doesn’t own the vehicle?
• How long do I have to file a claim?
• Can I recover damages if I was on a motorcycle?
• And more…

What Exactly is a Mini Tort Claim?

Michigan’s mini tort law allows an accident victim to recover up to $3,000 from the at-fault driver for vehicle damage. This law is meant to cover out-of-pocket costs like insurance deductibles.

Importantly, the mini tort cap increased from $1,000 to $3000 in July 2020. So for any accident after that date, you can recover up to $3000.

Mini tort claims only apply to property damage If you suffered injuries in the accident, you would claim no-fault benefits through your own insurance company

Who Pays for My Vehicle Damage After an Accident?

If the at-fault driver has auto insurance, their liability coverage should pay for vehicle damage up to $3,000

However, the mini tort law is not designed to fully cover all vehicle damage. It only reimburses your out-of-pocket expenses. For example, if you have a $500 collision deductible, the mini tort could repay that amount. Any additional repair costs would be covered by your own collision coverage, if you have that on your policy.

If the at-fault driver doesn’t have insurance, they are personally responsible for all vehicle damage costs, not just the $3,000 limit.

How Does My Deductible Affect a Mini Tort Claim?

The amount of your insurance deductible directly impacts what you can recover through a mini tort claim. For example:

• If you have a $500 deductible, your mini tort recovery would be limited to $500.

• If you have a $1,000 deductible, you could recover the full $1,000.

• If you have no deductible (broad form collision coverage), you would not have a mini tort claim at all, since you did not incur out-of-pocket expenses.

In any mini tort claim, your recovery is capped at your actual expenses, up to $3,000 maximum.

What if the At-Fault Driver Doesn’t Own the Vehicle?

If the at-fault driver was operating a vehicle they don’t own, you should first make a claim with the vehicle owner’s insurance company. They are primarily responsible under no-fault laws.

If the vehicle owner doesn’t have insurance, you can claim through the at-fault driver’s insurance. Their insurer can then seek reimbursement from the uninsured owner.

How Long Do I Have to File a Mini Tort Claim?

Under Michigan law, you have 3 years from the accident date to file a mini tort lawsuit or make a claim. If you miss this deadline, your right to mini tort benefits will be entirely lost.

Can I Recover Damages if I Was Riding a Motorcycle?

Unfortunately, motorcycles do not qualify for mini tort claims in Michigan. Motorcycles are not considered “motor vehicles” under no-fault laws.

However, if your parked motorcycle was damaged, you may be able to claim property protection insurance benefits from the at-fault driver’s policy.

How Do I Collect Payment for My Mini Tort Claim?

To collect mini tort benefits, send a demand letter to the at-fault driver’s insurance company. This letter should explain your out-of-pocket losses and include supporting documents like:

• Police report showing fault
• Your declaration sheet proving coverage
• Repair estimates or photos of damage

If the insurer denies your claim, you may need to file in small claims court. Our attorneys can help with this process.

Get Expert Help with Your Mini Tort Claim

Pursuing your full mini tort benefits can be complicated. The experienced attorneys at Michigan Auto Law can answer your questions and handle the entire claim process for you. We have helped thousands of clients maximize their recovery after an auto accident. Take advantage of our free case review today.