Can You Sue With No-Fault Insurance?

If you’ve been in an auto accident, you may be wondering if you can pursue legal action against the at-fault driver if you live in a no-fault insurance state. No-fault insurance laws can be confusing, especially when it comes to understanding your rights after an accident. In this comprehensive guide, I’ll explain how no-fault insurance works, when you can and can’t sue, and strategies for getting the compensation you deserve.

What is No-Fault Auto Insurance?

No-fault insurance is a type of coverage required in 12 states. It’s also known as Personal Injury Protection (PIP) coverage.

With no-fault insurance:

Your own insurance company pays for your medical bills and lost wages after an accident, regardless of who was at fault.
You generally cannot sue the at-fault driver except in special cases (more on this below).
Both drivers must carry a minimum level of no-fault coverage, although higher limits are available.

No-fault insurance aims to lower legal disputes over smaller accident claims. However, serious accidents with major losses can still be taken to court.

When Can You Sue With No-Fault Insurance?

In no-fault states, you typically can’t sue for pain and suffering or other losses unless your damages cross certain thresholds Common no-fault lawsuit thresholds include

Permanent serious injury or death
Disfigurement
Loss of body function
Medical and lost wage expenses exceeding the no-fault limits

For example, let’s say you have a $10,000 no-fault policy limit in your state. If your medical bills, lost income and other covered losses exceed $10,000, you may be able to take legal action to recover the excess amounts.

Even if your losses don’t meet state thresholds you may still be able to sue the at-fault driver for damages like vehicle repairs not covered by no-fault benefits.

Steps to Take If You Want to File a Lawsuit

If you’ve suffered major losses in a no-fault state and want to explore legal options, here are some steps to take:

Review your policy: Understand your no-fault coverage limits and any exclusions. This will help you determine if your losses exceed the threshold required to file suit.
Collect evidence: Police report, medical records, proof of lost wages, repair estimates, and scene photos can help prove liability and quantify your damages.
Check state law: Consult with a personal injury attorney to verify that your case meets the state’s threshold for filing a lawsuit. Laws vary significantly between no-fault states.
Send a demand letter: Formally request compensation from the at-fault driver’s insurer before taking legal action. This may prompt a settlement offer.
File suit: If your demand is rejected and your claim has merit, your attorney can file a personal injury lawsuit against the at-fault driver seeking full compensation.

Alternatives to Lawsuits in No-Fault States

Even if you can’t sue, there may be other ways to recover additional compensation in a no-fault accident:

File a product liability claim if a defective auto part caused or worsened your injuries.
Pursue an underinsured motorist claim through your own policy if the at-fault driver’s limits are inadequate.
Negotiate a settlement with the at-fault insurer to cover expenses exceeding your no-fault benefits.
Seek uninsured motorist coverage from your insurer if the at-fault driver had no insurance.

Key Takeaways

No-fault laws restrict accident lawsuits in 12 states but allow serious cases to be taken to court.
Your own auto insurer pays your medical and lost wage costs up to the no-fault policy limits.
You generally must exceed those limits or meet another state threshold to sue the at-fault driver.
An attorney can advise if your specific losses warrant legal action in your no-fault state.

No-fault insurance can provide important benefits after an accident, but may limit your ability to recover full losses. Talk to a personal injury lawyer to understand all your options. With the right strategy, you can work around no-fault restrictions to obtain the maximum compensation possible for your injuries and damages.

can you sue with no fault insurance

What are the risks in filing a Michigan No-Fault insurance lawsuit?

If you hire an auto accident lawyer or file a Michigan No-Fault insurance lawsuit, our lawyers want you to know that you will not be criminally charged. If you were in a car accident and your injuries are very bad and have changed your life and the way your body works, you might have a case and be able to get Michigan No-Fault benefits and money for your pain and suffering. That being said, every person, car accident and personal injury is different. There’s no cookie-cutter answer as to how much you will be able to recover.

There is also no financial risk in filing a Michigan No-Fault insurance lawsuit. That’s because the client doesn’t have to pay the car accident lawyers anything unless the lawyer wins the case. A lot of personal injury lawyers in the state are paid on a contingency fee basis. This is called a contingency fee system.

How much time do I have to file a lawsuit?

You have one year from the date of the accident to file a Michigan No-Fault insurance lawsuit with your own insurance company in order to get No-Fault benefits. People who were hurt have three years to sue the other driver’s insurance company for pain and suffering. If you do not file within this time, it is very difficult to recover from your car accident.

There are other important filing deadlines that if missed, can devastate an auto accident victim’s rights and recovery. This is why it’s beneficial to speak with an auto lawyer about your circumstances. Call Michigan Auto Law at (800) 968-1001, and one of our auto lawyers can help you.

Can You Sue Someone For Not Having Insurance?

FAQ

What does Michigan No-Fault Insurance cover?

If you have an auto accident, no-fault insurance pays for your medical expenses, wage loss benefits, replacement services, and the damage you do to other people’s property. It does not matter who caused the accident. Your basic no-fault insurance does NOT pay for repairs to your car.

How do I claim insurance if it’s not my fault?

If the accident wasn’t your fault, you can use a credit hire company instead of making a claim through your insurance company. A credit hire company pays for the cost of you hiring a replacement vehicle while yours is being fixed, and pays for the cost of repairs.

Can you be sued for a no-fault accident in Florida?

While Florida’s no-fault insurance system limits the ability to sue for minor injuries, it does not completely bar legal action for those who have suffered serious harm. Understanding when and how you can sue in a no-fault accident is crucial for anyone navigating the aftermath of a collision in Florida.

What happens if you get in an accident without insurance in Michigan?

If you own a vehicle without auto insurance and cause an accident, you may be sued and held personally liable.

Can you sue for no-fault insurance?

While no-fault insurance is aimed at discouraging lawsuits, drivers can still sue if they meet the threshold set by that state. The thresholds – verbal and monetary – have complicated rules that are a little different in each state.

Can you sue a driver for a no-fault accident?

So, in no-fault states, drivers must file with their own insurance company to cover medical bills through required personal injury protection (PIP) insurance. If medical damages exceed your coverage, you can sue the other driver if the damages meet a threshold. Five states go by a “verbal threshold” – how serious the injury is.

Can you sue an at-fault driver after a car accident?

In these “no-fault” states, you cannot sue an at-fault driver after an accident unless your injury is very serious, such as losing a limb or suffering paralysis, or unless your medical expenses from the injury exceed the state’s minimum dollar amount required to sue. What is a no-fault state?

Does insurance cover a car accident if a driver is not at fault?

An unlicensed driver: If the unlicensed driver in an accident (not at fault) was driving someone else’s car, the vehicle owner’s insurance may cover some of the damages. No PIP coverage: Compensation can be tricky if you’re involved in a car accident without insurance (not at fault).