What to Do After a Car Accident in Farmington Hills: Michigan No-Fault & Legal Guide

Davis Law Center handles all personal injury cases on a contingency fee basis. You pay no upfront costs or attorney fees unless we recover a settlement or verdict for you.

You may still be eligible for compensation through Uninsured Motorist (UM) coverage on your auto policy or through the Michigan Automobile Insurance Placement Facility (MAIPF).

Under MCL 500.3135, to recover non-economic damages (pain and suffering) from an at-fault driver in Michigan, an injured party must prove that their injuries resulted in death, permanent serious disfigurement, or a “serious impairment of body function.”

To meet this legal standard, the injury must be:

Objectively Manifested: Observable or medically verifiable (e.g., via MRI, X-ray, CT scan, or objective clinical exam).

An Important Body Function:
Impairing a body system vital to the person’s daily life, i.e., neck or back movement.

Affecting General Ability to Lead a Normal Life: Influencing the victim’s ability to conduct their normal capacity of daily living, work, or recreational activities.

Michigan’s Mini-Tort law (MCL 500.3135(3)(e)) allows drivers who are not at fault (or less than 50% at fault) to recover up to $3,000 for out-of-pocket vehicle repair costs from the at-fault driver’s insurance.
Mini-tort damages apply strictly to uninsured vehicle damage or your insurance deductible if you carry limited collision coverage. It does not cover general property or personal injuries.

The One-Year-Back Rule (MCL 500.3145) states that an accident victim cannot recover No-Fault PIP medical or wage-loss benefits for any expense incurred more than one year before the lawsuit was filed.

If your auto insurance carrier refuses or delays paying a medical bill or replacement service invoice, failing to file a lawsuit within 12 months of that specific unpaid expense forever bars you from recovering those funds.

Under Michigan law, when an auto accident occurs, PIP benefits are paid according to a strict legal “Order of Priority” (MCL 500.3114):

1. Your Own Auto Policy: The personal insurance policy where you are the named insured.

2. Spouse or Resident Relative Policy: An auto policy held by your spouse or a relative living in your household.

3. Michigan Assigned Claims Plan (MACP):
If you don’t own a car, don’t live with a relative who owns one, and were a passenger or pedestrian, the MACP assigns your claim to an insurer licensed in Michigan. This coverage is capped at $250,000 for PIP medical coverage.

Michigan follows a legal rule called Modified Comparative Fault (MCL 500.3135(2)(b)):

If you are 50% or less at fault: Your financial recovery for pain and suffering is reduced by your percentage of fault. For instance, if a jury awards $100,000 but finds you 20% at fault, you would receive $80,000.

If you are more than 50% at fault: You are legally barred from recovering any non-economic (pain and suffering) damages from the other driver.

Note: Your entitlement to No-Fault PIP medical and wage benefits remains 100% covered regardless of fault.

Under Michigan’s No-Fault system, drivers choose from distinct Personal Injury Protection (PIP) medical coverage tiers when purchasing or renewing their policy:

Unlimited Coverage: Full, lifetime medical protection (the gold standard, recommended by Davis Law Center).

$500,000 Cap: Covers medical expenses up to $500,000 per person per accident.

$250,000 Cap: Covers medical expenses up to $250,000 per person per accident.

$50,000 Cap:
Available exclusively to drivers enrolled in Medicaid.

PIP Opt-Out: Available to qualifying drivers enrolled in Medicare Parts A & B, with household coverage that meets state guidelines.

If medical costs exceed your elected PIP cap, you can claim the remaining medical debt against the at-fault driver’s Bodily Injury (BI) liability policy.

Depending on where the crash occurred and the monetary value of the damages sought, auto injury lawsuits in the Farmington Hills area are adjudicated in:

47th District Court (Farmington Hills): Handles civil disputes, mini-tort claims, and small claims matters up to $25,000.

6th Judicial Circuit Court of Oakland County (Pontiac, MI): Handles major personal injury lawsuits, serious impairment claims, and third-party cases exceeding $25,000.

Third-Party Personal Injury Lawsuits (Pain & Suffering): The statute of limitations is 3 years from the exact date of the collision.

First-Party No-Fault Claims (PIP Medical/Wages): You must formally notify your insurer within 1 year of the accident date, and lawsuits for unpaid benefits must comply with the One-Year-Back Rule.