Compensation For Death In Car Accident: What You Need To Know
There are two types of compensation for death in a car accident in Michigan. First, the deceased’s dependents may recover survivor’s loss benefits under Michigan’s auto No-Fault insurance law. Second, the deceased’s family may recover wrongful death damages and payment from the at-fault driver.
Michigan No-Fault Survivor’s Loss Benefits (First-Party Claim)
Every Michigan auto insurance policy includes Personal Injury Protection (PIP), which pays survivor’s loss benefits to a deceased victim’s dependents regardless of who caused the crash. These benefits are available for up to three years from the date of the accident and cover:
- Lost Income: After-tax wages and fringe benefits the deceased would have provided, up to a monthly cap. For accidents occurring between October 1, 2025, and September 30, 2026, the maximum is $7,201 per month. (MCL 500.3108(1) and (2)) The cap that applies is whichever one was in effect on the date of the accident — it doesn’t change later even if the annual maximum goes up.
- Replacement Services: Up to $20 per day to cover household services the deceased used to provide, such as childcare, yard work, or house cleaning. (MCL 500.3108(1))
- Funeral and Burial Expenses: A minimum of $1,750, up to $5,000, depending on the coverage purchased. (MCL 500.3107(1)(a))
- Prior Medical Bills: Medical treatment and emergency care from the time of the crash until the time of death, subject to the PIP medical coverage limit chosen on the policy (which can range from $50,000 to unlimited).
Filing deadline: A No-Fault application must be filed with the insurance company within one year of the accident. Missing this deadline generally results in losing the right to these benefits. (MCL 500.3145(1))
Wrongful Death Compensation For A Fatal Car Accident In Michigan
When a car accident in Michigan is fatal, the deceased victim’s estate can pursue compensation through a wrongful death lawsuit against the at-fault driver. Our state’s wrongful death act allows the estate to recover compensation. (MCL 600.2922(1)) The family can file a wrongful death lawsuit against the at-fault driver to sue for damages for pain and suffering, loss of companionship and loss of financial support. (MCL 600.2922(6))
A wrongful death lawsuit can only be brought by the personal representative of the estate of the person who lost his or her life in an automobile crash. (MCL 600.2922(2))
People who may be entitled to wrongful death damages under Michigan’s wrongful death law include the deceased victim’s spouse, children, descendants, parents, grandparents, brothers and sisters as well as children of the deceased’s spouse and “devisees” under the deceased’s will. (MCL 600.2922(3))
What Compensation Is Available For Death In A Car Accident In Michigan?
When a car accident in Michigan is fatal, the deceased victim’s estate can pursue compensation through a wrongful death lawsuit against the at-fault driver. Our state’s wrongful death act allows the estate to recover several categories of damages, including:
- Medical expenses incurred prior to passing
- Funeral and burial expenses
- Lost wages and future financial support the deceased would have provided
- Loss of companionship and society suffered by surviving family members
- The deceased’s conscious pain and suffering prior to passing, if applicable
- Other economic damages allowed under state law (MCL 600.2922(6))
Most insurance companies use some form of claims adjusting software when determining the settlement value of a wrongful death. Important factors to a successful wrongful death settlement is a lawyer’s experience, settlement and verdict track record on wrongful death cases and reputation.
How Much Compensation For A Death In A Car Accident In Michigan?
There’s no fixed amount. Compensation for a fatal car accident in Michigan depends on two separate sources: No-Fault survivor’s loss benefits (paid by the auto insurer, capped monthly, available regardless of fault) and a wrongful death lawsuit against the at-fault driver (which has no cap and depends on the facts of the case, including the deceased’s earnings, age, and the extent of the family’s losses).
Is There A Deadline To File A Claim?
Yes. A No-Fault application for survivor’s loss benefits must be filed within one year of the accident. A wrongful death lawsuit against the at-fault driver generally must be filed within three years of the death.
Can A Family Recover Both No-Fault Benefits And Wrongful Death Compensation In A Michigan Fatal Car Accident Settlement?
Yes. These are two distinct claims. Survivor’s loss benefits come from the No-Fault insurer regardless of fault. A wrongful death lawsuit is a separate claim against the at-fault driver for damages the Michigan No-Fault benefits don’t cover after a fatal car accident, such as pain and suffering compensation and loss of companionship.
Choosing The Right Attorney Is Critical
This is where your choice of a personal injury lawyer is particularly important. Auto insurance companies know who the attorneys are that will go to trial and who the attorneys are who don’t. Most personal injury attorneys talk a good game but if it has been years since they’ve tried a case, insurance companies regularly use this to force settlements that do not reflect full value for people who have died in an automobile crash.
The bottom line is that attorneys who are known for going to trial can settle cases for significantly more money and often much faster.
To learn more about how much your loved one’s case may be worth, please check our “Settlement Calculator.”
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Have You Lost A Loved One To A Death In A Car Accident And Have Questions About Compensation? Call Our Attorneys Now For A Free Consultation!
If you lost a love one to a death in a crash in Michigan and you have questions about a lawsuit and compensation, call now (800) 968-1001 for a free consultation with one of our experienced car accident lawyers. There is no cost or obligation. You can also visit our contact page or use the chat feature on our website.
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Written By
Steve M. Gursten,
Attorney,
License#: P53632
Steven Gursten, attorney at Michigan Auto Law and one of the most successful auto accident attorneys in Michigan. Michigan Auto Law represents people seriously injured in car, truck, motorcycle, and bus accidents, including catastrophic injury, traumatic brain injury, and No-Fault insurance cases. Steven has recovered the largest reported auto and truck accident settlement of any Michigan lawyer, and has been named Michigan Lawyer of the Year and a Top 50 Michigan Super Lawyer.
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