Michigan Passenger In Car Accident Rights Explained
What are your legal rights if you are an injured passenger in a car accident in Michigan?
I hear this question quite a bit from people who are commuting in someone else’s car. This is one of those situations where no one would even think about what your legal rights are or how No-Fault insurance will apply if you are commuting in a car – that is, until it happens to you.
It’s an important question because there is also a lot of misinformation out there and conflicting advice from claims adjusters and agents on how No-Fault insurance works and the order of priority that leaves some people thinking they don’t have any legal rights and cannot get help if they are an injured passenger in a crash.
That couldn’t be further from the truth.
Today, I will review the legal rights of an injured passenger in a car accident in Michigan, including whether they are covered by auto No-Fault insurance, their rights to sue at-fault drivers for pain and suffering and what drivers need to know about them. I will also talk about child commuters and special protections to keep children safe in cars.
Are passengers in car accidents covered by car insurance in Michigan?
If you are a Michigan resident and you are injured as a passenger in a car accident, you are covered by No-Fault car insurance PIP benefits that will pay for your medical expenses, replacement services and lost wages if your injuries prevent you from returning to work.
However, the amount of medical coverage you may be entitled to will be limited by the No-Fault PIP medical benefits coverage level selected in the policy through which you are claiming No-Fault benefits. (MCL 500.3107c(5))
The No-Fault PIP medical benefits coverage levels include: $50,000 (for drivers on Medicaid); $250,000; $500,000; and an unlimited option. (MCL 500.3107c(1))
Does PIP cover passengers in Michigan?
PIP covers passengers who are Michigan residents and have been injured in a motor vehicle crash. No-Fault PIP benefits will help pay for an injured passenger’s crash-related medical bills and lost wages if his or her injuries disable him or her from working.
However, PIP covers a non-Michigan resident passenger only if he or she “owned a motor vehicle that was registered and insured in” Michigan. (MCL 500.3113(c))
If I am an injured passenger in a car accident in Michigan, whose auto insurance company pays benefits?
Generally, if you are an injured passenger in a car accident in Michigan, you will receive auto No-Fault benefits through your own auto insurance policy or the policy of a spouse or a relative who lives with you.
This No-Fault “order of priority” determines the order for which an auto insurance company will step up to pay for the commuter’s auto No-Fault benefits. The order of priority is as follows:
- First: The first priority for paying No-Fault benefits to an injured commuter is his or her own auto insurance company, i.e., the auto insurer who issued a personal No-Fault auto insurance policy to the commuter where he or she is the “named insured” in the policy. (MCL 500.3114(1))
- Second: The second priority for paying No-Fault benefits to an injured commuter is the auto insurance company that issued a No-Fault policy to the commuter’s spouse. (MCL 500.3114(1))
- Third: The third priority for paying No-Fault benefits to an injured commuter is the auto insurance company that issued a No-Fault policy to a resident relative of the commuter. (MCL 500.3114(1))
What if I am an injured passenger in Michigan without insurance?
If you are an injured passenger in a car accident in Michigan without insurance and you also don’t have auto insurance coverage through a policy belonging to your spouse or a resident relative, the No-Fault law will still protect you if you have been injured.
Under any of these circumstances where no one in the order of priority is insured or has auto insurance, you can still recover benefits if you apply to the Michigan Assigned Claims Plan. The auto law states that an uninsured commuter “shall” apply for No-Fault benefits through the Michigan Assigned Claims Plan and an insurance company will be selected to pay your auto No-Fault insurance benefits. (MCL 500.3114(4))
Importantly, your coverage for No-Fault PIP medical benefits under the Michigan Assigned Claims Plan will be limited to $250,000. (MCL 500.3172(7)(a))
The Assigned Claims Plan, which is administered by the Michigan Automobile Insurance Placement Facility (MAIPF), provides No-Fault benefits to a car crash victim – including uninsured commuters – for whom No-Fault benefits coverage is not otherwise available under the order of priority for No-Fault benefits. (MCL 500.3172(1))
Can a passenger in a car accident sue in Michigan?
In Michigan, a passenger in a car accident can sue for: (1) pain and suffering compensation and excess medical and wage loss benefits; and (2) unpaid and overdue No-Fault benefits. The first lawsuit will be filed against the at-fault driver. The second lawsuit will be filed against the responsible auto insurer.
Under Michigan law, when suing the at fault negligent driver who caused the accident for pain and suffering, you will be entitled to compensation from the at-fault driver (and his or her insurance company) for your injuries, pain and suffering, and any excess economic loss and excess medical bills over the No-Fault PIP cap you have.
Depending on the circumstances of how the accident occurred, a pain and suffering lawsuit may be filed against the at-fault driver – whether that at-fault negligent driver of the vehicle who struck the car you were in or the driver of the vehicle you were in caused the crash.
However, there is one unique legal requirement that we have in Michigan that does not exist in other states. In order to bring a claim for pain and suffering compensation, an injured traveler in your vehicle must first show that he or she has suffered a “serious impairment of body function.” This is the No-Fault law’s tort threshold requirement that any injured passenger in a car accident must be able to show in order to recover “noneconomic loss” damages (i.e., pain and suffering compensation).
Also, beware of step-down policies in your auto insurance coverage. If a commuter has been injured and is suing the driver of his or her vehicle and the driver happens to be a family member, then they may also have to contend with what is called a “step-down” provision that your own insurance company has inserted into your policy. The effect of these step-down provisions is to reduce an auto insurance policy’s liability coverage down to the state minimums when an injured person is suing a spouse or family member for his or her injuries. Step-downs are optional contractual coverages. In my opinion as an insurance and auto accident lawyer, there is no justifiable reason for any person to ever purchase car insurance from a company that is trying to sell you a policy that includes a step-down clause. A step-down provision is deliberately anti-consumer and anti-customer. It punishes those you love and want to protect the most if a loved one is ever hurt while they are traveling in your car.
How much can a passenger get in a car accident in Michigan?
In Michigan, the amount of money that a passenger in a car accident can get will depend on: (1) their injuries; (2) present and future medical needs; (3) whether they suffered a “serious impairment of body function”; (4) their lawyer’s track record; and (5) the at-fault driver’s liability insurance limits.
This is where your choice of an auto accident attorney 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 automobile accident attorneys talk a good game. But if it has been years since they’ve tried a case, the insurance companies know and they will use this fact to force the attorney and, thus, his or her client to accept low-ball settlement offers that are drastically less than what the crash victim’s case is actually worth.
The bottom line is that attorneys who are known for going to trial can settle cases for significantly more money and often much faster.
If you are an injured passenger in a car accident, please check out our car accident settlement calculator to learn how much your case may be worth.
How to claim as a passenger in a car accident in Michigan?
In Michigan, to claim as a passenger in a car accident, you must file an application for No-Fault benefits with the responsible auto insurance company within one year of the crash that resulted in your injuries. You may also need to file a claim under the at-fault driver’s liability policy and/or your own UM or UIM policies.
What happens if a passenger dies in a car accident in Michigan?
In Michigan, if a passenger dies in a car accident, his or her family and dependents may be able to recover wrongful death compensation and damages from the at-fault driver whose negligence caused the fatal crash. Survivor’s loss benefits will also provide help with financial support for the deceased person’s dependents.
Can a passenger in a car accident be a witness in Michigan?
In Michigan, a passenger in a car accident can be called as a witness by any of the people involved in the crash who, ultimately, become parties in a lawsuit if the passenger has personal knowledge of the events surrounding the crash.
However, if you are an injured passenger in Michigan that suffered injuries that may affect his or her perception of events, such as being rendered unconscious and otherwise having impaired perception, then their relevance and qualifications to be a witness may need to be evaluated accordingly.
What if I’m driving another person’s child and they are injured in a crash, what are their No-Fault insurance rights?
If someone else’s child is traveling in your vehicle and he or she is injured in an accident, then the child would collect No-Fault benefits through the following sources:
- First: The child would collect No-Fault benefits through his or her parents’ auto insurance policies where the child and the parents live together, i.e., where they are resident relatives.
- Second: If there is no source of No-Fault coverage through the child’s parents as resident relatives, then an application for No-Fault benefits would be filed with the Michigan Assigned Claim Plan on the child’s behalf. The child would then collect benefits from the auto insurance company that the Plan assigned to handle his or her claim.
Injured in a car accident in Michigan? Call the attorneys at Michigan Auto Law
If you or a loved one have been injured as a passenger in a car accident in Michigan, call now (855) 781-7747 for a free consultation with one of our experienced attorneys. 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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If your or a loved one was an injured passenger in a car accident in Michigan, call now so we can start making a real difference for you.