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Michigan No-Fault Law: Residual Liability Requirement

Attorney Commentary on No-Fault Statute: MCL 500.3131

Residual liability insurance

Residual liability insurance provides liability coverage for a person who is deemed to be at-fault in causing a car accident that results in “bodily injury and property damage.”

For car accidents occurring outside of Michigan (but “within the United States, its territories and possessions, or in Canada”), residual liability insurance “shall afford coverage equivalent to that required as evidence of automobile liability insurance under the financial responsibility laws of the place in which the injury or damage occurs.”

For car accidents occurring in Michigan, residual liability insurance provides coverage for pain and suffering compensation that an at-fault driver may be liable to pay. This type of compensation is also known as noneconomic loss damages under MCL 500.3135 and can be recovered only if a car accident victim has shown that he or she suffered a “serious impairment of body function.”

No-Fault Attorneys of Michigan Auto Law

The lawyers of Michigan Auto Law have been specializing in auto No-Fault litigation for more than 50 years. If you have been injured in a car accident, truck accident or motorcycle accident and need help navigating through your No-Fault insurance policy, please call one of our experienced attorneys for a free case evaluation at (800) 777-0028 or fill out our consultation form. There is no fee or obligation.

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