Auto Accidents in Michigan

Third-Party Benefits – Auto Negligence Claims

When a driver's negligence causes an auto accident in Michigan, the driver may be sued for third-party benefits, in which case his or her no fault insurance company would be responsible for paying the claim.  This is referred to as an automobile negligence claim.

Third-party claims seek compensation for:

• Economic loss
• Non-economic loss

Claimants may not sue for damages already owed or paid by the first party insurance policy, nor may they sue for lost income capacity as a result of the injury. While there are a few exceptions, the statute of limitations for third-party claims is for three years.

Economic losses

Economic losses include expenses not covered by a first party claim, such as wage losses incurred beyond the monthly cap or beyond the 3-year period. Reimbursement for replacement services may also be sought to cover expenses greater than $20 per day or costs going beyond the 3-year benefit period.

Non-economic losses

Non-economic losses refer to pain and suffering as a result of the auto accident. Provided that the injured individual meets the threshold injury criteria, he or she (or in the event of death, the surviving family) may sue for pain and suffering. The threshold requirement is defined by any of the following:

• Permanent serious disfigurement
• Serious impairment of body function
• Death

The purpose of a third-party claim for non-economic losses would be to receive compensation based on a lessened quality of life that in addition to pain and suffering may involve mental affliction, emotional distress, diminished capacity, disability, impaired bodily functions, and a loss of social pleasure or enjoyment of life as a result of an accident.

Because first-party claims frequently fail to cover all necessary expenses, sometimes bringing a third-party action is the only way an auto accident victim or surviving family may fully recover damages that result from serious injury.

Discuss your Michigan auto accident with an attorney today

If you believe that you or a loved one could benefit from a third-party claim as a result of their Michigan auto accident, we encourage you to arrange a consultation with a personal injury lawyer at Erlich, Rosen, Bartnick & Cook. The consultation is free and if we agree to represent you, you will owe us nothing until we have made a recovery on your behalf.

Call us today at 877-453-2840 or contact us online.