Legal Question in Insurance Law in Michigan

Re: Right to Sue

As far as the No-Fault act is concerned, in order to be protected against suits for property and medical expense damages, a driver who is required to have no fault coverage must have that coverage. One of the exceptions to the abolition of most tort liability is where a driver fails to have the required insurance in place.

There may be a complication to the extent the losses were covered by insurance which you carried. MCL 600.6303 generally prevents recovery for damages covered by a collateral source which does not claim a lien, and if there is a lien, sets up rules for giving notice to the lienholder.

Please feel free to contact me by telephone if you would like to discuss these issues.

Re: Right to Sue

Yes, you can sue the at-fault party if they did not have the required no-fault insurance coverage. Normally (if they DID have coverage), you'd only be able to get your collision deductible up to $500. But since they were uninsured, you can get the whole damage amount. BUT: report the accident to your own insurance carrier first--they'll take care of your collision coverage (unless you didn't have that type of coverage--in which case you have to take the at-fault guy to small claims court). Your own insurance company will set up a medical claim on your behalf for Michigan no-fault benefits (wage loss, medical, + some other benefits) and will then--when all is said and done--start collection proceedings against the at-fault party on your behalf (for the benefits they paid out). You won't have to do a thing.

Good luck; if you need any help, feel free to call one of my offices in either Pontiac (248-322-4565) or Bloomfield Hills (248-745-8555). I worked for Allstate insurance for 9 years handling these types of claims, and also worked for an insurance defense firm for years.

Steve Afton