Occasionally, a state will choose to pass a no-fault insurance law and this can have dramatic consequences for those who are seeking compensation for their injuries after an accident. If you were involved in an accident in a state such as Michigan, it's important to make sure that your research is not out-of-date when crafting a legal defense.
Advantages of No-Fault Insurance
There are some advantages to living in a no-fault state. For example, the process of seeking compensation for your car accident is much more streamlined. You do not have to worry about your claim being denied. You also do not have to prove that the other motorist was at fault.
Disadvantages of No-Fault Insurance
With no-fault insurance, you will be limited on what types of claims you may make. For example, you may not be able to file a claim for pain and suffering. Also, you will usually not be able to settle with the other driver regardless of his culpability.
However, this doesn't mean that you cannot file a lawsuit against the other party. You have every right to sue the other party if he has caused you significant bodily harm and if you must pay for substantial medical bills. However, you will want to speak with a no-fault insurance attorney before you file such a claim.
You will also want to hire a lawyer who is experienced practicing law in your state and has the proper license for your state. Each state is unique in how its no-fault rules work. There are some states that allow you to choose a no-fault policy and there are other states where no-fault is mandatory. Some no-fault states require that you pursue property damage claims against your insurance provider and others require that you seek compensation from the other party.
Some states place limits on how you may sue a wrongdoer for non-economic damages. Non-economic damages typically refer to damages such as mental anguish. There may be a monetary threshold that limits how much you may sue for. This could be a single number, such as $1,000, or might be based on a formula that takes several factors into account. There may also be an injury threshold that limits how you can sue based on the type of injuries you have sustained. The threshold is designed to prevent you from filing a lawsuit over every individual injury that you suffer from.
If you're wondering what limitations your state may have for injury lawsuits, talk to a no-fault insurance attorney today.