Will My No-Fault Insurance Go Up If I Have a Crash in Michigan?

heading divider
Car Insurance Claim Form

Under Michigan law, all vehicle owners are required to carry minimum amounts of no-fault insurance. If you are involved in an accident, your no-fault insurance can pay for your medical bills, your lost wages, replacement services, and damage you cause to others’ property. As its name suggests, no-fault benefits are available to policyholders regardless of who is responsible for the accident.

However, having access to no-fault benefits does not mean you can claim those benefits free from consequences. If you were at fault for a Michigan car accident, you could see an increase in the cost of your no-fault insurance premiums. But even if you weren’t at fault, you could face an increase in certain circumstances.

How Much Does a No-Fault Accident Raise Your Auto Insurance Rates?

In fault states, your auto insurance rates do not go up after an accident because the at-fault driver’s insurance provider is expected to cover the costs of medical expenses, vehicle repairs, and other accident-related losses. If your insurance provider is not paying for anything, they have no reason to raise your monthly premiums.

But Michigan is a no-fault state. No-fault insurance providers can increase your insurance rates if you are substantially at fault (more than 50 percent) for an accident. However, your no-fault provider is responsible for covering your costs regardless, so there’s an incentive to increase your rates even if you weren’t at fault.

The magnitude of an increase in premiums after a no-fault accident can vary considerably from insurer to insurer. A 2021 survey conducted by insurance comparison site The Zebra suggested the average increase in insurance premiums after a no-fault accident was $67 per year.

Can I Sue After a No-Fault Accident in Michigan?

No-Fault Insurance MichiganIn some cases, yes. Although Michigan law largely protects insured vehicle owners from car accident lawsuits, you may have grounds for a personal injury lawsuit if:

  • The other driver was responsible for an accident that resulted in serious injury, permanent disfigurement, or death.
  • You were involved in the accident as a non-resident of Michigan while driving a vehicle that was not registered within the state.
  • You are a Michigan resident involved in an accident that occurred in another state.

Additionally, under Michigan’s mini-tort law, you can file a mini-tort lawsuit for up to $3,000 in vehicle damage if the other driver was 50 percent or more at fault. Compensation from a mini-tort claim is not meant to cover all of your costs related to vehicle damage, only the expenses that are not covered by your no-fault insurance policy.

Contact a Michigan Car Accident Attorney Today

If you suffered injuries in a car accident in Michigan, contact the experienced attorneys at Christensen Law for a free initial case evaluation. We will explain your legal rights, review your options, and determine the best path forward as you seek fair compensation for your losses.