Michigan’s Threshold for Serious Impairment in Car Accident Claims

The Difficulties Presented by No-Fault Insurance States

Many people see no-fault insurance as a great thing. When people suffer injuries in car accidents, they don’t have to go through the headache of litigation to secure compensation. However, this often means financial recovery from the liable party isn’t possible. That’s why understanding Michigan’s threshold for serious impairment in car accident claims is vital.

Under Michigan law, all drivers have to have personal injury protection (PIP) as part of their auto insurance. In most cases, you’ll have to seek compensation from your own insurer – regardless of who is at fault. However, there are thresholds in Michigan that, if met, allow injured individuals to go after liable parties and their insurers for fair compensation.

Unfortunately, meeting this threshold can be difficult.

What’s the Serious Impairment Threshold in Michigan?

Some people assume that the threshold for seeking personal injury damages in Michigan relates to the degree of monetary loss suffered. However, this is not accurate. In fact, PIP policies often provide hundreds of thousands of dollars in coverage. Rather than monetary considerations, the threshold focuses on a manifested impairment of an important bodily function.

There are three components considered to determine whether this threshold has been met:

• Objectively manifested impairment: The injury must be observable or perceivable from actual evidence or symptoms. Pain without medical proof does not qualify
• Important bodily functions: The affected body function must be significant to a person’s ability to participate in daily life (e.g., walking, lifting, using one’s hands)
• Affecting general ability to lead a normal life: The injury must have a significant effect on how an individual is able to live their life relative to before their injury

If each of these elements exists, then the injured individual may be entitled to a third-party claim, which opens the door to substantially more compensation. That’s because no-fault PIP insurance doesn’t typically cover non-economic damages, such as pain and suffering, emotional distress, or loss of enjoyment in life.

Filing a third-party claim allows you to hold liable parties fully responsible for their negligence.

What Qualifies as a Serious Impairment in Michigan?

Many people immediately opt to handle their losses through their own PIP insurance. This is frequently the case if they believe their injuries wouldn’t meet the serious impairment threshold. However, such an assumption could prove incredibly costly. In reality, a person doesn’t have to be paralyzed or lose a limb to qualify for a third-party claim.

Serious impairments could include:

• Broken bones, skull fractures, or fractures of other serious bones
• Other major orthopedic injuries
• Traumatic brain injuries
• Permanent nerve damage
• Loss of mobility or use of a body part
• Chronic conditions that limit everyday activities
• Loss of limb
• Serious visible disfigurement
• Measurable brain or mental impairment
• Loss of an organ

The important thing to remember about Michigan’s threshold for serious impairment is that a lot of subjectivity goes into the process. The simple fact is that two injuries could fall into the same category while having very different outcomes. For instance, a traumatic brain injury could be anything from a minor concussion to permanent and severe brain damage.

Clearly, such a difference would have a major effect on any potential third-party claim. That’s why it’s important to understand the types of evidence required in these cases.

What Evidence Do You Need in Michigan Car Accidents?

Due to the subjectivity of the term “serious impairment” and the varying degrees of potential injuries, injured individuals must be able to prove how the accident has affected their lives. Unfortunately, this isn’t as simple as saying that you’re in constant pain or have been unable to do things that you enjoy. You need evidence that you can present in court if necessary.

Such evidence can include:

• Medical records: Diagnoses, treatment plans, expert testimony, or imaging results
• Activity limitations: Begin documenting how your injury is affecting your personal, recreational, and employment activities
• Pre-accident comparison: Testimony or evidence showing how life has changed due to the injury

Keep in mind that your own testimony is unlikely to be enough to prove that the serious impairment threshold in Michigan has been met. Fortunately, there will typically be evidence of your limitations. Perhaps you missed a significant amount of work, or maybe you could no longer pick up your children due to an inability to drive.

Put simply, the evidence that a serious impairment has occurred is typically observable – you just have to know where to look.

How to File a Third-Party Car Insurance Claim in Michigan

If you believe your injuries meet the serious impairment threshold, then you may be able to successfully file a third-party accident claim. However, it’s advisable to speak with an attorney before doing so. The first step in this process is to alert the at-fault driver’s insurer of your intent to file a claim. At this point, they may immediately start working against you.

After filing a claim, settlement negotiations typically take place. This is where you’ll try to reach an agreement with the other driver’s policy provider over how much compensation you deserve. If they refuse to fairly compensate you — or claim that your injury doesn’t meet the serious impairment threshold — it may become necessary to file a lawsuit.

Do You Need an Attorney?

Under Michigan law, no one is required to hire an attorney. If you want, you can attempt to gather evidence of serious impairment, engage in settlement negotiations, and even go to court on your own. However, taking this route frequently ends badly. There’s a reason that injury victims who have legal counsel secure higher compensation on average.

When you try to navigate the legal system alone, you’re not going up against novices. Insurance adjusters are trained to minimize payouts, and these companies’ lawyers are extremely skilled at litigating injury cases. Even if you meet Michigan’s threshold for serious impairment in car accident claims, moving forward without a lawyer can lead to unfavorable outcomes.

At Sigal Law Firm, we offer free consultations and are committed to securing the compensation our clients deserve. Contact us at 248-671-6794 to schedule your in-depth case review.