Michigan has a history of being dependent on cars for transportation due to being the car manufacturing capital of the World. Michigan does not have the mass transportation system infrastructure like other States with major cities. Michigander's primarily rely on their vehicles for their daily transportation needs. In Michigan, you’re seond largest purchase next to your home in life is your car, so when you’re in a car crash auto accident in Michigan, damage to your vehicle can disrupt your life financially. You may lose your mode of transportation for a long period of time. Understanding your rights to claiming vehicle damage in Michigan is very important. You should also check your auto insurance policy for additional coverages that may save you money in these situations. Our law firm has helped many car accident claimants over the past 30 years to recover car crash mini tort damages.
Michigan’s auto no-fault law changed in 2019 for car accident mini-tort claims. Effective July 2020, Michigan’s mini-tort maximum for vehicle damages increased from $1,000 to $3,000. In order to qualify for mini tort damages, the party pursuing compensation for vehicle damage must prove that the other driver was at-fault. In cases of shared fault, mini tort damages can be collected on the shared fault basis. In other words, if the person pursuing mini tort vehicle damage compensation is found to be 50% at-fault for the collision, they will only be able to collect up to 50% from the other driver involved. You will need to prove your claim to the at fault driver's insurance company. Our Michigan free police report service can help prove who was at fault in a car crash claim.
If your vehicle sustains collision damages, you can recover a maximum of $3,000 from the at-fault party. In most cases, however, $3,000 will come short of repairing or replacing your vehicle. How do you cover the cost of repairs to your damaged vehicle? You should also check whether you purchased comprehensive or collision coverage insurance, to see if you can receive additional compensation for vehicle damages.
Comprehensive coverage is a type of car insurance damage coverage that protects your vehicle from car accidents involving falling trees, hail storm, and deer accident. Your collision coverage will only protect your car when it's in a crash with another vehicle or object. All these types of other auto coverages are optional coverages that many people don't understand or fail to realize exist. If you bought PLPD insurance, then you probably don’t have these additional auto insurance coverages.
Collision coverage only pays for the fair market value of your vehicle at the time of the accident, not what your loan amount is or how much it will cost to replace your vehicle. Therefore, consumers purchasing a new vehicle who only put down a small downpayment on a large loan may find themselves in debt after a collision because the fair market value of the vehicle may be less than they owe to the bank on the vehicle. In this unfortunate situation, the consumer must continue making loan payments on the damaged vehicle despite no longer having use or owning the vehicle. Our recommendation for avoiding this bad financial situation is to be careful selecting the size of the loan you take out at the time of purchasing a new car. Lastly, always try to negotiate for a higher car collision settlement with the auto insurance company.
If you’ve been in a car accident in Michigan, our dedicated and experienced lawyers can help you. Call today to speak to an experienced auto accident lawyer at 866-HIRE-JOE for a FREE Consultation.
