Michigan Drivers Mini Tort Claim – LPD

In Michigan there is a no fault law that allows drivers to file a mini tort claim for small amounts of property damage. Each person’s insurance covers their property and the tort claim is just a way to exploit a gap in the law. It is important to understand how this law affects each type of driver so that you can protect yourself in advance.

Driver that are not at fault

A mini tort allows you to file a claim when you are less than half at fault in a vehicular collision. In the state, only the driver less at fault is allowed to file this claim and there are some other restrictions that also must be adhered to;

  • The person filing must have a car that was visibly damaged or totaled
  • The person filing must have valid car insurance
  • The person who is being filed against must stay at the scene and provide their information.
  • The car that is damaged must not have collision coverage
  • The car that is damaged must have standard coverage with a deductable

For example:

Driver number one was hit in the back of their car by driver number two. Driver one only has PLPD on her car insurance policy. The physical damage to driver number one’s car is very bad. Driver number one is allowed to file a mini tort against driver number two since she was not the wrong party and her car is not covered by collision insurance.

Do keep in mind that the coverage by a tort claim is very limited and there are filing restrictions such as;

  • A maximum payout of $500
  • There are no provisions for injuries to ones person
  • There is a separate claim process for personal injury
  • The claim is only applicable to the car, not for medical purposes
  • A estimate from a reputable body shop is required that shows a minimum of $500 in damage

Example Further Explained;

Driver number one has a lot of damage to their car, however according to state law, driver number one is only able to receive five hundred dollars as compensation via the tort claim option.

Insured drivers at fault

If there is a limited amount of property damage, then you can be protected from a mini tort claim. They person who is filing can only get five hundred dollars as a results of the claim after the accident. If you have a active policy on your car with limited damage to property provision, you won’t be able to be a party to a law suite for the damages. There are three stages for this in Michigan.

  • A car crash where you are at fault
  • A max $500 judgment
  • There is no deductable

Non insured drivers at fault

If you are a driver without car insurance, then there is no protection under the law for you against mini tort claims. You are allowed to be sued in court for the whole amount of the cars damage due to the crash.

In addition, you will face additional fines for driving without valid insurance. The best option is to avoid driving without insurance, driving carefully, or working out a personal agreement in the even of a crash.

Collision coverage in a car insurance policy is often costly; the laws in the state however make it unwise to take it off of your policy in the off chance that you have an accident. This can be frustrating for people who are carful drivers, but are punished for the driving habits of others.