Michigan's no-fault system pays your medical bills and lost wages through your own insurance after a car accident. But if another driver caused the crash and your injuries are serious, a second claim is available against that driver directly.
Most accident victims in Michigan do not know they may have both claims running simultaneously, and missing the second one means leaving the most significant compensation off the table.
Kajy Law handles only accident cases. Our 10 attorneys and 35+ legal professionals have recovered over $100 million for Michigan accident victims, and we work on contingency, meaning no fee unless we recover for you. Call us at 248-702-6641 or contact us online for a free case review.
Injured in an Accident? Call Kajy Law Now!
What Is a Third-Party Car Accident Claim in Michigan?
A third-party car accident claim is a lawsuit filed against the driver who caused your accident, separate from the no-fault PIP benefits you receive through your own insurer. In Michigan, this is the primary path to recovering pain and suffering, excess medical costs, and other damages that no-fault does not cover.
| Feature | First-Party (No-Fault PIP) | Third-Party Claim |
|---|---|---|
| Who pays | Your own insurer | At-fault driver's insurer |
| What it covers | Medical expenses, lost wages | Pain and suffering, excess costs |
| Fault required | No | Yes |
| Deadline | 1 year notice | 3 years to file |
Both claims are separate but run simultaneously. Filing one does not affect the other. Most Michigan accident victims with serious injuries have both available, and both should be pursued.
Call us to find out whether you have a third-party claim.
Do You Qualify to File a Third-Party Claim in Michigan?
To file a third-party claim in Michigan, you must meet two requirements: the other driver must have been at fault for the accident, and your injuries must meet Michigan's serious injury threshold under MCL 500.3135.
Michigan's serious injury threshold requires that you demonstrate one of the following:
Serious impairment of a body function. This is the most common threshold in Michigan third-party claims. It means an objectively manifested impairment of an important body function that affects your general ability to lead your normal life.
The impairment does not need to be permanent, but it must be significant enough to affect daily activities in a meaningful way.
Permanent serious disfigurement. A lasting and visible change to your physical appearance that is serious in nature.
Death. A fatal accident that gives rise to a wrongful death claim under Michigan's Wrongful Death Act.
Note: Michigan courts have developed a significant body of case law around the serious impairment threshold. Whether your injuries meet the standard depends on the specific facts of your case, including the nature of the injuries, the medical documentation, and the impact on your daily life.
An attorney can assess this threshold during the initial case review.
Michigan's comparative fault rules under MCL 600.2957 also apply. If you shared some responsibility for the crash, your third-party recovery is reduced proportionally. A claim is barred only if you are found more than 50% at fault.
Hear From Our Clients
What Compensation Is Available Through a Michigan Third-Party Claim?
A successful third-party claim in Michigan allows you to recover damages that no-fault PIP does not cover, including pain and suffering, excess medical costs beyond your PIP limits, and long-term economic losses.
These categories often represent the largest portion of what a seriously injured accident victim is actually owed.
Pain and suffering. Compensation for physical pain, emotional distress, loss of enjoyment of life, and the overall impact your injuries have had on your daily existence. This is the category insurers fight hardest to minimize because it has no fixed dollar amount.
Excess medical expenses. Medical costs beyond your PIP coverage limits. If your injuries require extensive treatment that exceeds your selected PIP level, those excess costs are recoverable through a third-party claim.
Lost wages beyond no-fault limits. No-fault PIP covers up to 85% of lost wages for a maximum of three years. A third-party claim can recover lost income beyond those limits, including future earning capacity if your injuries affect your ability to work long-term.
Loss of enjoyment of life. Compensation for activities, hobbies, and experiences your injuries have permanently or significantly prevented you from pursuing.
Mini tort vehicle damage. Michigan law allows a separate mini tort claim against the at-fault driver for up to $3,000 in vehicle damage not covered by your own insurance. This is a third distinct claim, separate from both no-fault PIP and the third-party pain and suffering claim.
Insurance adjusters for the at-fault driver's insurer are trained to minimize every one of these categories.
Early offers routinely exclude or undervalue pain and suffering and future economic losses. We have previously recovered $635,000 for an intersection collision resulting in ankle fractures, $500,000 for a driver who sustained back injuries requiring surgery, and $480,509 for a driver struck by a red-light runner.
View our full case results to see what Michigan accident victims have recovered with Kajy Law.
How Does a Third-Party Claim Work Alongside Michigan No-Fault Benefits?
Your no-fault PIP claim and your third-party claim are separate legal processes that run simultaneously and cover different categories of damages. Understanding how they interact is critical to ensuring you do not accidentally waive rights or accept a settlement that resolves more than you intended.
No-fault PIP is a first-party claim against your own insurer. It covers medical expenses, lost wages, replacement services, and attendant care, regardless of fault. This claim is governed by a one-year notice requirement under MCL 500.3145.
Third-party claim is against the at-fault driver and their insurer. It covers pain and suffering, excess medical costs, and economic losses beyond no-fault limits. The statute of limitations is three years from the date of the accident under MCL 600.5805.
Mini tort claim is a separate property damage claim against the at-fault driver for up to $3,000 in vehicle damage under MCL 500.3135.
The most common mistake Michigan accident victims make is accepting a settlement from the at-fault driver's insurer that resolves all claims including no-fault benefits. A release that is too broad can waive your right to future PIP benefits you are still entitled to receive.
Our team reviews every proposed settlement before it is signed to ensure nothing is waived that should not be.
Reach out before any settlement is signed.
What if the At-Fault Driver Does Not Have Enough Insurance to Cover Your Claim?
If the at-fault driver's liability coverage is insufficient to cover the full value of your third-party claim, underinsured motorist coverage on your own policy may bridge the gap. If the driver had no insurance at all, uninsured motorist coverage or the Michigan Assigned Claims Plan may apply.
Michigan requires drivers to carry minimum bodily injury liability coverage, but minimum limits are often far below the value of a serious injury claim. When that gap exists, these options apply:
Underinsured motorist coverage pays the difference between the at-fault driver's policy limit and your actual damages, up to your own UIM policy limit. Under MCL 500.3009, UIM coverage is optional in Michigan but is included in many policies.
Uninsured motorist coverage applies when the at-fault driver had no insurance at all. UM coverage pays for pain and suffering and other non-economic damages up to your policy limits.
Direct lawsuit against the at-fault driver remains available regardless of insurance status. If the driver has assets or income, a judgment against them is enforceable. We assess the practical collectability of that judgment before recommending litigation as a primary strategy.
Multiple liable parties may exist in some crashes, including vehicle owners, employers of at-fault drivers, commercial carriers, or government agencies responsible for road conditions. Identifying every potentially liable party expands the pool of available coverage significantly.
How Do We Build a Third-Party Claim in Michigan?
Building a third-party claim that produces a fair result requires establishing fault, documenting the serious impairment threshold, and presenting the full scope of your damages in a way that is difficult for an adjuster to dispute.
Each of these requires specific evidence, and that evidence must be preserved and organized from the start.
Establishing fault. Police reports, witness accounts, traffic camera footage, vehicle black box data, and crash reconstruction analysis can all establish how the accident happened and who was responsible. We move immediately to secure this evidence before it is overwritten or lost.
Documenting the serious impairment threshold. Medical records, treatment history, physician opinions, and documentation of how your injuries affect your daily life are all critical to establishing the threshold under MCL 500.3135.
Gaps in medical treatment can be used by adjusters to argue your injuries are not serious. We work with your treating providers to ensure the documentation is complete and consistent.
Calculating damages comprehensively. Pain and suffering, future medical costs, lost earning capacity, and loss of enjoyment of life all require documentation beyond a simple medical bill. We build the full picture of your damages before any settlement discussion begins.
Handling all communications with the at-fault driver's insurer. Once we are involved, adjusters deal with us, not with you. That prevents recorded statements, premature settlement offers, and other tactics that reduce claim value before the full extent of your damages is known.
Shawn McKay, our Head of Litigation and a Super Lawyers Rising Star, leads the team that handles third-party claims at our firm.
When a fair settlement cannot be reached, he takes cases to court. Lawrence Kajy, our founder and National Trial Lawyers Top 40 Under 40 honoree in 2024 and 2025, published research on Michigan's No-Fault Act and built this firm around understanding exactly how the system works in practice.
Talk to our team about building your third-party claim.
Ask Kajy Law
Can I file a third-party claim in Michigan if I was partly at fault for the accident?
Yes, as long as you are found 50% or less at fault. Michigan's modified comparative fault rule reduces your third-party recovery proportionally to your share of fault but does not bar the claim entirely unless you are found more than 50% responsible.
The specific facts of the accident determine that allocation, which is why a thorough investigation matters from the start.
What happens if the at-fault driver's insurance company contacts me before I hire a lawyer?
Do not provide a recorded statement or accept any offer before speaking with an attorney. The at-fault driver's insurer is working to minimize the payout from the first contact.
Early offers are typically made before the full scope of your injuries and damages is known. Once our team is involved, all communications with that insurer go through us.
How long does a third-party car accident claim take to resolve in Michigan?
The timeline depends on the complexity of the accident, the severity of your injuries, the number of parties involved, and whether the case resolves through settlement or requires litigation. Cases with clear liability and documented injuries may resolve in months.
Cases with disputed fault or significant damages often take longer. We give clients realistic timelines from the beginning and maintain consistent communication throughout.
Can I still file a third-party claim if I already accepted no-fault PIP benefits?
Yes. Accepting no-fault PIP benefits does not waive your right to file a third-party claim against the at-fault driver. The two claims are legally separate.
However, accepting a settlement from the at-fault driver's insurer that includes broad release language could affect your no-fault benefits. We review every proposed release before it is signed to protect your rights across both claims.
What is the mini tort claim and how does it relate to my third-party claim?
Michigan's mini tort law allows you to recover up to $3,000 from the at-fault driver for vehicle damage not covered by your own insurance. It is a third distinct claim, separate from both your no-fault PIP benefits and your third-party pain and suffering claim.
All three claims can be pursued simultaneously. The mini tort has a three-year statute of limitations and is typically resolved independently from the injury claim.
FAQ for Michigan Third-Party Car Accident Claims
How long do I have to file a third-party claim in Michigan?
Michigan's statute of limitations for a third-party car accident claim is generally three years from the date of the accident under MCL 600.5805. This deadline is separate from the one-year notice requirement for no-fault PIP benefits under MCL 500.3145.
Both deadlines apply independently, and missing either one can eliminate that source of compensation. Acting early also preserves the evidence needed to establish fault and the serious impairment threshold.
What if my injuries got worse after I settled my third-party claim?
Once a third-party settlement is signed and a release is executed, the claim is generally final. Michigan courts do not allow reopening a settled claim based on worsening injuries. This is one of the most important reasons not to settle a third-party claim before the full extent of your injuries is known and documented.
We advise clients on timing and ensure no settlement is signed prematurely.
Does the at-fault driver have to pay out of pocket if their insurance is not enough?
If the at-fault driver's liability coverage is insufficient, their personal assets may be subject to a judgment. However, collecting beyond policy limits requires the driver to have assets or income sufficient to satisfy the judgment. In practice, most recovery in excess of policy limits comes through UIM coverage on your own policy rather than direct collection from the driver.
We assess all available sources before recommending a strategy.
Can a third-party claim be filed against someone other than the driver who hit me?
Yes. In Michigan, third-party liability can extend beyond the at-fault driver. Depending on the circumstances, other potentially responsible parties may include:
- The vehicle owner, if they negligently entrusted the car to an unfit driver
- The driver's employer, if the crash occurred during the course of employment
- A commercial carrier whose driver caused the accident
- A government agency responsible for dangerous road conditions
- A vehicle manufacturer if a defect contributed to the crash
We investigate every potentially liable party as a standard part of every case.
What if I was a passenger in the at-fault vehicle?
Passengers in the at-fault vehicle may file a third-party claim against the driver who caused the accident, even if that driver was the person who gave them a ride. Your no-fault PIP benefits are available through your own policy or through the vehicle's policy depending on the priority rules.
A third-party claim for pain and suffering against the at-fault driver is available if your injuries meet the serious impairment threshold, regardless of your relationship with the driver.
Related Resources from Kajy Law
These pages may be helpful depending on your situation:
- Michigan Car Accident Lawyers — How our team handles crash claims and insurance disputes across Michigan.
- Understanding Personal Injury Protection (PIP) in Michigan — A detailed explanation of how no-fault PIP benefits work and how they interact with a third-party claim.
- Michigan Car Accident Settlements — Case results our firm has achieved for Michigan accident victims.
- Michigan Truck Accident Lawyers — How third-party claims work differently when a commercial truck is involved.
- Michigan Motorcycle Accident Lawyers — Third-party claim considerations specific to motorcycle accidents in Michigan.
- Contact Kajy Law — Reach our team directly.
The System Pays You Twice When Both Claims Are Filed. Most People Only File Once.
Michigan's no-fault system was built to ensure accident victims receive medical coverage quickly and without a fault determination. But it was also built to allow a second, separate claim against the at-fault driver when injuries are serious enough to justify it.
Those two claims together represent the full scope of what Michigan law makes available to injured accident victims.
Most people who handle their own accident claims in Michigan file only the no-fault PIP claim because it is the obvious one. The third-party claim requires knowing the threshold, building the evidence, and pursuing it through a process that the at-fault driver's insurer is actively working to minimize.
Lawrence Kajy built this firm because he saw what happened when accident victims did not have attorneys who understood both sides of Michigan's no-fault system.
Preston Denha has spent his career ensuring that insurers cannot use procedural complexity to avoid paying valid claims. Shawn McKay handles the cases that require a courtroom when a fair settlement cannot be reached any other way.
Our Southfield office serves accident victims throughout Michigan. Free consultations, contingency fee basis, no cost unless we recover for you.
Call Kajy Law at 248-702-6641 or contact us online to schedule your free case review.
Kajy Law Firm 18000 W Nine Mile Rd #1400, Southfield, MI 48075