Michigan Personal Injury Insurance Claims — How to File

Most personal injury claims in Michigan are resolved through insurance — the at-fault party's liability coverage, your own policy, or both. The insurance process is not designed to be fair to the claimant. Understanding how it works, what the insurer's strategies are, and how Michigan's rules affect the dynamic is essential to protecting the value of your claim.

Liability insurance (the other party's coverage)

The at-fault party's liability insurance is the primary source of recovery in most personal injury claims. Michigan requires minimum auto liability coverage of $250,000 per person / $500,000 per accident bodily injury, $10,000 property damage (insureds may opt down to $50,000/$100,000); PIP unlimited medical (choice options available since 2020) (per-person bodily injury / per-accident bodily injury / property damage) §500.3009. These minimums may not cover serious injuries.

Uninsured/underinsured motorist coverage (UM/UIM)

UM/UIM coverage provides critical protection. It pays when the at-fault party has no insurance (UM) or insufficient insurance (UIM) to cover your damages. Unlike liability claims against another party, UM/UIM claims are against your own insurer — but disputes about the claim's value are common.

Medical payments coverage (MedPay)

MedPay covers your medical expenses regardless of fault, up to the policy limit. It pays quickly and does not require a fault determination. If your policy includes it, use it — your insurer cannot raise your rates solely because you filed a MedPay claim after an accident.

Other policies

• Homeowner's / renter's insurance — covers Premises liability claims (injuries on the insured's property)
• Commercial general liability — covers business-related injuries on commercial property or caused by business operations
• Umbrella policies — provide additional coverage above the primary policy limits. If the at-fault party has an umbrella, it can be a significant additional source of recovery.

Under Michigan's modified comparative fault rule, the adjuster will try to push your fault to 51% or higher — because at that threshold, the insurer pays nothing.

The adjuster's job is to resolve your claim for as little as possible. Understanding their tactics helps you make better decisions:

• Quick settlement offers — designed to close the claim before you understand the full extent of injuries. Some injuries take time to fully manifest.
• Recorded statements — used to find inconsistencies, admissions of fault, or statements that minimize injuries. You are not obligated to provide one to the other party's insurer.
• Blanket medical authorizations — requesting access to your entire medical history to find pre-existing conditions they can use to argue the injury predates the accident. Only authorize release of records relevant to the current injury.
• Surveillance — in higher-value claims, insurers may hire investigators to photograph or video you in daily life, looking for activities that contradict your claimed limitations.
• Delay — some insurers deliberately slow-walk claims, hoping financial pressure will force you to accept a lower amount.

Michigan's minimum insurance requirements ($250,000 per person / $500,000 per accident bodily injury, $10,000 property damage (insureds may opt down to $50,000/$100,000); PIP unlimited medical (choice options available since 2020)) §500.3009 can be exhausted by a single serious injury. When the at-fault party's coverage is insufficient:

• Your UM/UIM coverage is the primary backup — and may provide limits equal to or greater than the at-fault party's liability coverage
• Umbrella policies held by the at-fault party may provide additional coverage above their primary limits
• Stacking — in some states, UM/UIM coverage from multiple vehicles on the same policy can be stacked for higher limits
• Personal assets — in rare cases, pursuing the at-fault party's personal assets is an option, but most individuals are effectively judgment-proof

A release (also called a settlement agreement) is a binding contract. Once you sign it, you cannot reopen the claim — even if your condition worsens, new injuries are discovered, or you realize the settlement was inadequate.

• Do not sign a release until you have reached maximum medical improvement
• Understand exactly what rights you are giving up — some releases bar all claims against all parties
• If you have health insurance or Medicare liens, they must be satisfied from the settlement