If you were injured in a Michigan car accident caused by someone else, a third-party claim allows you to seek compensation beyond what No-Fault insurance provides. Unlike first-party claims which cover medical bills and lost wages under your own policy, a third-party claim is filed against the at-fault driver’s insurance for pain and suffering, excess medical expenses, and additional financial losses.

Michigan’s No-Fault law limits when you can sue for pain and suffering. To qualify for a third-party claim, you must prove that the other driver was at fault and that your injuries meet Michigan’s “serious impairment of body function” threshold. Insurance companies often dispute these claims, making it crucial to understand your rights and legal options.

What Is a Third-Party Car Accident Claim?

In Michigan, a third-party car accident claim is a legal action against the at-fault driver’s insurance company for damages that go beyond your No-Fault benefits or PIP benefits. While No-Fault insurance covers your immediate medical bills and lost wages, it does not compensate for pain and suffering or long-term financial losses. That’s where a third-party claim comes in.  To successfully file a third-party claim in Michigan, you must prove:

  • The other driver was at fault for the accident.
  • Your injuries meet Michigan’s legal threshold for a “serious impairment of a bodily function.”
  • Your damages exceed your No-Fault insurance benefits, such as medical bills surpassing your PIP coverage.

Because Michigan’s No-Fault law restricts when you can sue, insurance companies often deny these claims and try to minimize payouts. That’s why working with an experienced car accident lawyer can help maximize your compensation.

When Can You File a Third-Party Claim in Michigan?

Not every car accident victim in Michigan is eligible to file a third-party claim. Under Michigan’s No-Fault law, you can only sue the at-fault driver if your injuries meet certain legal criteria. If your damages are limited to medical bills and lost wages covered by No-Fault insurance, you typically cannot pursue additional compensation.  The table below outlines the key requirements for filing a third-party claim:

✅ Requirement🔍 Explanation
🚗 The other driver was at faultYou must prove that another driver’s negligence caused the accident.
🤕 Your injuries meet Michigan’s legal thresholdThe injury must cause a “serious impairment of a bodily function” to qualify for pain and suffering compensation.
💰 Your damages exceed No-Fault benefitsIf your medical expenses surpass your PIP coverage or you have extensive lost wages, you may pursue additional compensation.
⏳ You file within the statute of limitationsYou have three years from the accident date to file a third-party lawsuit in Michigan.

Because insurers aggressively fight third-party claims, having strong evidence and legal representation can make the difference between a denied claim and full compensation.

What Damages Can You Recover in a Third-Party Lawsuit?

A third-party lawsuit allows Michigan car accident victims to seek compensation beyond their No-Fault insurance benefits. While PIP covers medical expenses and some lost wages, it does not compensate for pain and suffering or certain long-term financial losses.  The table below outlines the types of compensation available in a third-party claim:

✅ Damage Type🔍 What It Covers
😖 Pain and SufferingCompensation for physical pain, emotional distress, and reduced quality of life.
🏥 Excess Medical ExpensesAny medical bills exceeding your No-Fault PIP coverage limits.
💼 Lost Wages Beyond PIP LimitsIncome loss beyond the three years covered under No-Fault insurance.
♿ Permanent Disability & DisfigurementCompensation for life-altering injuries, such as paralysis or amputations.
⚖️ Wrongful Death DamagesFuneral costs, loss of companionship, and financial support for surviving family members.

How to Prove Negligence in a Third-Party Car Accident Claim

To win a third-party car accident claim in Michigan, you must prove that the other driver was negligent. This means demonstrating four key legal elements:

  • Duty of Care – The at-fault driver had a legal responsibility to drive safely and follow traffic laws.
  • Breach of Duty – The driver acted carelessly or recklessly, violating traffic laws or engaging in dangerous behavior (e.g., speeding, running a red light, distracted driving).
  • Causation – Their negligence directly caused the crash and your resulting injuries.
  • Damages – You suffered measurable losses, such as medical bills, lost wages, and pain and suffering.

Evidence plays a crucial role in proving negligence. Police reports, witness statements, medical records, and accident reconstruction analysis can help establish fault and strengthen your claim.

Common Defenses Used Against Third-Party Claims

Insurance companies often try to avoid paying full compensation by using various legal defenses. Understanding these tactics can help you fight back and protect your claim.  Below is a table outlining common strategies insurers use to deny or reduce third-party claims and how to counter them:

🚨 Defense Tactic⚖️ How It Affects Your Claim🔎 How to Challenge It
Comparative NegligenceInsurer argues you were partially at fault, reducing your settlement based on your percentage of blame.Gather strong evidence (e.g., police reports, witness statements, accident reconstructions) to dispute fault.
Pre-Existing InjuriesClaims your injuries existed before the crash, limiting compensation.Use medical records to show new or worsened injuries caused by the accident.
Delayed Medical TreatmentSuggests your injuries aren’t serious if you didn’t seek immediate care.Seek medical attention ASAP and follow all recommended treatments.
Disputing Injury SeverityDownplays your pain and suffering, offering a low settlement.Provide medical records, doctor statements, and expert opinions to prove impact.
Lowball Settlement OffersInsurer offers far less than what your case is worth.Don’t accept the first offer—negotiate or consult a lawyer for a fair valuation.
Claim Filing DeadlinesArgues your claim was filed too late under Michigan’s statute of limitations.File within three years of the accident to preserve your legal rights.

💡 Insurance companies prioritize their profits, not your recovery. If they use these tactics to deny or reduce your claim, an experienced car accident lawyer can fight back and secure the compensation you deserve.

Frequently Asked Questions About Third Party Claims in Michigan

Who can file a third-party car accident claim in Michigan?

Anyone injured in a crash caused by another driver can file a third-party claim if their injuries meet Michigan’s legal threshold for a serious impairment of body function.

What compensation can I recover in a third-party claim?

You can seek pain and suffering damages, excess medical expenses, lost wages beyond PIP limits, and other losses not covered by No-Fault insurance.

How long do I have to file a third-party claim?

Michigan law gives you three years from the date of the accident to file a lawsuit against the at-fault driver.

What if the insurance company denies my third-party claim?

Insurance companies often dispute these claims. If yours is denied, you can appeal the decision, negotiate a higher settlement, or file a lawsuit with the help of a lawyer.

Can I still file a claim if I was partially at fault for the accident?

Yes, but Michigan follows a modified comparative negligence rule—if you’re more than 50% at fault, you cannot recover pain and suffering damages.

Do I need a lawyer for a third-party claim?

Third-party claims are complex, and insurance companies fight hard to limit payouts. A lawyer can build a strong case, prove negligence, and negotiate for the compensation you deserve.

Contact a Michigan Car Accident Lawyer for Help with Your Third-Party Claim

If you’ve been injured in a car accident caused by another driver, you deserve full compensation for your pain and suffering, medical expenses, and financial losses. But insurance companies don’t make it easy on you, they often deny claims, minimize injuries, or shift blame to reduce payouts.

At The Clark Law Office, we fight for accident victims ensuring they get the maximum compensation possible under Michigan law. Unlike big firms that treat you like a case number, we provide personalized legal representation and aggressive advocacy to protect your rights.

Don’t let an insurance company decide what your case is worth. Call us today for a free consultation, and let’s discuss how we can help you recover the compensation you deserve.

See how fault-based claims relate to no-fault benefits in our insurance and no-fault guide.

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