Average Michigan Car Accident Settlements

If you’ve been involved in a car accident in Michigan, you’re probably worried about your future. How will you take care of yourself and your family, let alone your mounting medical bills, if you have severe injuries that keep you from working?

Motor vehicle accident settlements are meant to cover your current and future medical provider expenses as well as compensate you for loss of income, pain and suffering, and property damage. Since your financial well-being relies on your settlement to a certain extent, you might be wondering about how much money you could receive. 

Knowing the average Michigan car accident settlement amounts can help set realistic expectations and guide you through the legal process. In this article, we outline the different factors that can influence your settlement and how our Michigan accident lawyers can help.

Michigan Car Accident Settlements Explained

In Michigan, motor vehicle accident settlements are governed by the state’s no-fault insurance system. This system is designed to ensure that victims receive financial compensation promptly, regardless of who was at fault for the accident. Here’s a breakdown of the types of damages you might receive and who is responsible for paying them.

Personal Injury Protection (PIP) Benefits

Personal Injury Protection (PIP) benefits are a key component of Michigan’s no-fault insurance. These no-fault benefits are paid by your own insurance company and cover several types of damages:

• Medical Expenses: There is now PIP medical choice in Michigan. This means an insured has a choice of how much, if any, medical coverage to maintain on their auto insurance policy. An insured can choose to have unlimited, lifetime coverage or a policy capped at a specific dollar amount or opt-out of PIP medical completely and have auto accident medical expenses paid by Medicare or qualified health insurance plan. The choice made by an insured affects who pays primarily for their auto accident medical expenses.
• Lost Wages: If the accident prevents you from working, PIP benefits cover a portion of your lost income. This typically includes up to 85% of your gross wages, for up to three years.
• Replacement Services: If you need help with household tasks you can no longer perform due to your physical injuries, PIP benefits cover the cost of hiring someone to assist with chores, childcare, and other daily activities, up to $20 per day.
• Attendant Care: If you require in-home attendant or nursing care, PIP benefits pay for this service as well, whether provided by a family member or medical provider.

Property Protection (PPI) Benefits

Property Protection Insurance (PPI) benefits cover damage to another person’s property caused by your car. This includes damage to buildings, fences, or other stationary objects. These benefits are also paid by your own insurance company, up to a maximum limit of $1 million.

Third-Party Claims

In cases of bodily injury, permanent disfigurement, or death, you may be entitled to additional compensation through a third-party claim. This involves pursuing a claim against the at-fault driver for non-economic damages, such as pain and suffering and emotional distress. Non-economic damages are not covered by PIP benefits and require you to prove the other driver’s fault in court. You can also recover economic damages in the third-party claim that are not otherwise paid by your own insurance company.

Mini-Tort Claims

If your vehicle was damaged in the accident and the repair cost exceeds your insurance coverage, you can file a mini-tort claim against the at-fault driver for up to $3,000. This amount is meant to cover the portion of your repair cost that your insurance doesn’t cover.

Factors That Influence Auto Accident Settlements in Michigan

Each motor vehicle accident case is unique, and there is no standard or average settlement amount. Many factors influence the final settlement, making it important to understand how these elements may impact the outcome of your personal injury or insurance claim.

Severity of Injuries

The extent and severity of your injuries are major factors in determining a personal injury settlement amount. More severe injuries like traumatic brain injuries or spinal cord damage typically result in longer recovery times, higher medical expenses, and longer lasting damages, all of which tend to lead to higher settlements. 

Medical Expenses

More severe injuries, such as traumatic brain injuries or spinal cord damage, often require extensive medical treatment. This can include emergency care, surgeries, hospitalization, and ongoing rehabilitation. These injuries can also necessitate long-term medical care, including physical therapy, specialized medical equipment, and possibly home modifications to accommodate disabilities.

Lost Wages

Injuries that cause you to miss work, prevent you from returning to your previous job, or reduce your ability to work in the future can lead to claims for lost earning capacity. This aspect considers not just the immediate loss of income but also the long-term financial implications of being unable to work or having to take a lower-paying job due to physical limitations.

Impact on Daily Life

The recovery time for severe injuries is often prolonged, affecting your ability to return to work and perform daily activities. For instance, traumatic brain injuries may lead to cognitive impairments, affecting memory, concentration, and even personality. Spinal cord injuries can result in partial or complete paralysis, requiring lifelong care and assistance. These factors significantly increase settlement value as they reflect the profound and lasting impact on a person’s life.

Pain and Suffering

Severe injuries come with substantial pain and suffering, which are also considered in the settlement. Chronic physical pain, emotional trauma, and the loss of enjoyment of life are critical elements that contribute to the overall accident compensation. These non-economic damages are more subjective, but play a key role in ensuring that the settlement adequately reflects the true impact of the injuries.

Fault and Liability

Determining who is at fault for the accident can impact the settlement. There is often a disagreement over who was at-fault and whether there were more than one at-fault drivers in a crash. Experts are often needed to parse these issues. The degree of a defendant’s fault plays a role in determining the settlement amount.

Insurance Policy Limits

The limits of the insurance policies involved can also influence the settlement. Both your own PIP coverage and the negligent driver’s liability insurance have maximum payout amounts that can cap the total settlement, with the exception of unlimited PIP medical coverage. 

Because each auto accident case is different, working with an experienced attorney can help ensure that all these factors are thoroughly evaluated and that you receive fair compensation for your specific circumstances. 

How Long Does It Take to Receive a Settlement?

The time it takes to receive an auto accident settlement in Michigan can vary significantly from case to case. Several factors influence the timeline, making it important to understand the typical process and what might affect the duration.

In some instances, settlements can be reached relatively quickly. For example, if the injuries are substantial and the insurance policy limit is low, the insurance adjuster may decide to pay the entire policy amount promptly. This can expedite the process, allowing the injured party to receive their settlement sooner.

However, many cases take longer, usually up to a year or more, to reach a settlement. This is especially true if the victim is still recovering from their injuries and the long-term effects are not yet fully known. In such cases, it is important to wait until the full extent of the injuries and their impact on the victim’s life are clear before finalizing the settlement amount.

Once a settlement agreement is reached, the timeline for receiving the settlement check typically speeds up. In most situations, you should receive your settlement check within thirty to sixty days of signing the Settlement Release Agreement and returning it to the auto insurance company or defense attorney. However, there are exceptions – cases involving minor children or wrongful death may take longer as a court hearing is required to have the settlement approved by a judge.

Understanding these timelines can help manage expectations and ensure that you are prepared for the duration of the settlement process. If you have any questions or need assistance with your car accident case, the experienced lawyers at Conybeare Law Office are here to help guide you through every step.

How Can a Michigan Car Accident Lawyer Help?

While you are not required to have a lawyer to settle your car accident injury claim in Michigan, having an experienced attorney on your side can prevent serious mistakes and help you secure the compensation you deserve. 

Accurately Valuing Your Case

Determining the true value of your case can be challenging without legal expertise. An accident attorney can accurately assess the worth of your personal injury claim, preventing you from settling for less than you could potentially receive. This includes evaluating medical provider expenses, lost wages, and pain and suffering damages.

Identifying All Insurance Coverage

Insurance adjusters may not disclose all the insurance policies or limits applicable to your claim. Without this information, you might miss out on available compensation. A skilled attorney will track down all possible coverage, ensuring you receive the full amount to which you are entitled.

Protecting Your No-Fault Insurance Benefits

Signing a Release when settling your liability claim can inadvertently jeopardize your no-fault insurance benefits. This could result in losing coverage for medical provider expenses, lost wages, and other essential benefits. An experienced auto accident lawyer will ensure that your rights and benefits are protected throughout the settlement process.

Managing Potential Liens

There are potential liens on your settlement that you might need to pay back, such as those from health insurance companies or Medicare. If you’re unaware of these obligations, you could end up with significantly less money than expected or even risk losing future medical coverage from your insurer. A personal injury lawyer will help you navigate these issues, ensuring that your settlement accounts for all necessary liens.

Maximizing Your Compensation

Studies show that accident victims typically receive higher settlements when they have legal representation. Personal injury lawyers have the knowledge and negotiation skills to deal with auto insurance companies and help you achieve the best possible outcome.

While you can handle a car accident claim on your own, having a knowledgeable attorney can make a huge difference in the outcome of your case. If you need assistance with your claim, the accident attorneys at Conybeare Law Office are ready to help you navigate the legal process and secure the compensation you deserve.

Get a Free Consultation From a Michigan Car Accident Lawyer

Recovering from a car accident can be overwhelming, but understanding your legal options and the potential for a reasonable settlement can provide some clarity. At Conybeare Law Office, our experienced attorneys are dedicated to helping you secure the compensation you need to move forward. Our track record speaks for itself, with significant settlements and awards for our clients:

• $2,000,000 settlement for the estate of an 18-year-old fatally injured in a rear-end car crash.
• $1,750,000 jury verdict for a 46-year-old killed in a head-on collision with a dump truck.
• $3,122,000 arbitration award for a man who suffered a disabling brain injury in an automobile/truck accident.
• $1,000,000 settlement for a woman with a serious lower leg injury from a car accident.

These examples illustrate our commitment to achieving justice and fair settlements. If you’ve been involved in a car accident and need experienced legal representation, contact Conybeare Law Office. To schedule your free initial consultation with a personal injury attorney, call 269-769-BEAR or fill out this contact form. Remember: if it’s not fair, call the Bear!

Related: Cost to File a Lawsuit in Michigan