Auto insurance claims in MI are governed by a set of laws that limit the length of time that a party can file a claim and the amount of compensation an injured party can receive. A party that fails to adhere to these laws can find their claim dismissed or denied.
Statute of Limitations in MI
Auto insurance claims in MI must be brought within two years of the injury occurring. However, if the injury is such that it could not reasonably have been discovered until a later date, a claimant has two years from the date injury could reasonably be discovered to file a claim. This exception could extend the statute of limitations much longer than the two years. Failure to file within those two years or according to the exceptions of the rules, though, could result in dismissal of the claim.
Damage Limitations in MI: Economic Damages
There is no limit on the amount of damages an injured party can receive as compensation for their economic damages. Economic damages include all damages calculable due to loss or expenses as a result of the injury. Past or future medical expenses and lost wages are examples of economic damages.
Damage Limitations in MI: Non-Economic Damages
Michigan is unusual in that it limits the amount of damages that can be awarded to an injured party for his non-economic damages. Non-economic damages include pain and suffering and other, similar awards. The MI statute that limits the amount of awardable non-economic damages differentiates the amounts based on the cause of the personal injury. The statutory limit on non-economic damages ranges from $250,000 - $500,000.
Punitive Damage Limitations
Michigan does not allow awards of punitive damages, which are those awards intended to punish the wrongdoing party. However, MI law does permit an award of “exemplary” damages, which is defined as damages intended to compensate an injured party for emotional distress and mental suffering. There is no cap on this type of damage award, but it is reviewed closely if awarded by a jury.
Getting Legal Help
If you have been involved in an auto accident in MI and want to know the damage caps and time limitations on your claim, seek legal assistance. An attorney will review the facts of your case and discuss with you any applicable limitations to your case.
