Michigan’s No-Fault “mini-tort” Limit Will Increase October, 2012

On October 1, 2012 The House Bill 5362, will increase Michigan’s No Fault “mini-tort” limit from its current limit of $500 to an increase of $500 making it $1000 for any vehicle damage not covered by insurance. This mini-tort allows you to sue the other driver if you were not any more than 50% at fault of the accident.

This mini-tort is an exception to Michigan’s No-Fault principle, this allows any persons involved in an accident to sue the at-fault party for physical damage not covered by insurance. The literature on the mini-tort has changed over the years it debuted at $400 and raised to where it is currently $500 in 1995, now with the legislature raising it to $1000 reflects the growing number of $1000 deductibles for insurance collision claims.

It is expected that insurance providers will update their policies over time to reflect this change since some policies state they will only pay up to $500 for mini-tort provision. It is possible the insurers who chose the $1000 deductible is unaware of the liability limit $500 that’s stated in their policy. Legislatures chose not to address this in their legislation but agreed to address at a later date for an adjustment period.

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