New Michigan Bill To Increase The Mini-Tort Limit

A new bill, HB 5632, has been signed into law by Governor Snyder that will increase the financial obligations of at-fault drivers. Michigan is presently one of several states that currently have no-fault insurance laws in place.

No-fault insurance refers to insurance policies that cover policyholders, regardless of who is at fault. Unlike most states where suing for damages is commonplace, it is mostly barred in Michigan due to the nature of the coverage drivers are required to get. However, there is a small exception to the rule: mini-tort provisions.

Mini-tort Provisions

According to onlineautoinsurance, “Michigan is the only state in the nation where a driver involved in a crash would be in a position to sue the at-fault party for a collision deductible.”

Many drivers have this kind of coverage in their policy. Essentially, you pay up to a predetermined amount, for example $500.00, and then your insurance company takes care of the rest up to the fair market value of your car.

Policies in most states require a form of property damage liability insurance to cover car repair or replacement costs for others if you are found at fault. In Michigan, damage to a vehicle is typically covered by that vehicle owner’s own insurance policy if they have collision insurance.

Under previous state regulations, drivers could only sue for up to $500.00 to recover their deductible. Under this new bill, the limit has been increased to $1,000.00. While drivers may not be able to recover the full costs of repairs from at-fault drivers, they can be reimbursed for their insurance deductible.

“Despite rising costs, the amount residents can collect for damages under the mini-tort provision hasn’t been increased in decades,” says State Representative Cindy Denby. “This common-sense reform will be helpful to Michigan drivers.”

Additional Coverage

Michigan drivers can further insulate themselves from financial obligations by purchasing a limited form of property damage liability coverage. This will protect them from having to pay the mini-tort costs in the event that they’re sued.

For more information on Michigan’s motor vehicle laws, regulations, as well as car insurance rates, please visit our page AutoinsuranceEZ in Michigan.