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Understanding the Differences Between At-Fault Auto Insurance Versus No-Fault Auto Insurance

Aug 3

The knowledgeable and experienced Southfield, MI auto accident attorneys at Wigod & Falzon realize that most Michigan drivers don’t understand the differences between at-fault and no-fault insurance.  Our prestigious law firm Southfield has been practicing auto accident law since 1997, and we understand how the no-fault Michigan laws work.

Main Differences

Our auto accident attorneys in Southfield will explain that the first difference between the two types of insurance is the one that most people are aware of – who pays for the injured person's damages.  The second difference is whether or not the injured victim has the right to sue.  


The original intent of no-fault auto insurance was to make it cheaper because minor accidents would be taken out of the court system. Car insurance companies would not have to pay Southfield Injury Attorneys to settle smaller cases in court. Each driver's own insurance company would be responsible for damages. No driver has to be assigned fault to get your damages covered up to your policy limit.

The Right to Sue

But the policy limit does make a difference. No-fault insurance does let injured victims sue the at-fault driver in certain situations.  Southfield No Fault Insurance Lawyers only deal with economic damages.  But in Michigan, the victim is allowed to sue for non-economic damages.

Residual Liability

Even though one of the points of no-fault insurance was to protect people from being sued in an accident, sometimes the person who got hurt did not carry enough insurance to pay for their injuries. This is where policy limits come into play. The car accident lawyers in Michigan at the law firm of Wigod & Falcon will explain residual liability to you at your initial consultation.

In this case, each driver pays for their damages, but the extra expenses are left over – residual liabilities.  If you are found to be at fault, there are times when you can be sued.

The Southfield insurance attorneys at Wigod & Falzon explain that many situations allow you to be sued even in the no-fault state of Michigan.

For example, if you caused someone's death, permanent disfigurement, or other serious injuries, you can be sued for residual liability.  Also, you can be sued if the other driver doesn’t live in Michigan.  In the same way, if you cause an accident in another state, you can be sued.  

Wigod & Falzon, P.C.
25899 W 12 Mile Rd #200, Southfield, MI 48034
(248) 356-3300