What Is the Statute of Limitations in a Car Accident Claim?

The statute of limitations for filing a car accident claim in Michigan is generally three years from the accident date. However, some exceptions can shorten or extend that deadline. Let’s explore the statute of limitations for personal injury claims in Michigan, why these deadlines are important, and why it’s essential to consult a car accident lawyer immediately after an accident. 

What is a Statute of Limitations?

A statute of limitations is a law that sets the maximum time after an event within which legal proceedings may be initiated. In the context of car accidents, it's the time limit within which you must file a lawsuit against the at-fault party. Once this time period expires, you generally lose your right to sue for damages related to the accident.

The Importance of the Statute of Limitations

Understanding the statute of limitations is critical for several reasons:

• Legal Rights Protection: Filing within the statute of limitations preserves your legal right to seek compensation.


• Evidence Preservation: Over time, evidence can disappear, and witnesses' memories can fade. Acting promptly helps ensure that crucial evidence is available to support your case.


• Insurance Negotiations: Knowing the statute of limitations can provide leverage in negotiations with insurance companies, as they know the time constraint on potential lawsuits.


• Peace of Mind: Taking timely action can alleviate stress and uncertainty about your legal options.

The Complexity of Michigan's No-Fault System

Michigan's no-fault insurance system adds a layer of complexity to car accident claims. Under this system, your own insurance company is responsible for covering certain expenses regardless of who was at fault for the accident.

These benefits, known as Personal Injury Protection (PIP) benefits, include:

• Medical expenses


• Lost wages (for up to three years)


• Replacement services (help with household tasks you can't perform due to your injuries)


• Attendant care (in-home nursing services)

The one-year statute of limitations for PIP benefits is separate from the three-year limit for filing a lawsuit against the at-fault driver. This means you could have two different deadlines to keep track of following a car accident.

Why the Three-Year Limit Matters

While the no-fault system covers many of your immediate needs, there are situations where you may need to file a lawsuit against the at-fault driver. These include:

• Serious Injuries: If your injuries meet Michigan's "serious impairment of body function" threshold, you may be able to sue for additional damages.


• Excess Economic Losses: If your economic losses exceed what's covered by your PIP benefits, you may be able to sue for the difference.


• Non-Economic Damages: Pain and suffering, loss of enjoyment of life, and other non-economic damages are not covered by PIP benefits and may be pursued through a lawsuit.


• Vehicle Damage: Claims for vehicle damage are typically pursued against the at-fault driver's insurance company and are subject to the three-year statute of limitations.

Steps to Take After a Car Accident

To protect your rights and ensure you don't miss any critical deadlines, consider taking the following steps after a car accident:

• Seek Medical Attention: Your health should be your top priority. Even if you feel fine, some injuries may not be immediately apparent.


• Report the Accident: File a police report and notify your insurance company as soon as possible.


• Document Everything: Take photos of the accident scene, gather witness information, and keep records of all medical treatments and expenses.


• Consult with an Attorney: An experienced car accident attorney can help you understand your rights and ensure you meet all necessary deadlines.


• Keep Track of Dates: Make note of the date of your accident and be aware of approaching deadlines.

The Risks of Waiting

While the three-year statute of limitations may seem like a generous timeframe, waiting to file your claim can significantly jeopardize your case. Delaying action after a car accident can lead to numerous complications that may weaken your position or even prevent you from receiving the compensation you deserve. It's important to understand that time is not on your side when it comes to personal injury claims. 

Here are some specific risks associated with waiting to file your car accident claim:

• Loss of Evidence: As mentioned earlier, evidence can disappear, and memories can fade over time.


• Insurance Company Tactics: Insurance companies may use delay tactics, hoping you'll miss the deadline.


• Preparation Time: Building a strong case takes time. Starting early gives your attorney more opportunity to gather evidence, consult experts, and prepare your case thoroughly.


• Peace of Mind: Addressing your claim promptly can reduce stress and allow you to focus on your recovery.

When the Clock Starts Ticking

Generally, the statute of limitations begins running on the accident date. However, there are situations where this may not be the case:

• Continuous Treatment: If you're receiving ongoing treatment for your injuries, the statute may not begin until treatment is completed.


• Latent Injuries: As mentioned earlier, the discovery rule may apply if an injury doesn’t immediately appear.


• Hit and Run Accidents: In cases where the at-fault driver can't be immediately identified, the statute may be tolled until the driver is found.

The Role of an Experienced Attorney

Navigating the complexities of car accident claims, especially with Michigan's no-fault system and various statutes of limitations, can be challenging. At Goodman Acker P.C., our attorneys are well-versed in Michigan's car accident laws and have a proven track record of successfully representing clients in various accident scenarios. Here are some key ways an experienced attorney can assist you:

• Ensure Timely Filing: A knowledgeable attorney will know all relevant deadlines and ensure your claim is filed on time.


• Maximize Compensation: By understanding both the no-fault system and tort law, an attorney can help you pursue all available avenues for compensation.


• Handle Insurance Companies: Experienced attorneys know how to negotiate with insurance companies and protect you from tactics designed to minimize your claim.


• Gather and Preserve Evidence: Your attorney can work quickly to collect and preserve crucial evidence to support your claim.


• Advice on Complex Situations: In cases involving multiple parties, government entities, or other complicating factors, an attorney's guidance is invaluable.

Potential Consequences of Missing the Deadline

If you miss the statute of limitations deadline, the consequences can be severe:

• Case Dismissal: If you file a lawsuit after the statute of limitations has expired, the court will likely dismiss your case.


• Loss of Compensation: You may lose your right to seek compensation for your injuries, property damage, and other losses.


• Insurance Claim Denial: Even if you're dealing with your own insurance company, they may deny your claim if it's filed after the statutory deadline.


• Limited Options: Your options for recovering damages become severely limited once the statute of limitations has passed.

Exceptions to the Rule

While rare, there are some situations where the court might allow a case to proceed even if the statute of limitations has expired:

• Legal Disability: If the injured person was under a legal disability (such as mental incapacity) at the time of the accident, the statute might be tolled.


• Absence from the State: If the defendant leaves the state after the accident, the time they're absent will not count toward the statute of limitations.

Keep in mind that these exceptions are rarely applied and should not be relied upon. Always aim to file within the standard statute of limitations.

The Importance of Acting Quickly

While the statute of limitations gives you up to three years to file a lawsuit, act quickly after a car accident. Here's why:

• Fresh Evidence: The sooner you start your claim, the fresher the evidence. This includes physical evidence from the accident scene and witness memories.


• Prompt Medical Treatment: Seeking immediate medical attention benefits your health and creates a clear link between the car accident and your injuries.


• Faster Resolution: Starting the process early can lead to a quicker resolution of your claim, allowing you to move forward with your life.


• Stronger Negotiating Position: A prompt claim shows insurance companies that you're serious about pursuing your rights, which can lead to more favorable settlement offers.

The Impact of Insurance Policy Terms on Filing Deadlines

While the statute of limitations sets the legal deadline for filing a lawsuit, your insurance policy may have its own deadlines that could affect your claim. These policy-specific time limits can be shorter than the legal statute of limitations, making it essential to review your policy carefully after an accident.

Insurance Policy Notification Requirements

Most insurance policies include a provision requiring the policyholder to notify the insurance company of an accident or loss "promptly" or within a specific timeframe. This requirement typically applies to both your own insurance company and the at-fault driver's insurer. While "prompt" notification isn't precisely defined, it's generally interpreted as "as soon as reasonably possible."

Failure to provide timely notice could result in:

• Denial of your claim


• Reduced coverage


• Complications in the claims process

It's always best to notify your insurer as soon as possible after an accident, even if you don't intend to file a claim immediately.

No-Fault Insurance Deadlines

In Michigan's no-fault system, you must file claims for PIP benefits within one year of the accident date. This is separate from the three-year statute of limitations for filing a lawsuit against the at-fault driver.

Discuss Your Case with a Trusted Car Accident Attorney

Understanding the statute of limitations for car accident claims in Michigan is crucial for protecting your rights and ensuring you receive fair compensation for your injuries and losses. While the general rule of three years applies to most situations, the complexities of Michigan's no-fault system and potential exceptions make it wise to consult with an experienced attorney as soon as possible after an accident.

At Goodman Acker P.C., we're committed to helping car accident victims throughout Michigan navigate these complex legal waters. Our experienced personal injury attorneys understand the nuances of Michigan's car accident laws and can ensure that your claim is filed on time and that you pursue all available avenues for compensation.

Remember, time is of the essence in car accident claims. If you've been involved in a car accident, don't wait to seek legal advice. Contact Goodman Acker P.C. today at (248) 831-1507or through our online form for a free consultation. Our dedicated team is ready to fight for your rights and help you get the compensation you deserve.