In Michigan, can the not at fault driver sue the at fault driver instead of filing a claim with their insurance company?

If you are talking collision damage, see the answer I just filed in relation to a similar question. It is the car insurer of each party that pays collision repairs on each insured vehicle. In other words, you each fix your own cars. The mini-tort claim is available against the opposite insurer if there is a deductible that is incurred.

Under Micihigan law, an auto accident triggers 2 separate claims, other than the claim for reimbursement of your colission deductible: 1) the claim for "economic losses" which include lost wages, medical expenses, medical mileage, household replacement services, attendant care, and 2) the claim for "non-economic losses," which include pain and suffering. Regardless of fault, each injured party claims against their own auto insurance, or that of a resident relative, for the economic losses. So, you go to your own insurance, and the other driver goes to his/her own. If you have no insurance, then you cannot sue, regardless of who is at fault. The claim for non-economic losses requires you to prove that the other person was at fault, AND that your injuries are a serious impairment of body function, a serious permanent disfigurement, or death. Do yourself a favor; consult with a lawyer.

You have to file the claim with the insurer now or you will be personally responsible for any judgment. The policy requires you to notify them so they can defend the case properly.

The driver can sue but only to the limit of the Mini tort threshold. If the car was parked and not moving there is no limit. Small Claims limits the amount of the recovery. I would turn this into the insurance company and save yourself a day in Court.

The most a driver can be held responsible for is $500 under the mini tort provisions of the Michigan No Fault Act. If he sues, turn it over to your insurance company.