Michigan requires every car owner to maintain No-Fault auto insurance that covers his or her injuries in the event of an accident. But there are still thousands of drivers on Michigan roads without that insurance. If you get into an auto accident with one of these drivers, or if you are the victim of a hit and run accident, you could be cut off from your third-party damage compensation. Our uninsured accident lawyers know what a difficult time this is, but you may still have options.
What’s the Difference Between Uninsured and Underinsured?
Uninsured means that a driver carries no insurance whatsoever. Drivers may have let coverage lapse on accident or on purpose, they may be unable to afford coverage, or they are uninterested in following the law, among other reasons. Regardless of the why, we know that uninsured drivers put themselves and others at risk on the road.
Uninsured drivers have insurance, but it may not be enough to cover damages. This also puts accident victims in difficult situations, as they may have even more bills and losses after the collision.
Uninsured (UM) and underinsured (UIM) coverages are not required by Michigan state law, but this policy can help make up for another driver’s failure to have adequate coverage. This optional insurance policy supplements your no-fault auto insurance.
What Underinsured Motorist Insurance Covers
Your No-Fault insurance will cover all of your medical expenses and some of your wage loss and attendant care expenses, no matter who caused the accident. But the cost of a serious injury accident can be far greater than what is covered under your no-fault benefits. These additional costs could include:
- Disability & disfigurement
- Long-term wage loss
- Pain & suffering
Ordinarily, these expenses would be covered by a lawsuit against the at-fault driver and his or her insurance company. But if you are hit by a driver without adequate insurance, or if you can’t find the person that hit you, you’ll need another source for those expenses.
That’s where UM/UIM insurance comes in. It fills the gap left by the uninsured motorist and pays for those third-party damages you need. Basically, it acts as the uninsured motorist’s insurance and pays you for those damages.
Do Uninsured Drivers Face Any Repercussions?
Just because you get the benefit of your under-insured motorist insurance doesn’t mean the at-fault driver isn’t responsible too. But the reality is that even after you get a judgment against the driver, you still probably won’t be able to actually get paid. If the driver isn’t insured, it’s likely they do not have funds to go after. If there is no money to be collected, then you could be out of luck.
But that doesn’t mean the at-fault driver gets off easy. The Michigan No-Fault Act says that when a motorist breaks the law and drives without insurance, he or she can’t receive any No-Fault benefits. So even though at fault drivers may not be paying for your third-party damages, they will be on the hook for all of their own medical expenses.
An underinsured motorist insurance policy covers you in case you are hit by someone without the insurance to pay for your third-party injuries. It can make sure that even when you don’t know who to sue because of a hit & run accident, your injuries will be covered.
What Kind of Auto Coverage Should Drivers Have in Michigan?
Michigan car owners should have an auto policy that meets state requirements, and they are as follows:
Personal Injury Protection
PIP coverage allows drivers to see compensation after an accident regardless of fault. Changes to auto insurance laws in 2020 created multiple PIP options for drivers as a way to make PIP affordable to all. This policy change created six options to choose from:
- Unlimited coverage
- Coverage up to $500,000
- Coverage up to $250,000
- Coverage up to $250,000 with exclusions for some insured members who have a health insurance policy to cover their car accident injuries
- Coverage up to $50,000 for insured members on Medicaid and other members of the household who have a sufficient auto or health policy
- No coverage, if the insured opts out of PIP because they have Medicare and their other household members have auto or health insurance that will pay for injuries in an accident.
Some policies may be sufficient to pay for the covered losses, others may face bills higher than their policy. Normally, drivers would pursue damages from the at-fault driver in this scenario. This becomes difficult, however, when the at-fault party also has an insufficient policy.
Property Protection Insurance
PPI is also mandatory, and it pays for someone else’s property damage in a car accident. It can cover up to $1 million in damages.
Residual Liability Insurance for Bodily Injury and Property Damage
This coverage helps pay for accidents involving injury and death, and property damage if you get into an accident in another state. This policy helps drivers who are considered at-fault for an auto accident.
Your policy must have the following minimums:
- $20,000 per person who is hurt or killed in an accident
- $40,000 for each accident if several people are hurt or killed
- $10,000 for property damage
Drivers can get higher coverage limits, but this is all that’s required by state law.
Victims Without PIP May Seek Damages After a Car Accident
As a victim of an uninsured driver, you would typically turn to your PIP to get some relief for medical expenses. But what if you aren’t required to have PIP, or are not covered by a household member’s PIP? Where can you turn if an uninsured or underinsured motorist hurts you?
The Michigan Assigned Claims Plan (MACP) offers PIP benefits to eligible accident victims, including pedestrians, bicyclists, and motorcycle riders.
Our Car Accident Attorneys Can Help You Now
An Detroit auto accident attorney, like those at Christensen Law, can help you file the right claims and prove your damages to make sure your under-insured motorist policy has you covered.
