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Michigan law requires every motor vehicle owner to have No-Fault insurance. There are stiff penalties for driving a car without insurance. Nonetheless, an estimated 20% of Michigan drivers do not have insurance. In addition, as of July 1, 2020, motorists had the option to choose lower amounts of Personal Injury Protection (PIP) medical coverage instead of the previously mandated unlimited lifetime PIP benefits.
Either situation can result in astronomical expenses in the event of a serious accident. Here is how drivers can protect themselves if they are involved in a car accident in Detroit with an uninsured driver.
WHAT HAPPENS IF YOU HAVE AN ACCIDENT IN DETROIT WHILE DRIVING AN UNINSURED VEHICLE
Here are some of the consequences you could face if you’re involved in an accident while driving an uninsured car:
- If someone else is injured in the accident, you might be sued and held personally liable
- If you are hurt, you are not eligible for any of the Personal Injury Protection (PIP) benefits provided by No-Fault insurance, including medical expenses, lost wages and replacement services
- You are also unable to recover non-economic damages such as pain and suffering from the driver who caused the accident
- If you die as a result of the accident, your family will not receive the survivor benefits included in a typical No-Fault policy
- Even if no one is hurt, you could be subject to a $500 fine and/or a year in jail for driving an uninsured car or allowing someone else to drive it
Recommended reading: How Much Car Insurance Do I Need Under The New Michigan No-Fault Law?
WHY YOU NEED UNINSURED MOTORIST (UM) INSURANCE IN DETROIT
Typically, your own No-Fault policy will pay your medical bills and related costs if you have an accident with an uninsured driver. However, you cannot recover damages for pain and suffering or any excess economic losses not covered by No-Fault from an uninsured driver. This also means you cannot sue the at-fault driver for medical bills that are greater than the limits of your PIP medical coverage.
Fortunately, you can protect yourself and the people in your household by purchasing an “Uninsured Motorist” insurance policy. This insurance, which is generally cost-effective relative to the coverage it provides, protects those who are seriously injured in an accident caused by a driver without insurance.
Here are some of the damages covered by uninsured motorist insurance:
- Non-economic damages, such as pain and suffering or mental distress. A spouse, partner, or, in some cases, a child may also be able to claim loss of consortium, including companionship and emotional support.
- Economic damages, such as outstanding medical costs, lost wages and replacement services that exceed No-Fault policy maximums.
Recommended reading: Under-Insured Or Not Insured? Finding The Right Insurance For You
THE IMPORTANCE OF UNDERINSURED MOTORIST (UIM) COVERAGE
Prior to July 1, 2020, all Michigan No-Fault policies include unlimited lifetime coverage of accident-related medical expenses. As a result of sweeping auto insurance reforms, policy holders were given the option to keep their unlimited Personal Injury Protection (PIP) medical benefits or choose a plan with lower PIP coverage limits.
At the same time, the mandatory minimum for bodily injury liability coverage was raised to $50,000 per person and $100,000 per accident. However, when someone is seriously hurt, the medical bills and ongoing treatment costs can be many times greater than this amount.
This is where underinsured motorist coverage comes in. If you are severely injured in a crash, this insurance will cover accident-related expenses that exceed the other driver’s policy limits, providing you were not at fault.
In addition, this insurance will cover medical expenses that exceed the limits of the victim’s PIP medical benefits.
However, underinsured motorist coverage is only available when another driver causes the accident. If you are responsible for a crash where someone else is hurt, the injured party can sue you for damages that surpass their No-Fault policy limits. To avoid a potentially ruinous situation, it is wise for Detroit drivers to purchase as much bodily injury liability insurance as possible.
DO I NEED A DETROIT AUTO ACCIDENT LAWYER IF I’M INJURED BY AN UNINSURED DRIVER?
Yes. Claiming benefits under uninsured or underinsured motorist policies is a complicated process. There are several conditions that must be met, in addition to filing deadlines that differ from other accident claims. Additionally, studies show victims who hire auto accident attorneys have more successful outcomes than those who try to seek compensation on their own.
PUT OUR EXPERIENCED DETROIT CAR ACCIDENT LAWYERS TO WORK FOR YOU TODAY
If you or a loved one was injured in an auto accident, we can help. Our knowledgeable legal team knows what it takes to win the compensation you and your family deserve.
Car accident law is complicated, but finding the right Detroit car accident lawyer is simple.
Get your case started today by clicking on the link below or calling 1-800-CALL-SAM for a free, no-obligation remote consultation from the safety of your home.
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