No Insurance Accident Not My Fault – If you do not have insurance, you cannot sue for a car accident even if you were not at fault for driving the vehicle in Michigan. Even if you are completely innocent and the other driver is 100% at fault, you cannot sue for pain and suffering damages, medical bills, lost wages, or vehicle damage repairs. But you can still be sued for someone else’s medical bills and lost wages.
This is one of the most ridiculous examples of how unfair Michigan’s no-fault auto laws are. It shows how much the law favors powerful auto insurance companies. Michigan has the harshest and most punitive measures against uninsured motorists. While I agree that everyone should drive with insurance, does granting immunity to drunk drivers and others who kill or seriously injure innocent people really serve our public policy? This is an example of disproportionality and the power of the insurance industry lobby to push this law through the Michigan Legislature.
No Insurance Accident Not My Fault
Things actually get worse for uninsured motorists in Michigan who are not at fault. In addition to being prohibited from prosecuting at-fault, negligent drivers, uninsured drivers face civil fines, possible jail time, and license revocation.
At Fault Or Not At Fault Claim
Allow the insurance industry to rewrite the Insurance Code to provide tort immunity for negligent and drunk drivers who kill, maim, or seriously injure someone who happens to be driving without insurance, beyond any other state penalty available today Nationwide. It only helps car insurance companies and their bottom line. It very intentionally targets poor cities like Detroit, which have large numbers of uninsured and high poverty rates. It does protect the insurance industry, but at the cost of denying people their right to a jury trial and their right to a constitutional remedy for wrongs committed by others.
Michigan law does not allow uninsured and innocent injured car accident victims operating their own vehicles to sue the driver who caused the crash for pain and damages because they did not have the proper insurance required by the state. No-fault law. (MCL 500.3135(2)(c))
If you are in a car accident without insurance, are not at fault, and injure someone, you cannot sue for payment of medical bills related to the car accident and/or for reimbursement of lost wages that prevent you from returning to work due to your injuries.
Typically, victims are entitled to no-fault personal coverage, or PIP benefits, to cover medical expenses (up to the no-fault PIP medical benefit coverage selected in the policy under which the benefits are sought) and lost wages.
Who’s Insurance Pays For Car Accident Property Damage?
However, if you are in a car accident without insurance and at no fault, and the accident results in injuries to others involved, you will lose your eligibility for no-fault benefits. (MCL 500.3113(b))
This means that, unless health insurance or Medicare or Medicaid provides coverage, uninsured motorists will have to pay out of pocket for medical bills and lost wages.
Typically, car accident victims can sue the at-fault driver under Michigan’s small torts for up to $3,000 in repairs for vehicle damage. However, if you are involved in a car accident without insurance and without fault, you will be disqualified from filing a small tort claim. (MCL 500.3135(4)(e))
However, if the car accident was not caused by an uninsured driver, it means you can still be sued for other people’s medical bills and lost wages.
What Should I Do If I Caused An Accident & Don’t Have Insurance?
If you are in a car accident without insurance and are 100% not at fault, you can be sued to have your car insurance company pay no-fault damages to cover the medical bills and lost wages of others, including the driver who caused the collision.
In fact, no-fault law allows a car insurance company to sue you not only for “all damages paid,” but also for “loss adjustment costs and expenses incurred and attorney’s fees incurred.” (MCL 500.3177(1))
This is where Michigan law truly prioritizes insult over injury. It also reveals how much gratitude lawmakers truly have for the insurance industry.
Anyone who resides in Michigan or regularly drives in Michigan must maintain a valid auto no-fault insurance policy for his or her motor vehicle, which policy is issued by an auto insurance company authorized to do business in Michigan and provides for “payment Personal Protection Coverage Benefits (also known as PIP benefits), Property Protection Insurance, and Residual Liability Insurance (also known as Bodily Injury Liability Insurance). (MCL 500.3101(1), (2) and (4); 500.3108(1))
Should I Get A Lawyer For A Car Accident
If you are in a car accident without insurance and at fault, the situation will only get worse. You may face any or all of the following consequences:
Because you were in a car accident without insurance, being at fault means that you did not have insurance to cover any liability for the above damages and compensation, which means you may need to use your own personal assets (for example) out-of-pocket savings, checks, Retirement, children’s college accounts, home, vehicle, RV and future income. The financial stress caused by your responsibilities may force you into bankruptcy.
To learn more, check out my blog post “9 Risks of Driving Uninsured in Michigan.”
The best thing Michigan drivers can do to protect themselves and their families if they are involved in a car accident — whether they caused the crash or someone else did — is to make sure they have the valid no-fault coverage their vehicle requires.
What Happens If You Have No Insurance But The Other Driver Was At Fault?
If you have been injured in a car accident and would like to speak with an experienced attorney, please feel free to call toll-free 24/7: (248) 353-7575 for a free consultation with one of our attorneys. You can also get help from experienced accident attorneys by visiting our contact page or using the chat function on our website.
Steven Gursten was named Michigan Lawyer of the Year by Super Lawyers and is consistently ranked among the top 50 attorneys in Michigan (out of more than 65,000 attorneys). He is the current chair of the AAJ’s Distracted Driving Litigation Group, a past president of the Belli Society, a past chair of the AAJ’s Truck Litigation Group and TBI Group, and a past president of the Association of Motor Vehicle Trial Lawyers.
Steve has been named a JD Supra Readers’ Choice Award Winner – Best Author in the Insurance Category every year since 2018. Steve has received the largest auto and truck accident settlement ever awarded to a Michigan attorney or law firm.
“Highest stars for this law firm, especially attorney Mr. Steven Gursten. Very professional and prompt! I also found very useful information about the new car laws. I have recommended him to all my friends and neighbors.” – Mira
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By: Kacie Goff Written by: Kacie GoffArrow Right Personal Finance Writer Kacie Goff is a personal finance and insurance writer with over 7 years of experience in personal and business insurance options. She writes for , The Simple Dollar, NextAdvisor, Varo Money, Coverage, Best Credit Cards and other magazines. She underwrites a wide range of policy types, including lesser-mentioned insurances such as package insurance and E&O, and she specializes in auto insurance, homeowners insurance, and life insurance. Connect with Kacie Goff on LinkedIn Connect with Kacie Goff via email Email Kacie Goff
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Reviewer Steve Ellis, CPCU, AIC, MBA Reviewer Steve Ellis, CPCU, AIC, MBAArrow Right Assistant Vice President and Claims Area Manager Steve Ellis, CPCU, AIC, MBA, is a 30-year veteran of the insurance industry. His experience spans training, operations, quality improvement, auditing, compliance, claims technology and data and analytics. About our Audit Committee Steve Ellis, CPCU, AIC, MBA
Better Safe Than Sorry: A Guide To Buying Car Insurance
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