This Happens More Often Than You Think
You are sitting at a red light. Someone rear-ends you at 40 mph. You are in pain, your car is destroyed, and you exchange information. Then you find out the driver who hit you has no insurance. In Michigan, estimates suggest 20 to 25% of drivers are uninsured, and in Detroit, the rate may be even higher. When the at-fault driver has no insurance, your recovery options depend almost entirely on decisions you made about your own policy before the accident ever happened.
Your PIP Benefits Still Apply
Under Michigan's no-fault system, your PIP (Personal Injury Protection) benefits come from your own insurance policy regardless of who caused the accident. This covers your medical expenses (up to your elected coverage level) and up to 85% of your lost wages. The at-fault driver's insurance status does not affect your PIP benefits. If you do not have auto insurance, PIP benefits follow the priority rules under MCL § 500.3114 — a resident relative's policy, the at-fault driver's policy (which does not exist if they are uninsured), or the Michigan Assigned Claims Plan.
Uninsured Motorist Coverage: The Protection Most People Overlook
Uninsured/underinsured motorist (UM/UIM) coverage is the single most important optional coverage on your Michigan auto policy. If you purchased UM/UIM coverage, it steps in when the at-fault driver has no insurance (or insufficient insurance) to pay for your pain and suffering, lost quality of life, and other non-economic damages. UM/UIM coverage essentially substitutes for the liability insurance the other driver should have had. Policy limits commonly range from $100,000 to $500,000 or more.
If you did not purchase UM/UIM coverage, your options for recovering pain and suffering damages are limited to suing the uninsured driver personally. A driver who cannot afford insurance typically does not have significant assets to collect against, which makes these lawsuits difficult to collect even if you win.
The Mini-Tort for Property Damage
Michigan's mini-tort provision under MCL § 500.3135(3)(e) allows you to recover up to $3,000 in vehicle damage from the at-fault driver — but only if they have insurance. If the at-fault driver is uninsured, the mini-tort does not help with vehicle damage. Your collision coverage (if you have it) covers your vehicle repair or replacement, minus your deductible. Without collision coverage, you bear the full cost of your vehicle damage.
Protect Yourself Before the Accident Happens
The harsh reality is that your protection against uninsured drivers must be in place before the crash. After the accident, there is nothing anyone can do to retroactively add UM/UIM coverage. Koussan Law strongly recommends every Michigan driver carry the highest UM/UIM limits they can afford. The cost is relatively modest compared to the catastrophic exposure of being hit by someone with nothing.
If you were hit by an uninsured driver in Michigan, call Koussan Law at (313) 800-0000. We will identify every available source of recovery and maximize what you can collect.
