Michigan No-Fault Law, section by section › MCL 500.3177
Recovery by insurer of benefits and costs from owner or registrant of uninsured motor vehicle; written agreement to pay judgment in installments; notice.
In plain terms
The insurer that pays PIP for an injury arising from an uninsured motor vehicle may recover everything it paid, plus adjustment costs and attorney fees, from the uninsured owner or registrant. Failure to pay a judgment within 30 days is grounds for suspending the owner's license and registration, although the MAIPF may agree to installment payments.
How this section works in practice
When an insurer or the assigned claims plan pays PIP benefits for an injury caused by an uninsured motor vehicle, this section lets it recover everything it paid, plus its adjustment costs and attorney fees, from the uninsured vehicle's owner or registrant, or from that person's estate. An uninsured vehicle is one that lacked the security required by sections 3101(1) and 3102 at the time of the accident.
The enforcement tool is the driver's license and registration. If the owner does not pay a judgment within 30 days after entry, the Secretary of State may suspend both, and reinstatement fees are the owner's responsibility. The Michigan Automobile Insurance Placement Facility may instead accept a written installment agreement, which keeps the license active as long as payments are current. For a family that let coverage lapse to save a few hundred dollars, this section is the reason a single accident can produce a five- or six-figure debt: the benefits paid to every injured person in the other car can be charged back to the uninsured owner.
Text of MCL 500.3177
Sec. 3177.
(1) The insurer obligated to pay personal protection insurance benefits for accidental bodily injury to a person arising out of the ownership, maintenance, or use of an uninsured motor vehicle as a motor vehicle may recover all benefits paid, incurred loss adjustment costs and expenses, and incurred attorney fees from the owner or registrant of the uninsured motor vehicle or from his or her estate. Failure of the owner or registrant to make payment within 30 days after a judgment is entered in an action for recovery under this subsection is a ground for suspension or revocation of his or her motor vehicle registration and license as defined in section 25 of the Michigan vehicle code, 1949 PA 300, MCL 257.25. For purposes of this section, an uninsured motor vehicle is a motor vehicle with respect to which security as required by sections 3101(1) and 3102 is not in effect at the time of the accident.
(2) The Michigan automobile insurance placement facility may make a written agreement with the owner or registrant of an uninsured vehicle or his or her estate permitting the payment of a judgment described in subsection (1) in installments payable to the Michigan automobile insurance placement facility. The motor vehicle registration and license of an owner or registrant who makes a written agreement under this subsection must not be suspended or revoked and, if already suspended or revoked under subsection (1), must be restored if the payment of any installments is not in default.
(3) The secretary of state, on receipt of a certified abstract of court record of a judgment described in subsection (1) or notice from an insurer or the Michigan automobile insurance placement facility or its designee of an acknowledgment of a debt described in subsection (1), shall notify the owner or registrant of the provisions of subsection (1) at the owner or registrant's last address recorded with the secretary of state and inform the owner or registrant of the right to enter into a written agreement under this section with the Michigan automobile insurance placement facility or its designee for the payment of the judgment or debt in installments.
(4) Expenses for the suspension, revocation, or reinstatement of a motor vehicle registration or license under this section are the responsibility of the owner or registrant or of his or her estate. An owner or registrant whose registration or license is suspended under this section shall pay any reinstatement fee as required under section 320e of the Michigan vehicle code, 1949 PA 300, MCL 257.320e.
History: Add. 1972, Act 294, Eff. Mar. 30, 1973 ;-- Am. 1984, Act 426, Eff. Mar. 29, 1985 ;-- Am. 2019, Act 21, Imd. Eff. June 11, 2019
Source: MCL 500.3177 at legislature.mi.gov (official text). Text as published in the 2025 Michigan Compiled Laws; reviewed by Koussan Law on September 15, 2026.
Sections this one refers to
- MCL 500.3101: Who Must Carry No-Fault Insurance
- MCL 500.3102: Nonresidents and Driving Uninsured
Sections that refer to this one
- MCL 500.3175: Assignment, Reimbursement and Recovery
Practice pages
Important: This is not legal advice
This article is general information about Michigan personal injury law. It is not legal advice and should not be relied on as a substitute for consultation with a licensed Michigan attorney about your specific situation. The laws, deadlines, procedures, and frameworks here are general guidelines that may or may not apply to your case.
Every personal injury case turns on its own unique facts. The timing, the parties, the evidence, the jurisdiction, the insurance available, and dozens of other variables can change the legal analysis. Do not rely on anything written on this website to make decisions about your case.
If you have been injured in Michigan, the only responsible step is to speak with a licensed Michigan attorney about your specific facts. Call Koussan Law at (313) 800-0000 for a free consultation, or contact a different Michigan personal injury attorney of your choosing.
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