Michigan has one of the highest rates of uninsured drivers in the country. According to the Insurance Research Council, approximately 25% of Michigan motorists drive without insurance. If you are hit by an uninsured driver, you may feel like you have no recourse—but Michigan’s no-fault system and other coverage options provide multiple paths to compensation.
Understanding how these options work is critical because the steps you take immediately after the accident—and the insurance coverages you already carry—will largely determine how much you can recover.
Your No-Fault Benefits Still Apply
Michigan’s no-fault insurance system is designed to ensure that accident victims receive medical care and wage loss benefits regardless of who caused the crash—or whether the at-fault driver carries insurance. Under MCL 500.3105, your own auto insurance policy provides Personal Injury Protection (PIP) benefits including:
- Medical expenses: Coverage for all reasonable and necessary medical treatment related to the accident, up to your policy’s PIP limit.
- Wage loss benefits: Up to 85% of your gross income for up to three years if you cannot work due to your injuries.
- Replacement services: Up to $20 per day for household services you can no longer perform because of your injuries.
- Attendant care: Compensation for family members or professionals who provide nursing-type care.
These benefits come from your own insurer, not the at-fault driver’s policy. The other driver’s insurance status is irrelevant to your PIP claim.
Uninsured Motorist (UM) Coverage in Michigan
Uninsured motorist coverage is an optional add-on to your Michigan auto insurance policy. If you carry UM coverage, it steps in to compensate you for injuries caused by an uninsured driver—specifically for damages that go beyond what no-fault covers, such as pain and suffering.
Here is how UM coverage works in practice:
- It acts as a substitute for the at-fault driver’s liability insurance. If the uninsured driver would have been liable for your pain and suffering, your UM policy pays instead.
- You must still meet Michigan’s serious injury threshold. To claim non-economic damages (pain and suffering), you need to demonstrate a “serious impairment of body function” or “permanent serious disfigurement” under MCL 500.3135.
- Coverage limits vary. The amount you can recover depends on the UM limits you selected when purchasing your policy. Common limits range from $50,000 to $500,000 or more per person.
If you do not currently carry UM coverage, consider adding it immediately. Given Michigan’s high rate of uninsured drivers, this is one of the most valuable coverages available.
Underinsured Motorist (UIM) Coverage
Closely related to UM coverage, underinsured motorist coverage applies when the at-fault driver has insurance but with limits too low to cover your damages. For example, if the at-fault driver has $50,000 in liability coverage but your damages exceed $200,000, UIM coverage can bridge the gap up to your policy limits.
Michigan law does not require drivers to carry UM or UIM coverage, but both are strongly recommended given the state’s insurance landscape.
Filing a Lawsuit Against the Uninsured Driver
You retain the legal right to sue an uninsured driver directly for your damages. If your injuries meet Michigan’s serious injury threshold, you can file a tort lawsuit seeking compensation for:
- Pain and suffering
- Emotional distress
- Loss of quality of life
- Excess economic damages beyond no-fault benefits
The practical challenge is collectability. Many uninsured drivers lack insurance precisely because they have limited financial resources. Even with a court judgment in your favor, collecting on that judgment can be difficult. An attorney can evaluate the at-fault driver’s assets and help you determine whether pursuing a lawsuit is worthwhile.
What If You Do Not Have Auto Insurance
If you were driving without insurance at the time of the accident, your options are significantly more limited. Under Michigan’s no-fault law (MCL 500.3113), an uninsured driver is generally disqualified from receiving PIP benefits. However, there are exceptions:
- Passengers: If you were a passenger in the vehicle, you may still qualify for PIP benefits through the driver’s policy, the vehicle owner’s policy, or the Michigan Assigned Claims Plan.
- Pedestrians and cyclists: If you were a pedestrian or bicyclist hit by a car, you can claim PIP benefits through a priority system set out in MCL 500.3114 and 500.3115, even if you do not have your own auto insurance.
- Tort claims: You may still file a lawsuit against the at-fault driver for pain and suffering if your injuries meet the serious impairment threshold, even without your own insurance.
The Michigan Assigned Claims Plan
The Michigan Assigned Claims Plan (MACP) exists as a safety net for accident victims who have no other source of no-fault insurance benefits. If you were injured in a motor vehicle accident and do not qualify for PIP benefits through any auto insurance policy, the MACP assigns your claim to an insurer who will provide benefits.
Eligibility for the MACP requires that you were not the owner or registrant of an uninsured vehicle involved in the accident. The application process has strict deadlines, so prompt action is essential.
Steps to Take After an Accident with an Uninsured Driver
- Call the police. A police report documenting the accident and the other driver’s lack of insurance is critical evidence.
- Document everything. Photograph the scene, damage, and injuries. Collect the other driver’s name, address, phone number, and vehicle information.
- Seek medical attention. Get examined promptly, even if you feel fine. Some injuries take hours or days to manifest.
- Notify your insurance company. Report the accident to your own insurer immediately. File your PIP claim and, if applicable, your UM/UIM claim.
- Do not accept blame. Avoid making any statements about fault at the scene or to any insurance company without consulting an attorney first.
- Contact a car accident attorney. An experienced lawyer can evaluate all available coverage options and pursue maximum compensation on your behalf.
Frequently Asked Questions
Does Michigan require uninsured motorist coverage?
No. Michigan does not require drivers to purchase uninsured motorist (UM) or underinsured motorist (UIM) coverage. These are optional add-ons to your auto insurance policy. However, given that roughly one in four Michigan drivers is uninsured, UM/UIM coverage is strongly recommended.
Can I sue an uninsured driver in Michigan?
Yes. You can file a lawsuit against an uninsured driver for pain and suffering and other damages if your injuries meet Michigan’s serious impairment threshold under MCL 500.3135. The challenge is collecting on any judgment, as uninsured drivers often have limited assets.
Will my insurance rates go up if I file a claim after being hit by an uninsured driver?
Filing a no-fault PIP claim after an accident that was not your fault generally should not increase your premiums. Michigan law prohibits insurers from raising rates based solely on a no-fault claim where you were not at fault. However, each insurer has its own underwriting practices, so results may vary.
What if the uninsured driver was driving a borrowed car?
In Michigan, auto insurance follows the vehicle first, then the driver. If the vehicle’s owner had insurance, the owner’s policy may provide liability coverage for the accident. If the vehicle was also uninsured, your own UM coverage or the MACP may be your best options.
How long do I have to file a claim after an accident with an uninsured driver?
For no-fault PIP benefits, you must notify your insurer within one year of the accident. For a tort lawsuit for pain and suffering, Michigan’s statute of limitations is generally three years from the date of the accident under MCL 600.5805. For MACP claims, you must apply within one year. Missing these deadlines can permanently bar your claim.
Hit by an Uninsured Driver? We Can Help.
Being struck by an uninsured motorist does not mean you are left without options. The Joseph Dedvukaj Firm, P.C. has extensive experience recovering compensation for accident victims even when the at-fault driver has no insurance. We will identify every available source of coverage, handle the insurance claims, and fight to get you the compensation you deserve. Call 1-866-HIRE-JOE or visit 1866hirejoe.com for a free consultation.