The possibility of a car crash exists anytime people travel in motor vehicles. The state helps limit the risk of severe injury, death and financial hardship by restricting driving privileges. Requirements for licensing help ensure that drivers understand basic traffic statutes and lose their privileges if they break the law too many times.
Rules mandating insurance help reduce the financial harm caused by motor vehicle collisions. In theory, those involved in crashes in Michigan can file an insurance claim seeking compensation for their losses. There could be a combination of no-fault medical coverage and liability coverage available after a collision.
Unfortunately, drivers may end up injured in wrecks where the party at fault does not have proper insurance. Such situations can leave those who didn’t cause the crash scrambling for financial support after a wreck. How likely are Michigan drivers to end up involved in collisions caused by people without mandatory insurance coverage?
Michigan has high rates of uninsured drivers
Historically, Michigan has had some of the most aggressive insurance rules in the country. Long-term mandatory unlimited no-fault insurance requirements have pushed Michigan car insurance premiums above what drivers pay in many other states.
As such, the rate of uninsured drivers is relatively high in Michigan. Recent no-fault reform attempts have not necessarily corrected that issue. According to insurance industry data from 2022, Michigan has one of the highest rates of uninsured drivers in the country. Roughly 19.6% or just under one in five drivers lack proper coverage. Drivers in Michigan are therefore very vulnerable to collisions caused by uninsured motorists.
What happens after an uninsured crash?
The good news for Michigan drivers is that state insurance rules can help protect them from uninsured drivers. No-fault coverage can help protect those involved in collisions caused by uninsured drivers.
However, under no-fault reform rules, many drivers forego or limit their no-fault coverage. They may not have enough personal injury protection (PIP) coverage to cover all of their medical expenses and lost wages. Those involved in crashes caused by uninsured drivers may need help seeking compensation from the driver at fault or a third party.
Discussing the circumstances of a recent car wreck with a skilled legal team can help people determine what options they have when pursuing compensation. Insurance and personal injury litigation are both likely options for those with uncovered car crash expenses.