The Impact of Uninsured Drivers in Michigan

by Lithium Technologies ‎07-27-2015 05:18 PM - edited ‎08-04-2015 11:33 AM (1,533 Views)

The cost of auto insurance in Michigan is so high that many choose to go without it entirely. In fact, more than 1 in 5 Michigan drivers don’t have insurance. Michigan premiums are higher—and rising faster—than rates in the surrounding states and most areas of the country. The result is a staggering number of uninsured drivers on the road.

 

So what happens if you find yourself in an accident with an uninsured driver? Who pays for your medical treatment and damages to your car? And what happens to the driver without coverage?

 

How am I covered?

Rest assured that if you’re in an accident with an uninsured driver, the benefits you receive will be exactly what you paid for in your policy. Your existing insurance benefits do not change just because the other driver was uninsured—coverage will be based on your policy at the time of the accident.

 

How is an uninsured driver covered?

The owner of an uninsured vehicle cannot collect no-fault benefits, cannot sue for pain and suffering and has no protection if they are hit while driving their uninsured car. However, they can still be entitled to no-fault benefits if they are in another person’s car, even though they did not pay into the no-fault system.

 

Can insured drivers sue an uninsured driver after an accident?

In some cases, yes. Michigan drivers may sue if someone was killed or seriously injured.

 

What if I win a judgment from an uninsured, at fault driver?

If you were awarded a settlement from an uninsured, at-fault driver, your Uninsured Motorist coverage would apply if this optional coverage was on your policy at the time of the accident.

 

How does the growing number of uninsured drivers impact me?

Over 1 million uninsured motorists in Michigan drive without insurance. As this number grows, Uninsured Motorist coverage will be used more often. Plus, fewer drivers will contribute to the collective funding of unlimited lifetime medical benefits. The effect will be higher premiums for insured drivers.

 

As always, you can count on AAA to continue working toward a more efficient insurance system, fight fraud and be an advocate for our members and policyholders.

 

Learn more about Michigan’s unique insurance system.

 

A version of this story appears in the July/August 2015 issue of AAA Living magazine.

 

Image credit/source: iStock

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