Car insurance is legally required for all drivers in Michigan. Despite this fact, there are still many drivers operating their vehicles without even the minimum amount of liability coverage. According to the Insurance Research Council, around one out of every eight drivers is uninsured.
What happens if you are in a car accident with no insurance?
If you are involved in a car accident while you had no insurance, you are not automatically at fault for the accident. However, you could face penalties for driving without insurance.
Since Michigan has no-fault insurance laws, every driver is expected to file a claim with their own insurance provider regardless of who was at fault. If you have no insurance, though, you wouldn’t be able to claim compensation in the usual way.
What if the other driver has no insurance?
If you have insurance but the other driver doesn’t, you can still file a claim for compensation with your own no-fault insurance coverage. In some cases, you may be able to sue the other driver for additional compensation if they were at fault for the accident. Car accidents that involve two drivers who both have no insurance may be more complicated.
What happens if insurance is not covering your expenses?
There are some situations where Michigan’s no-fault insurance coverage does not cover all of your expenses after a car accident. In these cases, you may file a lawsuit against the other driver as long as they were the at-fault party. You may also file a lawsuit against your own provider if the insurance company is failing to compensate you.