Unfortunately, the consequences of driving an uninsured vehicle in Michigan are far greater than almost any other state. This is an issue that comes us frequently nowadays, especially in light of the fact Michigan has some of the highest automobile insurance rates in the country – rates that are not regulated by Michigan state government.
The reality is if you are the owner of an uninsured vehicle, and you are involved in a motor vehicle accident, you cannot get anything. This is true even if you are catastrophically injured by a drunk driver.
First, you cannot make a Michigan no-fault PIP claim. This means you cannot obtain lost wages or have your medical bills paid by an auto insurance company. You simply cannot collect any Michigan no-fault benefits.
Believe it or not, you also cannot sue the other driver for pain and suffering compensation. Again, it doesn’t matter if the other driver was 100% at fault and you sustained horrible injuries. If you are driving your own vehicle without insurance, and you are involved in a car accident, you cannot obtain pain and suffering compensation.
On the other hand, you can be sued by the other driver for everything that driver’s insurance company pays on that person’s claim. For example, if the other driver involved in the accident is seriously injured in a car accident, and again you were uninsured at the time, the other driver’s insurance company can attempt to collect from you the entire amount it has paid in benefits to the other driver. So if that insurance company paid $100,000 in hospital bills due to car accident injuries, you can be sued in court for $100,000 or more by the insurance company as repayment.
Last, you also cannot collect your mini-tort ($1,000) damages from the at-fault driver, and instead, you can be sued for the vehicle damage to the other motorist.
It is extremely important you maintain automobile insurance on any vehicle that hits the road here in Michigan. The consequence for not doing so can be huge.