What to Do When a Car Accident Involves an Uninsured or Underinsured Driver
Car accidents can be distressing enough, but the situation becomes even more complicated when the other driver is uninsured or underinsured. If you've experienced such an accident, you may be wondering how to protect your rights and pursue compensation for your damages.
At Dodd B. Fisher Law, we understand the emotional and physical turmoil you are going through. That’s why our reliable attorneys dedicate their time to helping Michigan residents pursue justice and compensation. Our firm serves clients in Grosse Pointe Woods & Fort Gratiot, as well as surrounding areas. Schedule a free consultation today.
Stay Calm and Collect Information
First and foremost, it’s essential to remain calm and take a step-by-step approach to handle the immediate aftermath of the accident. If possible, take the following actions:
Prioritize safety: Move yourself and passengers to a safer area if the accident scene is dangerous.
Document the scene: Take photos of the vehicles, damages, and any visible injuries.
Exchange contact information: Obtain the name, phone number, and insurance information (if applicable) from the other driver.
Gather witness statements: If bystanders witnessed the accident, ask for their contact information and a brief account of what they saw.
File a police report: Notify the authorities, and make sure a report is submitted. This report can serve as evidence later.
Even though the driver may lack adequate insurance, having a detailed record of the accident is critical for any claims you may pursue.
Notify Your Insurance Company
After the accident, reach out to your own insurance company as soon as possible. Michigan is a no-fault insurance state, meaning you'll typically file a claim with your insurer regardless of who is at fault. However, when the other driver is uninsured or underinsured, you may need to rely on specific types of coverage under your policy, such as:
Uninsured Motorist Coverage (UM): This type of coverage helps pay for your medical bills, lost wages, and other damages if the other driver has no insurance.
Underinsured Motorist Coverage (UIM): If the at-fault driver’s insurance is insufficient to cover your damages, this coverage may help fill the gap.
Collision coverage: This coverage will cover vehicle repair costs regardless of who is at fault.
Review the details of your policy to understand what options are available to you. Your insurance provider can also explain the process for filing these specific types of claims.
Understand Michigan’s No-Fault Insurance System
Michigan’s no-fault insurance system is designed so that individuals receive prompt compensation for medical expenses and other losses after a car accident, regardless of who caused the crash. However, the system has unique rules, and understanding this is key to protecting your rights.
Key Features of Michigan’s No-Fault Insurance:
Personal Injury Protection (PIP): Your PIP benefits cover medical expenses, lost wages, and related costs after an accident, regardless of fault. PIP is mandatory for all drivers and provides immediate access to necessary care without requiring proof of fault.
Liability Coverage: Michigan drivers are required to carry liability insurance to cover expenses if they are found at fault in an accident, such as property damage or injuries to others.
Property Protection Insurance (PPI): This required coverage pays up to $1 million for damage your vehicle causes to other people’s property (such as buildings or parked cars), but it does not cover damage to your own vehicle.
Minimum Auto Insurance Requirements in Michigan:
As of July 2020, Michigan allows drivers to choose from different levels of PIP coverage due to legislative changes aimed at reducing insurance costs. Here’s what’s required:
Personal Injury Protection (PIP): Previously unlimited, now drivers can choose coverage at various levels (e.g., $50,000, $250,000, $500,000, or unlimited). Medicaid enrollees may opt for lower PIP limits.
Residual Liability Insurance: Minimum coverage limits include:
$50,000 for bodily injury or death of one person in an accident
$100,000 for bodily injury or death of two or more people in an accident
$10,000 for property damage in another state
Property Protection Insurance (PPI): Up to $1 million for property damage caused by your vehicle.
When No-Fault Benefits Aren’t Enough:
Michigan’s no-fault system has limitations. If your accident-related costs exceed your PIP coverage or involve serious injuries, certain situations allow you to file a lawsuit for additional compensation:
Excess medical costs: If your medical expenses surpass your policy’s PIP limits, you may be able to seek compensation from the at-fault driver.
Pain and suffering: If the accident caused severe, permanent injuries or death, you may file a third-party claim to seek non-economic damages, such as pain and suffering.
Uninsured drivers: If the at-fault driver is uninsured or underinsured, recovering compensation can become more complex, potentially involving your own uninsured/underinsured motorist (UM/UIM) coverage.
Why Legal Guidance Matters:
Dealing with Michigan’s no-fault insurance system can be overwhelming, particularly when it involves serious injuries or policy disputes. A knowledgeable attorney can:
Help you understand your PIP benefits and policy limits.
Determine whether you are eligible for additional compensation through a lawsuit.
Assist with claims involving uninsured or underinsured drivers.
Advocate for your rights to receive the compensation you deserve.
Michigan’s no-fault insurance system offers valuable protections but can also be complicated, particularly when injuries are severe or costs exceed coverage limits. Consulting with an experienced attorney can help you explore all your options for recovery while complying with state insurance regulations.
Steps to Protect Yourself in the Future
While incidents with uninsured or underinsured drivers are unpredictable, there are steps you can take to protect yourself from severe financial burdens in the future:
Opt for uninsured/underinsured motorist coverage when purchasing or updating your policy.
Consider increasing your policy limits to create a stronger financial safety net.
Stay vigilant while driving—alertness can help you avoid potential accidents caused by negligent drivers.
Take Charge of Your Recovery
Dealing with an uninsured or underinsured driver may feel overwhelming, but you’re not alone. If you’ve been in a car accident in Michigan, contact Dodd B. Fisher Law for guidance. Our knowledgeable legal team is here to support you in Grosse Pointe Woods, Fort Gratiot, and the surrounding areas. Schedule a free consultation today to learn about your options and how we can help you recover the compensation you deserve.
