What Happens If the Person at Fault in an Accident Has No Insurance in Michigan?

Michigan is a "no-fault" state, meaning that each driver must rely on their auto insurance to cover medical expenses and other related damages after a car accident, regardless of who was at fault. This system is established by Michigan Compiled Laws (MCL) §500.3101, which mandates every motor vehicle owner to carry auto insurance that includes personal protection insurance (PIP), property protection insurance (PPI), and residual liability insurance.

However, regardless of the state's no-fault liability system, at-fault drivers who lack insurance are stripped of the state's no-fault protection and become personally liable for certain damages resulting from the accident. For example, an accident victim may file a third-party claim for non-economic damages against an at-fault driver under MCL § 500.3135 if their injuries meet the statutory threshold of a "severe impairment of body function" or "permanent serious disfigurement". Also, driving without insurance is an offense in Michigan and carries steep penalties, including fines and jail time.

Driving without insurance is categorized among Michigan traffic violations and infractions, and it carries severe penalties, including license suspension, vehicle impoundment, fines, and potential jail time. Additionally, uninsured drivers may be held financially accountable for all damages resulting from the accident.

Is It Illegal To Drive Without Insurance In Michigan?

Yes. Per MCL § 500.3102(2), operating a motor vehicle without the required insurance in Michigan is a misdemeanor penalized with a fine between $200 and $500, imprisonment for up to one year, or both. Offenders may also be subject to administrative consequences, such as driver's license suspension, proof of financial responsibility filing, and restriction of vehicle registration.

What Is the Minimum Insurance Requirement in Michigan?

Michigan's minimum auto insurance limits, as prescribed by § 500.3009, include the following mandatory minimum bodily injury and property damage liability (BI/PD) coverages:

• $ 250,000 per person injured or killed
• $ 500,000 per accident
• $ 10,000 property damage in another state

However, individuals may opt for lower limits with the following minimum thresholds:

• $ 50,000 per injured or deceased person in an accident
• $ 100,000 per accident
• $ 10,000 property damage occurring out of state

What To Do After A Car Accident With an Uninsured Driver in Michigan

An insured car accident victim in Michigan should take the following essential steps if the at-fault driver is uninsured:

Exchange Information and Help Injured Parties

§ 257.619 of the Michigan Compiled Laws highlights the duties of a driver in an auto crash within the state. Per the statute, drivers of vehicles involved in an accident are expected to provide valuable information to a police officer and the driver or occupants of the other vehicle involved in the accident. This includes their name, address, and the vehicle registration number. Drivers are also expected to remain at the accident scene and assist any injured party in securing medical attention.

File a UD-10 Traffic Crash Report

If the accident is fatal, injures anyone, or results in property damage of $1,000 or greater, drivers must immediately report the accident to the nearest police agency or the Michigan State Police Post (MCL § 257.622). In emergencies or to get an officer dispatched to the scene, motorists are advised to call 911.

Car accident victims are also expected to cooperate with the responding officers in providing information necessary to complete the UD-10 Traffic Crash Report. More information is available on the Michigan State Police's Traffic Crash Reporting Unit's FAQ page.

File a First-Party Insurance Claim

Insured car accident victims are expected to file a first-party (no-fault) insurance claim with their insurance provider, regardless of the at-fault party's insurance status.

Institute a Civil Lawsuit

Insured motorists can sue an uninsured at-fault driver for economic damages that exceed their no-fault insurance limits. They can also claim non-economic damages from the defendant if they sustain injuries that meet the thresholds specified in MCL § 500.3135.

What Happens If You Have No Insurance But The Other Driver Was At Fault?

Uninsured drivers in Michigan face heavy restrictions in recovering damages from uninsured at-fault drivers, even if they are 100% innocent. First, an uninsured driver is barred from receiving no-fault benefits, such as lost wages, medical expenses, and loss of services, and must pay these bills out of pocket (MCL § 500.3113(b)). Second, uninsured drivers cannot sue the at-fault driver for pain and suffering or for other non-economic damages.

Worse still, uninsured drivers may be personally liable for injuries caused to other eligible claimants in the accident, even those who share responsibility for the crash. Furthermore, an uninsured motorist remains subject to the legal consequences arising from their uninsured status.

Can I Sue an Uninsured Driver in Michigan?

Yes. Insured drivers in Michigan can sue an uninsured at-fault driver by filing a car accident lawsuit in a civil court in the county where the accident happened or the defendant resides. This suit can be filed in the small claims, district, or circuit court, depending on the amount of damages sought.

Under MCL § 500.3135, eligible claimants can also file a mini-tort lawsuit against an at-fault driver in a small claims court for a maximum of $3,000 for vehicle damage.

Will My Insurance Cover Me If the At-Fault Driver Has No Insurance in Michigan?

Yes, depending on the claimant's insurance policy. Generally, Michigan's mandatory PIP coverage pays for the insured's reasonable medical expenses, up to 85% of lost wages for three years, and up to $20 per day for replacement services. However, although Property Protection Insurance (PPI) covers damage caused by the insured vehicle to other people's property (fences, parked cars, buildings, etc) within the state, it does not cover damage to the insured's vehicle.

To recover damages when the at-fault driver is uninsured, an accident victim must rely on optional coverages, such as Uninsured/Underinsured Motorist (UM/UIM) coverage, medical payment (MedPay), uninsured motorist property damage (UMPD), or collision insurance, if those are included in their policy. More information on these types of optional auto insurance coverages is available in the state's automobile insurance guide document.

What Is Uninsured Motorist Coverage in Michigan?

Uninsured motorist (UM) coverage protects policyholders from financial losses incurred due to a crash caused by an uninsured or hit-and-run driver. In contrast, underinsured motorist (UIM) coverage covers costs associated with an auto crash involving an at-fault driver whose insurance limits are insufficient. Put simply, UM/UIM coverage pays for damages that an insured driver's PIP cannot cover when the responsible driver has no or inadequate bodily injury liability insurance—applying only in cases where the insured driver is legally entitled to recover such damages.

In Michigan, motorists are not required to accept UM/UIM coverage alongside the mandatory auto insurance policies. However, UM/UIM insurance is advised to ensure that drivers are protected in collisions with uninsured and underinsured drivers.

What If I Don't Have Uninsured Motorist Coverage in Michigan?

Drivers who have no uninsured motorist coverage have the following limited options to recover compensation:

• File a personal injury suit against the at-fault side.
• Request that the defendant's license be suspended for unpaid judgments in line with MCL § 257.511.
• Apply to the Michigan Motor Vehicle Accidents Claims Fund per the Motor Vehicle Accidents Claims Act.
• Apply for the Michigan Crime Victim Compensation (in DWI/DUI cases).

How Do I Get Compensation from an Uninsured Driver in Michigan?

A typical car accident lawsuit in Michigan passes through the following stages if no settlement is reached:

File a Complaint

Per MCL § 600.1901, car accident lawsuits in Michigan are commenced with the plaintiff filing a complaint in the appropriate court. A complaint contains basic information about the case, such as factual allegations, the legal basis for the claim, names of the parties, and relief sought.

After a complaint is filed with the court, a copy is served on the defendant along with a summons, as required by Michigan Court Rules MCR 2.102 and 2.105. These documents inform the defendant/respondent of the lawsuit and highlight the timeframe for the defendant's first court appearance. Failure to respond or appear in court may lead to a default judgment in the claimant's favor. If the defendant responds, the case proceeds to discovery.

Discovery

The discovery stage of a Michigan civil lawsuit is when both parties request and obtain evidence and other vital information from each other to support their respective cases. This is often done by asking direct questions (interrogatories), requesting relevant documents, conducting depositions (sworn testimonies), sending requests to admit facts, etc.

Case Evaluation/Mediation

After discovery, parties can opt for a case evaluation, in which independent lawyers review the case and give settlement recommendations. The court may also order mediation to encourage amicable resolution. If both approaches fail, the case will proceed to trial.

Trial

During this phase, both sides officially present their cases and aim to convince the judge or jury, primarily by calling witnesses and presenting evidence. If neither side demands a jury trial, the trial may be overseen solely by a judge.

Judgement

Once closing arguments are presented, the trial concludes, and the jury or judge issues a verdict, leading to a judgment in favor of either the claimant or the defendant.

How Much Can You Recover From an Uninsured At-Fault Driver in Michigan?

Claimants may pursue two types of compensation in a lawsuit against an uninsured at-fault driver in Michigan: excess economic losses and non-economic damages. Excess economic losses refer to expenses that exceed the claimant's personal injury protection (PIP) benefits. Non-economic damages, like pain and suffering, are only recoverable if the injury meets Michigan's legal threshold of MCL § 500.3135, which requires the claimant to have suffered death, severe impairment of body function, or permanent serious disfigurement.

Small claims courts in Michigan have jurisdiction over car accident lawsuits where the damages sought do not exceed $7,000 (§ 600.8401 of the Michigan Compiled Laws). Claims above $7,000 and not more than $25,000 should be filed at the General Civil Division of the district court (MCL 600.8301(1)). Meanwhile, per MCL § 600.605, every other claim exceeding the above limits should be filed with the circuit court.

Claimants should be aware that successfully obtaining compensation after a favorable judgment often depends on the defendant's financial ability to pay.

How To Find Out If the At-Fault Driver Has Insurance in Michigan

Motorists can look up an at-fault driver's insurance information by purchasing the UD-10 traffic crash report from the state's Traffic Crash Purchasing System (TCPS). Individuals can conduct a crash report search by driver's license number, date of birth, and date of crash, or by crash number, date of birth, and date of crash. It costs $15 to obtain a copy of the report.

Requesters who are unable to obtain a traffic crash report via the above means are advised to send a Freedom of Information Act (FOIA) request to the Michigan State Police. An alternative option is to query the sheriff's office or the local police department that responded to the scene of the crash. For example, the Grand Traverse County Sheriff's Office accepts in-person requests for traffic crash reports through its Records Division.

Finally, the discovery tools during litigation can be used to ask the at-fault driver to disclose their insurance information. Michigan Court Rules (MCR) 2.302 (b) (2) specifically allows a party to ascertain the existence of an insurance agreement.

Are Accidents Public Record in Michigan?

Yes. Accident-related court case files and traffic crash reports are public documents in Michigan per Michigan Court Rule 8.119 and the state's Freedom of Information Act (FOIA), respectively. However, portions of these records may be redacted or withheld from general public access when they fall under specific FOIA exemptions or court confidentiality rules.

Can You Go to Jail for Causing an Accident Without Insurance in Michigan?

Yes. In Michigan, driving without auto insurance or knowingly providing false evidence of auto insurance is a misdemeanor punishable by up to a year in jail (MCL § 257.328). Meanwhile, failure to show proof of insurance when demanded is a civil infraction punishable by a fine and no jail term.

Can You Settle With an Uninsured Driver Out of Court in Michigan?

Yes. Settlement agreements made out of court are legal and binding in Michigan. Per MCL § 691.1556a, written agreements executed in furtherance of a settlement reached by parties involved in a dispute resolution process are enforceable in the state.

Can I Get Compensation If I Was Partially at Fault?

Yes. Motorists can obtain compensation from the other driver even if they are partially responsible for the accident. However, the compensation they can recover will be reduced per their percentage of fault, and they are barred from financial compensation if their share of liability is 50% or more. This is based on the state's modified comparative negligence rule highlighted in Michigan Compiled Laws § 600.2959.