Unlike in decades past, the law in most states now requires motorists to have automobile insurance. Michigan is a no-fault state and does require that motorists carry insurance. These insurance requirements are in place to protect everyone involved in a car accident whether at fault or not. No-fault insurance laws mean that victims can quickly and fairly be compensated for the costs associated with a car accident, including medical expenses and lost income.
In Michigan, motorists are required to have the following insurance coverage:
-- Personal injury protection that covers medical care, wage loss, funeral benefits and many others
-- Property protection that will cover the damage your vehicle may have caused to another's property
-- Residual liability in the event you are found legally responsible or sued by another party the accident may have involved
-- Optionally, you can also acquire collision coverage to pay for damage to your vehicle
Even though auto insurance coverage is mandatory in Michigan, many residents find it challenging to pay for insurance resulting in underinsured or uninsured motorists. The good news is that you could be eligible to receive certain benefits following an accident even if you do not have car insurance. The no-fault system also means you might receive benefits like medical costs, wage loss, out of pocket costs and others even if the accident was your fault.
If you are uninsured or underinsured and have recently been involved in an accident, it is a good idea to talk to an attorney about your options going forward. In some cases, you may qualify for a personal injury lawsuit if the accident was caused by another driver's negligence.
Source: Insurance Institute of Michigan, "Auto Insurance Facts," accessed Jan. 20, 2016