Michigan’s no-fault insurance system is notorious for having high costs. However, the no-fault program itself largely limits the risk people have by having each person’s policy cover their losses regardless of the circumstances.
Still, as you might expect, because of the high cost associated with the no-fault insurance system and related policies in Michigan, there are quite a few drivers out on Michigan roads without current liability insurance on their vehicle.
Michigan is No. 4 in the nation for uninsured drivers
If there’s one thing that you don’t want to have a high rank in as a state, it’s probably having irresponsible citizens without insurance. Unfortunately, Michigan takes fourth place in the country for the number of drivers on the road without active liability insurance policies.
According to research by the Insurance Information Institute (III), approximately 20.3% of drivers in Michigan do not have an active liability policy on their vehicle at any given time. That means that one in five drivers that you encounter on the road does not have insurance on their vehicle. Someone without a policy could easily cause a crash that results in property damage or medical costs for you.
What does it mean when the other driver doesn’t have insurance?
Under the no-fault system in Michigan, your insurance covers the cost you report in a claim, whether they are medicals costs for you, medical costs for a passenger who got hurt or property claims related to damage to your vehicle.
However, if your costs from a crash caused by another driver exceed the coverage you carry, you can then file a claim with the other driver’s insurance or take action to pursue compensation from them.