Many people in the Detroit metro area work hard day-to-day just to make ends meet. One major expense many must deal with when paying their monthly bills are high auto insurance premiums due to living in the city. It is tempting when your premiums are so high to skip out on extras like uninsured/underinsured motorist coverage. However, there are important reasons why uninsured/underinsured motorist coverage should not be overlooked.
What is uninsured/underinsured motorist coverage?
Michigan law requires drivers to carry a certain amount of personal injury protection and bodily injury coverage that will kick in to pay for medical expenses in the event of a crash. However, not everyone will follow these laws and it is entirely possible that you could be in a car accident involving a motorist who does not have enough insurance to pay your medical expenses or who does not have insurance at all. This is when it is important to have uninsured/underinsured motorist coverage. In Michigan, motorists are not required to carry uninsured/underinsured motorist coverage. But if you do carry this type of coverage, it can pay for your medical bills as long as you were not more than 50% at fault for the collision.
What happens if you cause a crash and do not have auto insurance?
Michigan law is not very forgiving to motorists who do not carry auto insurance and are subsequently in a crash. If you do not have auto insurance, and you were involved in a car accident, you will have to pay for your medical expenses and vehicle repairs out-of-pocket even if you were not at fault for the crash. If you were at fault for the crash, and you do not have auto insurance, you may be responsible for paying the other party’s medical expenses, lost wages and vehicular damages related to the crash. And, if you are involved in an at-fault crash and you do not have auto insurance, you may be required to carry SR-22 insurance which could raise your car insurance premiums.
Learn more about auto accidents in Michigan
Many people in Michigan may be reluctant to pay more in auto insurance than the bare bones, but uninsured/underinsured coverage should be considered and not carrying insurance at all should be avoided. This post is for informational purposes only and does not contain legal advice. Our firm’s webpage on auto accidents in Michigan may be a good starting point for those who want to learn more about their rights and options.