What Sort of Auto Insurance Is Mandatory in Southfield?

As a driver in Southfield, there are three mandatory auto insurance coverages you’re required to have in Michigan. They are as follows:

• personal injury protection (PIP), which pays for a car accident victim’s medical bills and lost wages
• bodily injury (BI) liability or residual liability coverage in case a driver injures someone in a car
• property protection coverage (PPI) for damage to tangible property such as a parked car, trees, buildings, or other property

In addition, you are required to purchase a minimum $10,000 of property damage coverage as part of your liability.

There are also uninsured and underinsured motorist coverages available. These are optional, but both protect you if you’re in an accident with a driver who doesn’t have enough or any coverage. Without these coverages, you may have to pay out of pocket for medical expenses or vehicle repairs from an accident that won’t be otherwise covered.

What About Health Insurance?

A big part of what makes PIP coverage mandatory is that it will cover your medical expenses and lost wages, even if you don’t have health insurance and regardless of fault.

Unfortunately, the rising cost of insurance (both health and auto) has made it difficult for those who are financially struggling to get coverage – even though driving without auto insurance is against the law.

Hospitals are still required to treat drivers with neither type of insurance though. From there, it may be possible to seek coverage through Medicaid, the insurance of a resident relative, or the Michigan Assigned Claims Plan (MACP) to cover expenses. However, there’s no guarantee though.

What Happens After a Car Accident in Southfield With an Uninsured Driver?

When you’re looking to collect damages for your car accident in Southfield with an uninsured driver, it can get tricky. The first consideration is whether it was you or the uninsured driver who was at fault.

If the uninsured driver is clearly at fault, he or she can be held financially liable for your medical bills, lost wages, vehicle damages, and pain and suffering. The auto insurance companies may also come after them to repay benefits.

It’s not any better for the uninsured driver who was NOT at fault though. He or she is barred from suing the at-fault driver, and may face civil fines, driver’s license suspension, and possible jail time.

Meanwhile, if you were the one who is 50% or more at fault you will be ineligible for uninsured motorists.  The other participants that caused the accident must be majority at fault.  However, you can still collect PIP benefits, even if you are found majority at fault.

So, Does Filing a Lawsuit Make Sense?

While you can file a lawsuit against them to pursue compensation for any losses you incur, the main challenge may be collecting the money awarded in a judgment. If the uninsured driver is financially struggling and has no assets to offer, you may not be able to recover the full amount.

Even so, don’t be too quick to assume an uninsured driver is financially challenged. There could be circumstances where they are able to compensate you.

Involving a car accident lawyer is crucial at this point because they can run an asset and credit check on the driver to assess their financial status. If they find the driver is financially solvent in some way, they may advise you to file a lawsuit to seek compensation and damages.

Are You Ready to Explore Your Options?

Don’t give up hope. It’s possible you can collect damages after your car accident with an uninsured driver in Southfield.

You just need a team of highly experienced Southfield car accident lawyers on your team. You need the expert attorneys at Kajy Law.

Call us today at 877-KAJY-CARES or fill out our online form to set up your free consultation. We’ll discuss your situation and explore every available legal option. So let’s talk.