What If I’m Hit By an Uninsured Motorist? [Updated]

MIP Attorney Grand Rapids, MI

A 2015 study from the Insurance Research Council found that 1 in 8 American drivers are uninsured. They also found that approximately 20.3% of Michigan drivers don’t have auto insurance. If you or a loved one were hit by an uninsured motorist, your first step should be to file a claim with your insurance company. If your injuries are severe, call our auto accident attorneys to evaluate your case.

Uninsured/Underinsured Motorist Coverage

Was another driver responsible for the accident that left you seriously injured? If so, you may be able to step outside the no-fault system to file a claim with the at-fault driver’s insurance company. Michigan drivers are required to carry at least $20,000 per person and $40,000 per accident in Residual Bodily Injury Liability (BI) coverage.

The problem is that not all drivers have insurance, which is why you may want to consider uninsured/underinsured motorist coverage. While it’s not required in the state of Michigan, it can help protect you in the event you’re in an accident with a driver who is uninsured or underinsured. In this situation, your insurance company would pay the difference between what the uninsured/underinsured motorist compensates and what you’re entitled to receive.

Changes to Michigan Auto Insurance Law

Michigan auto insurance law will change on July 1, 2020. Are you ready? Currently, drivers are required to have unlimited Personal Injury Protection (PIP) coverage with their auto insurance. After July 2020, drivers will be able to choose from different tiers of coverage when they issue or renew policies. Lawmakers are hoping that these new changes will reduce how much Michigan drivers pay for auto insurance.

Before July 1, 2020

Michigan is a no-fault auto insurance state. This means that if you were to get into an auto accident, you would be covered by your own PIP regardless of who was at fault. Your first step would be to file a claim with your insurance company for economic damages, such as medical bills and lost wages. With unlimited PIP coverage, your insurance company would have to pay all of your medical costs associated with car accident injuries.

If you were seriously injured, you would possibly be able to step outside the no-fault system to file a claim against the at-fault driver. Our car accident lawyers would then be able to help you receive compensation for non-economic damages, such as pain and suffering.

On and After July 1, 2020

Michigan will still be a no-fault auto insurance state on and after July 1, 2020. However, Michigan drivers won’t be required to carry unlimited PIP coverage (unless they want to). Lawmakers are hoping that the new options for PIP coverage will help Michigan drivers save money in the long run. The lower your PIP coverage, the lower your premium.

Your new options for PIP coverage will be:

  • Unlimited
  • $500,000 limit
  • $250,000 limit
  • $50,000 limit*
  • Opting Out**

*To qualify for the $50,000 limit, both of the following must apply:

  1. The insured has to be enrolled in Medicaid. 
  2. The spouse or any relative living in the same household as the insured must be enrolled in Medicaid, have qualified health coverage, or have PIP coverage under another policy.

**To avoid paying for PIP coverage altogether, both of the following must apply:

  1. The insured has to have Medicare coverage.
  2. The spouse or any relative living in the same household as the insured must have qualified health coverage or PIP coverage under another policy.

Before July 1, 2020, you would not have been able to step outside the no-fault system unless the other driver was responsible for the accident and caused death or grievous injuries. After July 1, 2020, this will slightly change. Instead, you’ll be able to step outside the no-fault system if your medical expenses exceed the limits of your PIP coverage. In this situation, you would then sue the driver at fault for the remaining compensation you’re due.

Request a Legal Consultation

Aggressive. Thorough. Experienced. Our legal team will do everything in their power to help you receive the compensation you deserve for auto accident injuries. To request a consultation with one of our auto accident attorneys in Grand Rapids, call Beurkens Law at (616) 459-5344. Our law firm is open 24 hours a day!

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