The Cost of Not Having Auto Insurance in Michigan

Auto insurance protection is a legal requirement in the state of Michigan, but due to the high-cost, many Michigan drivers still operate their vehicles uninsured, just hoping they will not be involved in a car accident.

While this may be easier to accomplish in the rural areas of the state, it is a bad decision in the urban areas where there’s a substantial amount of traffic on the roads. It is easy to be involved in an auto accident through no fault of your own and end up being denied insurance coverage for injuries, all because you failed to carry auto insurance protection on your vehicle. It may not seem fair, but that is the law in Michigan. And the insurance companies know it.

Reasons for Increased Premiums

Many motorists think they’re saving money by driving uninsured, but this is not the case. Even the most careful, experienced driver will eventually become involved in a car crash or fender bender in Michigan. When an uninsured driver causes damage to other property, it costs everyone on the road. Other drivers will likely sue the uninsured driver, who may end up having to pay for the damages out of pocket.

In Michigan, along with many other states, it becomes a cycle. Drivers don’t get insurance because they can’t afford it, and then end up in an accident that costs other drivers. Those insurance companies now have to pay out extra, because the driver that caused the crash doesn’t have their own coverage. After that, car insurance companies raise their premiums, making it even harder for those that already can’t sustain the cost.

Penalties for Driving with No Insurance in Michigan

One of the primary reasons uninsured drivers in Michigan are vulnerable is that it is a no-fault insurance state, meaning that injured motorists first turn to their own insurance company for initial coverage. Problems can mount for drivers when they only carry the state minimum and are involved in a severe accident with extensive injuries. The minimum doesn’t cover all that much when you consider how much medical treatment costs.

Claims filed against opposing negligent drivers must be approved by the state. Those travelers who have no PIP protection are exempt from pursuing damages against a negligent driver because they were driving illegally when the accident occurred.

Having no insurance in Michigan is also a criminal charge that can result in the loss of driving privileges for at least six months, in addition to fines. Maintaining a car may be expensive on a monthly basis, but if the slightest accident occurs, you may be paying out way more than should. Most people throughout the state need their cars to get to work, so it’s essential to abide by state insurance laws and avoid having your license suspended or revoked entirely.

What to Do if You are Involved in an Accident

If you are involved in an automobile accident without insurance, it’s important to seek assistance from a well-versed car accident attorney. If you hire an attorney, your legal representative will evaluate your case, fighting for your freedom in an effort to prove your case and get you the monetary compensation that you deserve.

With over 20 years of experience helping citizens of Michigan, our reputable automobile insurance attorneys are passionate about arguing for the rights and freedom of our clients. Contact (877) 425-0743 for your free case evaluation.