It’s a well-known fact that auto insurance in Michigan is expensive and among the nation’s highest. Because of these extremely high prices, many motorists elect to drive without any insurance at all. In fact, nearly 20% of all the cars on the road in Michigan are uninsured according to the Insurance Research Council. Unfortunately, the consequences of doing so can be even more costly. The cost of a monthly premium pales in comparison to the money and possibly jail time it will cost you if you unfortunate to be involved in a vehicle accident.
1) You Will Have To Pay Your Own Medical Bills
If you have no-fault auto insurance in Michigan, your own insurance company is responsible for paying for all your medical bills now and for the rest of your lifetime if they are related to the accident. It doesn’t even matter if the accident was your fault, your bills will still be paid for. With the high cost of medical expenses, this is an extremely valuable benefit to drivers in Michigan that have insurance. It is the best coverage in the Nation if you happen to be hurt and have mounting medical bills. Unfortunately, if you elect to drive uninsured, you will be responsible for paying all of your medical related costs out of pocket and this can easily cause massive debt and credit problems for the rest of your life.
2) You Will Not Be Reimbursed For Lost Wages
Michigan No-fault law reimburses drivers who have sustained serious injuries and are incapable of returning to work. This is extremely important for individuals who are supporting their family and children. With no income coming in, it can be difficult or impossible to meet financial obligations. However, if you are uninsured, you are not eligible to receive any lost wages after the accident. Nobody thinks they will be involved in an accident, but it’s more common than you think and don’t want to put in a very tough situation.
3) Vehicle Damage
While this consequence isn’t as costly as others mentioned, it could still cost you up to $1000. Michigan Mini-Tort law allows drivers not at fault to collect up to $1000 for repairs required to their vehicle. Previous to October 2012, uninsured drivers were still eligible for this but that is no longer the case.
4) You Can’t Collect 3rd Party Benefits Including Pain and Suffering
If you happen to be seriously hurt in an auto accident and driving an uninsured vehicle, you are unable to collect pain and suffering benefits because you are not entitled to sue the at-fault driver. You could potentially lose out on 100’s of thousands of dollars simply because you did not purchase no-fault auto insurance.
5) You Might Have To Pay The Other Driver’s Pain and Suffering Out-of-Pocket
If you were driving a vehicle that was uninsured you could be held legally responsible for the other driver’s third party benefits which could potentially lose everything you have worked for. If the accident was your fault and the other driver or passenger suffered an injured deemed to be a serious impairment of a bodily function, they can sue you personally and come after everything that you have including your home and assets. If you simply purchased no-fault auto insurance in Michigan, your insurance company would be responsible for paying these costs and they could not come after your personal assets.
6) You Might Have To Pay The Other Parties Medical Bills and Lost Wages
Regardless if the accident was your fault or not, the insurance company of the other injured party can sue you in court for medical expenses and lost wages. This may not seem fair, but it can be avoided by purchases auto insurance. Even worse, if you fail to pay these costs within 30 days of when ordered, you will have you driver’s licenses suspended or revoked.
7) You Could Go To Jail and/or Have To Pay Hefty Fines
Even if you aren’t in a vehicle accident, there are consequences for driving without auto insurance. It is considered a misdemeanor in the State of Michigan to drive without insurance and you will be facing jail time of under 1 year and a fine up to $500 or both.
The Bottom Line Is That You Need Basic Michigan PIP Insurance
While it’s certainly true that auto insurance in Michigan can be expensive, the alternative is much more costly and potentially has lifelong consequences to your financial well-being. If you have basic Michigan PIP insurance, you are safeguarding your future. You will be reimbursed for your lifetime medical expenses related to the accident, lost wages, and other services. You also limit your personal liability in the case of an accident. You will save in the long-run without a doubt, it’s not worth the risk of driving without auto insurance. If you are unsure of what auto insurance policy to purchase, our personal injury lawyers can help. Call us today at (517) 347-6900
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