Can You Get Insurance After an Accident?

Summary of Michigan’s Car Insurance Laws

Every car owner in Michigan is required to purchase car insurance. Under the law, you should have no-fault insurance coverage, which includes personal injury protection. This coverage helps cover medical expenses and other damages for individuals involved in a collision. This mandatory insurance pays your medical expenses, replacement benefits, wage loss, and damage to other people’s property in case of an auto accident. It does not matter who caused the accident.

However, in case of car repairs, the no-fault insurance does not pay for it. You need to buy collision coverage to cover the damage to your car. But what happens if you’re in an accident but you are not insured?

Penalties for Driving Without Car Insurance in Michigan

Michigan ranks fifth among those states with uninsured drivers (mainly because of high insurance rates), even though driving without insurance is considered a misdemeanor.

Here are some of the penalties if you are caught driving uninsured:

Driving without car insurance is punishable with a fine of up to $500, jail time of up to one year, or both.
Your driver’s license may also be suspended for up to 30 days or until you can show proof of insurance coverage.
Failure to show proof of car insurance policy may result in restrictions on car registration privileges. For instance, the Secretary of State may not allow you to renew your license plate. You may also be refused to transfer, replace, or purchase a new registration for your vehicle.
If you’re involved in an at fault accident without insurance, you cannot sue the other driver for pain and suffering.
You are disqualified from the no-fault medical benefit coverage. This means you will have to pay for your own medical bills.
You will not receive reimbursement for lost wages.
If your vehicle is damaged, you will have to pay for its repairs.
You may also be held financially responsible for those people who were injured because of the car crash.

Can I Buy Auto Insurance After an Accident?

In case you’re already in a situation where you had an accident, and you were uninsured, purchasing car insurance coverage may be the least of your concerns at this time. However, as you’ve read earlier, you are always at a disadvantage if you’re uninsured and have no insurance coverage.

Understand that when you purchase auto insurance after the accident, the new policy will not cover the expenses of the recent accident. There is no retroactive effect under the new policy, and trying to ante-date your accident could result in insurance fraud. Nevertheless, this should not prevent you from purchasing an auto insurance policy. Being covered can give you peace of mind, knowing that you won’t have to worry about costs due to the car accident in case another accident happens. It’s crucial to understand how insurance claims work after an accident, especially when considering purchasing insurance post-accident, to navigate potential ‘no pay, no play’ policies and the duration claims stay on your record.

What is Uninsured Motorist Coverage?

If a person is injured by an uninsured driver and the driver is at fault, the uninsured motorist coverage takes care of the damages of caused by the accident. It also applies if a person was injured in a hit-and-run accident by an unidentified driver.

The injured person’s insurance company or own insurance provider pays the claim. However, this coverage is optional, unlike no-fault insurance coverage. This means that if you are insurance but your insurance policy does not have the uninsured motorist coverage, you may not be able to claim from your own car insurance coverage.

Things to Consider Before Paying an Accident Out of Pocket

When you’re involved in a minor auto accident, you may consider paying the expenses from your own pocket. If the other driver is at fault, they might offer you money for the damages and injuries.

While this is the most convenient thing to do, especially if it is a minor accident, there are things that you have to consider first.

Know that settlement agreements are final. If you enter into an agreement right away, you might not be able to reimburse injury-related costs and other expenses.
Minor injuries may be more serious than you think. Before you decide that your injuries are minor, have yourself checked by a medical professional. Some accident-related injuries show only after a few days. On the other hand, other injuries may heal longer than expected.
Accident-related expenses usually cost more than what you think. Out-of-pocket expenses do not include lost wages, cost of future medical treatment, and emotional pain and suffering.

If ever you are placed in this situation, clear your head first before making any decision. It is best to consult an experienced personal injury lawyer to know if you’re making an informed choice. Avoid the mistake of handling your own uninsured motorist claim. More importantly, do not talk to the insurance company on your own.

Insurance adjusters do not always have your best interests in mind. Avoid unnecessary stress by seeking help from attorneys experienced in handling this kind of situation.

Why You Should Consider Hiring a Car Accident Lawyer

Car insurance laws can be complicated, especially if you’re faced with a situation involving uninsured motorist. Whether you are the uninsured driver or it is the other person, speak with a car accident lawyer. This way, you will know if you have the right to recover compensation or if you can sue the at-fault driver.

The Clark Law Office has the best accident lawyers in Lansing, Michigan. Our team of dedicated legal practitioners can help you with your situation, especially if you are caught driving without car insurance. On the other hand, if you’re the victim of an uninsured driver, we can assist you in filing an insurance claim to get compensation from the at-fault driver.

Make sure to set an appointment with us. Initial consultation is free.

Frequently Asked Questions

Will Insurance Companies Go after Uninsured Drivers?

Yes, drivers who operate vehicles without insurance are required to reimburse the auto insurance provider that paid the no-fault benefits.

Will My Insurance Go up if I Was in an Accident Where I Wasn’t at Fault?

Generally, car accidents can affect your rates for three to five years. Of course, the more severe the accident, the longer your insurance rates can go up.

Can You Reduce Your Insurance Rate After an Accident?

Yes, some strategies that can help lower your rates even after an accident. These include the following:

Take defensive driving lessons. Some insurers that offer discounts for drivers who enrolled in defensive driving courses.
Change your current insurance policy and opt for lower coverage. If you decide to change your policy, shop with different insurance companies.

Enroll in a safe driver program. A driver safety class is also another way to lower your insurance premium. After a certain period, if you are able to show a clean driving record, or you haven’t had any ticket or accident, the insurance company will give you a discount.

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Matthew Clark

Content checked by Matthew Clark, personal injury attorney with The Clark Law Office. Matthew is the owner of The Clark Law Office and represents injury victims all over the State of Michigan. He has collected multiple million dollar verdicts and settlements for victims of auto accidents, dog bites, slip and fall, and medical malpractice. The main office is in Okemos, MI but you can also find us in Lansing and Eaton Rapids.