Detailed Answer
Under Michigan’s no-fault insurance system, every driver must carry personal injury protection (PIP) benefits and residual liability insurance. When the at-fault driver has no active insurance on the date of loss, you have several paths to recover your losses.
1. Use Your Own PIP and Uninsured Motorist Coverage
Michigan law (MCL 500.3101 et seq.) requires PIP coverage for medical expenses, wage loss and attendant care. If the other driver has no insurance, you can claim PIP benefits under your own policy. If you purchased uninsured motorist (UM) or underinsured motorist (UIM) coverage, you can also pursue pain and suffering and property damage through MCL 500.3113. Without UM/UIM coverage, you may lack compensation for non-PIP losses.
2. File Through the Michigan Assigned Claims Plan
The Michigan Assigned Claims Plan (MCL 500.3171 et seq.) steps in when an at-fault driver lacks required coverage. The facility assigns your claim to a licensed insurer to pay PIP, property protection and residual liability benefits. See MCL 500.3171.
3. Sue the At-Fault Driver Directly
You can file a civil negligence lawsuit against the driver. You must prove duty, breach, causation and damages. If the driver does not respond, you can seek a default judgment and enforce it through wage garnishment or property liens.
4. Pursue Vicarious Liability Claims
If the driver was working at the time of the crash, an employer may be liable under respondeat superior. Vehicle owners may also face liability under the Motor Vehicle Code at MCL 257.401.
5. Explore Other Insurance Sources
- Household members’ automobile policies
- Umbrella or excess liability policies
- Rental or employer-provided vehicle coverage
Helpful Hints
- Check your policy declarations for PIP and UM/UIM limits.
- Report your PIP claim within one year as required by MCL 500.3142.
- Notify your insurer and request assignment through the Assigned Claims Plan promptly.
- Preserve evidence: photographs, medical records and police reports.
- Consider legal counsel if damages exceed your policy limits or if collection is challenging.