Being in a car crash is already shocking and confusing. When you find out the at-fault driver has little or no insurance, your worry increases exponentially. Because Michigan is a no-fault state, your personal injury protection (PIP) covers certain immediate expenses, up to the medical and wage loss limits selected in your policy.
When an uninsured or underinsured driver causes a crash, significant challenges often arise in obtaining adequate compensation for all damages, including pain and suffering. However, part of the solution may be your own insurance policy.
Immediate steps at the scene
Safety comes first, so seek medical attention immediately, even if your injuries seem minor. Call 911 if anyone is injured. Next, report the accident to law enforcement. A police report is essential for documenting the other driver’s uninsured status. Other vital steps include:
- Taking extensive photos of the scene, vehicle damage and visible injuries
- Gathering the other driver’s name, address and license plate
- Getting contact information for any witnesses
Always notify your own insurance company right away, but only provide basic details. Don’t admit any fault or say you “feel OK,” as some injuries don’t show up for hours or days after a crash.
Initial compensation after an accident
In Michigan, your PIP coverage pays for your medical bills up to your chosen limit. It also pays 85% of lost wages for up to three years, subject to a state-determined monthly limit (currently $7,201 per month for the period of October 1, 2025, through September 30, 2026, or the current statutory cap), regardless of who was at fault.
Uninsured/underinsured motorist (UM/UIM) coverage is optional in Michigan, but provides vital protection. UM/UIM is a primary way to recover money for economic (medical bills and lost wages) and noneconomic (pain and suffering) damages. This involves a contractual claim against your insurance company, which may require arbitration or a lawsuit if they dispute your claim. To recover noneconomic damages, you must also generally meet the ‘serious impairment of body function’ threshold.
When you pursue UM/UIM benefits, you are essentially filing a claim against your own insurance company, which can be complicated, and another reason not to overshare when reporting the accident. All insurance companies typically look for any reason to deny or reduce payouts.
How comparative negligence works
In Michigan, the modified comparative negligence rule holds that if you are found more than 50% at fault for the crash, you cannot recover any damages (both noneconomic and excess economic damages) in a third-party lawsuit against the at-fault driver. Your PIP benefits (up to your policy limits) are paid by your insurer regardless of your fault percentage.
The best way to move forward is to keep a complete file of all medical bills, expense receipts and any communication with insurers. However, a successful UM/UIM claim often hinges on having skilled legal representation to gather evidence, negotiate with insurers and fight for fair compensation.