You’re driving home from work when another car runs a red light and slams into you. The impact leaves you shaken, severely injured and facing a totaled vehicle. The other driver admits fault at the scene, but you soon discover they don’t carry enough insurance to cover your medical bills and vehicle repairs.
This situation can leave you feeling helpless and confused about how you can recover compensation for your losses. Thankfully. Michigan law provides several options where you can move forward. Let’s explore three ways you can seek compensation.
Option 1: Collect from your underinsured policy
Michigan has a no-fault car insurance system. This means your own insurance pays your medical bills and some lost wages, no matter who caused the crash.
However, you should also check if you have Underinsured Motorist (UIM) coverage. This coverage is important if the crash was serious and the other driver does not have enough insurance to pay for all your major losses such as pain and suffering.
If that happens, you can file a claim with your own UIM policy. Your insurance company will usually then pay the extra money you are owed, up to your policy’s limit. If you lack this coverage or if it still doesn’t cover all your losses, you may need to pursue the at-fault driver directly.
Option 2: Sue the at-fault driver for negligence
You can pursue legal action against the at-fault driver when your own insurance doesn’t provide adequate coverage. Michigan law allows you to sue for negligence when you suffer serious injuries. But first you must prove that the other driver acted carelessly and caused you harm.
Keep in mind that even if you win your case, collecting payment from an underinsured driver can prove challenging. Fortunately, Michigan offers another resource when you don’t have traditional insurance options in place.
Option 3: Apply for the Michigan Assigned Claims Plan
The Michigan Assigned Claims Plan (MACP) serves as a safety net. This state program helps car accident victims when they lack applicable insurance coverage. However, you must meet specific eligibility requirements to apply. The plan covers medical expenses and personal injury benefits when no other insurance applies.
Explore your legal options
Evaluating all these options helps you determine which path offers the best chance for full compensation. You deserve compensation for your injuries and losses. Whether you pursue your own insurance coverage, file a lawsuit or seek help from the state program, taking action protects your rights.
This is where legal professionals can help. They understand these complex situations and can guide you toward the best solution. Schedule a case review with Holmes and Wiseley today to explore your options and protect your financial future.
