When someone is injured in a car crash, they often assume that the severity of their injuries themselves will determine the value of their case and the amount of compensation they will receive as a result of the accident. While the severity of the injuries, wages lost, medical bills, etc. do play a large role in a personal injury case, the value of the case itself and the amount of money that you will receive is usually completely dependent on the insurance policy of the responsible party. In this blog we will be explaining how insurance policies work, why they are so crucial in personal injury cases, and what you can do before and after the accident to avoid being left empty-handed with uncovered costs due to someone else’s negligence.

No Insurance, No Payout: Why the At-Fault Driver’s Insurance Matters

When injured in any type of personal injury case, it is always the responsibility of the at-fault driver’s insurance company to compensate you for any damages caused as a result of the negligence of their client. Therefore, if the at-fault driver does not have insurance, you may be left with medical bills and injuries that will impact you for the rest of your life without sufficient financial compensation.

No-Fault State

However, under state law, Michigan is a no-fault state, meaning that each person’s auto insurance pays for their PIP benefits after the accident, regardless of who’s at fault.

As a result, if you’re injured in a car accident, you can still receive some compensation, as long as you have insurance.

While your PIP benefits from your own insurance company can provide you with some form of financial compensation, these benefits are very limited in that they only cover economic losses including things like medical expenses, lost wages, replacement services, etc. Whereas a settlement or verdict against the at-fault driver’s insurance company can cover a much broader range of damages including pain and suffering, emotional distress, long-term disability or disfigurement, and much more.

The PIP benefits you receive from your own insurance company work as more of a financial safety blanket, where the at-fault driver’s insurance company typically pays for the true impact that the accident had on your life, making it much more significant.

Uninsured Motorist Coverage

Uninsured motorist coverage is an optional part of every auto insurance policy that protects you when you are involved in a crash in which the at-fault driver does not have any insurance or you are involved in a crash in which the at-fault driver fled the scene.

Therefore, if you are ever injured in an auto accident in which the at-fault driver has no insurance or a hit and run accident, uninsured motorist coverage allows you to recover damages such as pain, suffering, medical bills, etc. from your own insurance up until your uninsured motorist coverage policy limit.

Underinsured Motorist Coverage

Underinsured motorist coverage is another optional part of every auto insurance policy that can protect you if you’re injured in an accident in which the at-fault driver does not have enough insurance to fully cover your damages.

In many cases, the at-fault driver may only carry the minimum amount of auto insurance possible which is usually not enough to fully compensate for serious injuries, pain and suffering, medical bills, etc. In this case, your underinsured motorist policy is able to make up the difference in how much insurance the at-fault driver has and the amount that the damages are actually worth depending on your underinsured motorist coverage policy limits.

Worst Case Scenario

If you do not have uninsured or underinsured motorist coverage and you are injured in a car accident in which the at-fault driver does not have insurance, your only remaining option is to file a lawsuit and get a judgement against the at-fault driver.

A judgement is a court ruling that essentially says the at-fault driver owes you for the injuries, pain, suffering, lost wages, medical bills, and any other damages that were caused as a result of the action.

However, if the at-fault driver does not have any auto insurance, chances are that they are not going to have any valuable assets, making it essentially impossible to get any sort of compensation from them. This, in turn, makes a judgement into nothing more than a piece of paper saying that the at-fault driver owes you, making this the worst possible outcome for any personal injury case.

Don’t Wait Until It’s Too Late

Uninsured and underinsured motorist coverage are crucial aspects of your auto insurance plan as they can protect you in any instance in which the responsible party does not have insurance. Even though it is illegal to drive on Michigan roads without auto insurance there is a significant percentage of the population that either can’t afford insurance or simply decide against it.

Uninsured and underinsured motorist coverage are the two ways that you can financially protect yourself from being left paying out-of-pocket for injuries, medical bills, or any other damages as a result of an accident in which the responsible party had an insufficient amount of insurance.

Depending on the severity of the accident, failing to protect yourself through your insurance policy can potentially ruin your life as you could be left with medical bills that you are unable to pay, lost wages, if you’re unable to work during your recovery, permanent physical and emotional damage, and much more.

In a world of unpredictable drivers, purchasing a sufficient uninsured and underinsured motorist insurance policy is an extremely important step for any driver on the road that could mean the difference between a smooth recovery and financial ruin.

Get David Get Paid

Here at Femminineo Law our experienced team of lawyers will fight until the very end for the compensation that our clients deserve.

If you or anyone you know has been injured, call Femminineo Law at 855-65-CRASH or visit our website at getdavidgetpaid.com.