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No-Fault Insurer’s Reimbursement Right Against At-Fault, Uninsured Driver

Lawyer Commentary on No-Fault Statute: MCL 500.3177

Uninsured motorist reimbursement liability; Recovery by insurer of benefits and costs from owner or registrant of uninsured motor vehicle

This No-Fault statute applies to an uninsured motorist who has caused a car accident.

It provides as follows:

Where an uninsured driver causes a car accident involving personal injury to another person or other persons, the insurance company or companies that are required to pay No-Fault (PIP) benefits to other persons who were injured in the accident may then hire a lawyer and bring a lawsuit to sue the uninsured driver to be reimbursed for the money they paid out in No-Fault benefits.

In other words, if an injured person suffers serious injuries, such as a traumatic brain injury or a spinal cord injury involving tens of thousands of dollars in medical treatment, and three years of wage loss and replacement services, the uninsured motorist would have to reimburse the insurance company that paid these benefits.

Significantly, not only may the auto insurance companies sue to recover for all of the No-Fault benefits they paid out, but they can seek reimbursement for “incurred loss adjustment costs and expenses and incurred attorney fees.”

This penalty provision can be extremely harsh. Auto insurance company lawyers frequently work with collection attorneys to continue to seek reimbursement, in some cases, over the course of the uninsured driver’s lifetime.

If an uninsured driver does not pay within 30 days of a judgment pursuant to this statute, the secretary of state may suspend or revoke the uninsured driver’s license and vehicle registration.

Importantly, an uninsured driver has the opportunity to pay down this debt by making “a written agreement” to make installment payments to the Michigan automobile insurance placement facility.

No-Fault Lawyers of Michigan Auto Law

The lawyers of Michigan Auto Law have been specializing in auto No-Fault litigation for more than 50 years. If you have been injured in a car accident, truck accident or motorcycle accident and need help navigating through your No-Fault insurance policy, please call one of our expert attorneys for a free case evaluation at (800) 777-0028. Or you can fill out our consultation form. There is no fee or obligation.

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