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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

This No-Fault statute applies to an uninsured motorist who has caused a car accident. For example, where an uninsured driver causes a car accident involving personal injury to another person, an insurance company required to pay No-Fault (PIP) benefits may then hire a lawyer and bring a lawsuit to sue the uninsured driver for reimbursement.

Reimbursement can be made in installments if coordinated with the secretary of state. If the uninsured driver does not pay within 30 days, the secretary of state may suspend or revoke the uninsured driver’s license. Also, most insurance companies in Michigan have lawyers that can file a lawsuit against the driver and seek a judgment against the uninsured driver for payments the insurance company has been forced to make. These lawyers also work with collection attorneys to continue to seek reimbursement, in some cases, over the course of the uninsured driver’s lifetime.

This penalty provision can be extremely harsh. Not only can an uninsured driver be responsible for reimbursement for all no fault PIP benefits back to the insurance company that is required to pay these benefits, but if there is also a subsequent uninsured motorist lawsuit, the uninsured driver/owner will have to pay back whatever verdict or award was rendered.

Therefore, 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 two years of wage loss and replacement services, the uninsured motorist would have to reimburse the insurance company that paid these benefits. If that injured person also has an uninsured motorist policy and is able to hire a lawyer and settle his injury claim with this insurance company, the uninsured motorist would have to reimburse the insurer for this uninsured motorist settlement as well.

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.

We are here to help you.