Expert: Doctor Settlement - 6/20/2007

Question
I was involved in accident where a flower delivery guy hit my car. I had no insurance at the time and he had no-fault insurance through the company he worked for. Can I file a claim on his insurance for the estimated $300 it will cost to get my car fixed? and get the $300 or will it be null and void b/c I had no insurance? Thank you for your help.

Answer
Hi Kim,

Please do not drive without insurance.  What if someone really injured you next time?  You would have no recovery.

But in the case of property damage, they have made a limited right of recovery even if you had no insurance.  Thus, you can file a claim for the $300 even if you had no insurance.  The limit on property claims against a tortfeasor by someone driving an uninsured vehicle is $500.  If they give you a hard time, I will but the actual statutory citation and language just below my signature.  

But note: if you suffered bodily injuries you probably cannot sue if you had no insurance.

Michigan's "No Fault" statute was designed to limit litigation, by shifting the risk of certain losses from automobile accidents to the owner of the vehicle.  For example, beyond Michigan's "mini-tort" law, you are responsible to insure your own vehicle and its contents against damage in an accident.  

If you choose not to insure your vehicle for collision damage, even if you are 100% innocent of blame in an accident, if the other driver is properly insured your ability to recover from the other driver for property damage is limited to a few hundred dollars under the mini-tort statute, MCL 600.3135(3)(e). (This is why the statute is called a "No Fault" statute – you are responsible for certain costs regardless of who is at fault.)

You will probably not be able to file a lawsuit against the other driver if:
   You are more than 50% at fault for the accident;
   You owned the vehicle in which you were riding, and did not carry a valid policy of insurance at the time of the accident.

So go ahead and make the $300 claim and go forth and sin no more—buy insurance.

Best Wishes,

Dr. Settlement, J.D. (Juris Doctor)
Http://www.SettlementCentral.Com



http://www.legislature.mi.gov/(S(fmfx1155qod1sh55zrnqs3rn))/mileg.aspx?page=getobject&objectname=mcl-500-3135
[note: if too long to copy in one solid line, copy and paste half at a time and then make sure they are connected to form an uninterrupted URL.]

500.3135 Tort liability for noneconomic loss; action for damages pursuant to subsection (1); abolition of tort liability; exceptions; action for damages pursuant to subsection (3)(d); commencement of action; removal; costs; decision as res judicata; “serious impairment of body function” defined.
Se (e) Damages up to $500.00 to motor vehicles, to the extent that the damages are not covered by insurance. An action for damages pursuant to this subdivision shall be conducted in compliance with subsection (4).
(4) In an action for damages pursuant to subsection (3)(e):
(a) Damages shall be assessed on the basis of comparative fault, except that damages shall not be assessed in favor of a party who is more than 50% at fault.
(b) Liability shall not be a component of residual liability, as prescribed in section 3131, for which maintenance of security is required by this act.