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Uninsured motorists play a role in Michigan insurance prices

As if being in a car accident is not stressful enough, being in an accident with an uninsured motorist is that much more stressful and anxiety-ridden. When involved in an accident with someone who is uninsured, there are a number of questions about who is going to pay for the damages resulting from the accident. The purpose of insurance is to protect the insurance holder against personal liability. Most people pay for car insurance because it is the law in most states and because its goal is to ensure that the insured is provided for when accidents occur.

Recent studies show that Michigan car insurance rates are some of the most expensive in the country. This is due to a number of factors, including, but not limited to, the number of car insurance companies for available, the number of drivers who drive uninsured, the geographical area and traffic patterns and conditions. Although all of these factors play a role in the price of car insurance, the most significant of these factors is uninsured drivers, for they are the ones who actually cause insurance premiums to be as high as they are in some areas.

When involved in an accident with an uninsured driver, the fact that they are uninsured does not preclude one from bringing a claim in court. The lack of insurance complicates matters with respect to getting damages paid for in a timely manner. However, it does not hinder any damages claims that may be brought before a judge. Compensatory and punitive damages can still be sought against an uninsured motorist.

Source: MSN Money, “How expensive is your state for car insurance?,” Barbara Marquand, Feb. 26, 2014

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