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UM and UIM Insurance Coverage

If you are a Michigan motorist involved in a car wreck caused by another driver who has little or no auto liability insurance,  you could be stuck with no way to receive compensation for your injuries — unless you have enough underinsured (UIM) coverage or uninsured (UM) coverage. That coverage allows you to recover the money you need from your own insurance company, up to your policy limits.

However, collecting UM and UIM coverage from your own insurance company can be challenging and frustrating. That’s where the car accident attorneys at Michigan Injury Lawyers can help.

Based in Bloomfield Hills, we have represented many Michigan motorists injured in automobile accidents.  As you focus on your health and recovery, we will fight for the uninsured and underinsured coverage you have paid for and deserve.

Michigan Underinsured and Uninsured Drivers

Michigan car accidents can cause serious injuries, resulting in thousands of dollars in medical bills. If you are the victim in a Michigan automobile accident, you will file a claim against the insurance company of the at-fault driver. However, in many accidents the other driver will not have adequate insurance coverage to compensate you for your injuries.

The minimum coverage that a Michigan driver must purchase includes $20,000 in liability coverage for bodily injury or death for one person, $40,000 for more than one person, and $10,000 for property damage. These minimum amounts, however, aren’t always enough to pay for the damage caused in a serious car accident.

In some cases, the Michigan driver who hits you will have NO insurance, even though Michigan law requires all drivers to be insured. In fact, your chances of encountering an uninsured driver are fairly high because drivers often pay one insurance installment in order to get their license plates, then allow the mandatory insurance to lapse.

Using Your Own UM / UIM Coverage

If you are injured in an accident caused by another driver whose coverage isn’t enough to pay for your injuries – or if you are hit by a driver without any insurance at all — you will need an alternative source to help pay for your damages. That’s where your own UM and UIM insurance comes into play.

You can purchase UM coverage from your own insurance company to pay monetary compensation when you are hit by an uninsured driver. If you are hit by an at-fault driver with minimum liability limits, the UIM coverage you purchase will pay, up to your policy limits, for your medical expenses and other damages that exceed the other driver’s liability coverage.

Most insurance companies offer uninsured (UM) coverage, but this coverage is optional. Insurers also offer underinsured (UIM) coverage for an extra cost.

How UM / UIM Coverage Works

While many insurance companies offer UM / UIM coverage, insurance agents often don’t tell their clients about this coverage because it is not a money maker for the insurance companies. In many cases, for only a few more dollars per policy, drivers can increase their UM / UIM coverage to the 250/500 level.

If you are injured by a driver with no insurance, and you have purchased a 250/500 UM / UIM policy, you could recover up to $250,000 under your UM policy. If the at-fault driver carried only the minimum $20,000 in liability coverage, you would need to first exhaust the at-fault driver’s $20,000 limit and then turn to your own UIM coverage to recover the remaining $230,000.

Because no Michigan law requires drivers to carry UM / UIM coverage, the terms of an insurance agreement between a driver and his or her insurance company will control. There are also complex rules when it comes to filing a UM / UIM claim. But an experienced Michigan car accident attorney from Michigan Injury Lawyers can review the terms of your auto insurance policy, including the policy’s UM / UIM provisions. We can also help you prepare an effective claim and negotiate with your car insurer on your behalf.

Help With Your UIM / UM Insurance Case

Michigan Injury Lawyers represents victims and their families who have been seriously injured by uninsured and underinsured motorists. We have helped many victims in Michigan recover what was rightfully theirs. We can help you and your family, too.

Call Michigan Injury Lawyers at 313-438-4357 or e-mail us for an evaluation of your claim. If there is no recovery in your case, there is no fee for our services.