Key Takeaways
- Many Michigan drivers either do not have car insurance or do not have enough insurance to cover serious injuries if they are at fault in an accident.
- Uninsured and underinsured motorist coverage lets you recover damages when the at-fault party has no insurance, has insufficient coverage, or flees the scene.
- Michigan law does not require UIM coverage, but it is essential if you are in an accident caused by an uninsured or underinsured driver. Health insurance will not be enough to cover your damages.
Nearly 20% of Michigan drivers are driving without auto insurance. Many of Michigan’s insured drivers do not have enough insurance to cover damages if they cause a car accident that causes serious injuries. If you are the one who gets hurt, there is more than a one-in-five chance that an uninsured or underinsured driver will not have coverage to pay for your medical bills and other expenses. Fortunately, Michigan offers special insurance to protect you when you need it most. An experienced Michigan personal injury attorney can help you learn about your options after an auto accident with an uninsured or underinsured motorist.
Protect Yourself After an Accident With an Underinsured Driver
If an uninsured or underinsured motorist injured you in an auto accident, you may still be able to collect compensation to cover economic damages. Matz Injury Law’s team of car accident attorneys is here to help you with your injury claim. We can guide you through the often complex process of claiming damages from your car insurance policy or the at-fault driver’s insurance.
Going up against insurance companies can be difficult and may require professional assistance from a car accident attorney. To speak with an experienced personal injury lawyer in Michigan, use our contact page or call 866-226-6833 today.
What is No-Fault Insurance?
Michigan is a no-fault insurance state. This means that regardless of who is at fault, any Michigan resident injured in an automobile crash in the United States is entitled to certain benefits.
Those benefits include:
- Lifetime medical care and support services
- 85% of your lost wages up to the maximum that year
- As of September 2023, the maximum is $6,811 per month.
- Replacement services (help around the house), up to $20 per day
- Mileage reimbursement for travel to and from your healthcare providers
- Attendant care (in-home nursing)
- Home modification and specialized transport vehicles for the catastrophically injured
As of July 2020, Michigan residents can limit the allowable expenses (medical care and attendant care) the insurance company must provide. Unlimited coverage is still available, but it is now possible to limit coverage to $500,000, $250,000, and, under some circumstances, $50,000 or $0.
Types of Accidents Where You Can Make an Underinsured or Uninsured Motorist Claim
There are multiple auto accident scenarios where you can make an uninsured or underinsured motorist claim. Examples include the following:
- A hit-and-run driver flees the scene after the accident. You must file an uninsured motorist claim if you cannot identify the at-fault driver.
- Another driver causes an accident and either has no insurance information or has coverage with policy limits that will not cover your damages. This often happens when an at-fault party has the minimum coverage under Michigan’s insurance requirements.
- You are a passenger in an accident caused by an uninsured or underinsured driver.
- You are a pedestrian, and an uninsured or underinsured driver negligently hits you.
Uninsured motorist coverage and underinsured motorist coverage are not required by law in Michigan.
- Uninsured motorist coverage is an optional benefit you can buy when you purchase your car, truck, or motorcycle insurance in Michigan. This coverage will protect you if you or your passengers are injured in a crash that is not your fault and the at-fault driver does not have insurance.
- Underinsured motorist coverage is a similar optional coverage that you can purchase to protect you from situations where the at-fault driver has insurance but doesn’t have enough to fully cover the value of your injuries.
While UIM coverage is optional, we heavily recommend it. Compared to the other items you paid for, uninsured motorist coverage is not very expensive. You should buy as much of it as you can.
How Common Is It For a Motorist to be Uninsured in Michigan
Many Michigan drivers drive without automobile insurance; we estimate 20% statewide and more in the big cities. It is possible to buy insurance at some agencies, where only a down payment is necessary to get coverage for a few weeks. Someone who thinks they can “beat the system” can buy coverage for just a short time — just long enough to get a license plate and registration — and then can let the insurance lapse (expire) without paying again.
People like this are doubly dangerous. Not only are they violating the law by not having insurance and not paying into the system the rest of us rely upon for coverage, but they also tend to get into more frequent accidents because they have little regard for laws we all know we are supposed to follow. In fact, a person who has a history of causing accidents finds it very expensive to buy insurance. If they have convictions such as drinking and driving, they lose their license and can’t get insurance even if they can afford it. That doesn’t stop them from driving but prevents them from driving with insurance.
What Happens if the Person at Fault in an Accident is Underinsured in Michigan?
Uninsured and underinsured motorist coverage protects you if an uninsured or underinsured driver crashes into you and seriously injures you. It may even turn out that the vehicle that hit you was stolen and was fleeing from the police. There is no liability coverage there!
If you took the precaution of buying uninsured motorist coverage, you can apply it to your own policy if you get involved in an accident with an uninsured driver. Check your policy for details. This coverage is indicated on your declaration page (the sheet that tells you what coverages you have, how much you bought, and how much it costs you).
The same is true of underinsured motorist coverage. This coverage kicks in if somebody causes serious injury to your passengers or you in a collision, just like uninsured benefits do. The difference is that underinsured coverage applies over and above the other driver’s coverage. When you consider that the minimum liability coverage (that’s the “PL” in PL/PD) that we have to carry in Michigan is only $50,000, you can see that this isn’t going to go very far if you are severely injured.
Receiving Underinsured Motorist Credit
Your underinsured motorist coverage gets a “credit” for the amount of coverage the other driver has. Over and above that, you and your lawyer get to fight with your insurance company over how much underinsured motorist coverage you should get. You don’t automatically get anything — you must prove that the other driver was (mostly) at fault and that your injuries are serious. Insurance companies often fight underinsured motorist claims just as hard as the other driver would have because they know that you can still be at fault for an accident and not have to pay the victims anything if they weren’t seriously hurt (as defined by Michigan law).
The individual policy you have with your insurance company defines both your uninsured and underinsured benefits. Do not assume you are covered or not covered by these optional benefits. Have an attorney who practices auto law in Michigan review your policy and every auto policy in your household! Do not sign any agreements to settle any part of your case until you have a lawyer investigate the situation.
Remember: passengers of cars hit by uninsured drivers may qualify for benefits from the car they were in, even if the passenger didn’t have car insurance.
Do Insurance Companies Go After Uninsured Drivers?
Yes, insurance companies often go after uninsured drivers. Insurance companies may use a legal process known as “subrogation” to recover amounts paid under uninsured or underinsured motorist coverage. This includes bodily injury coverage and collision coverage.
Related Resources
Please see the following related resources for more information about auto accident claims.
- Related Resource: Michigan No-Fault Laws and Most Common Questions Answered
- Related Resource: 2024 Guide to Michigan Car Accident Lawsuits
Why Clients Partner With Matz Injury Law
The car accident attorneys at Matz Injury Law have decades of experience helping Michigan car accident victims recover damages for medical expenses and other losses. We listen to our clients and work to create custom solutions for them. Recent successes include:
- A $3.45 million settlement for a truck accident in Genesee County, which exceeded the available insurance coverage by $450,000
- The client kept an additional $390,000 with Matz Injury Law’s “22, not 33” promise.
- A $4.15 million settlement collected from three insurance companies for a Washtenaw County motorcycle accident and wrongful death claim
- The client kept an additional $470,195 with Matz Injury Law’s “22, not 33” promise.
- A $1.3 million settlement in a federal lawsuit involving a Monroe County auto accident
- The client kept an additional $147,200 with Matz Injury Law’s “22, not 33” promise.
Learn about how you can keep more money with Matz’s “22, not 33” promise.
Testimonials
“My family is grateful for Steve Matz’s professional handling of our case. Steve was very thorough, candid, responsive, and strategic in his approach throughout our legal proceedings. If ever in a situation again like my family has experienced over the past year, we would immediately retain Matz Injury Law to represent our interests. Thank you Steve.” – John P.
“I highly recommend Mr. Matz’s services. He is very knowledgeable, professional, and listens to his client’s concerns. Definitely would use his services again.” – Dean S.
“Matz Injury Law was the best decision I have made. Steve has been so helpful through this whole process and always there for me and my husband. He made everything quick and easy! I would highly recommend Matz Injury Law.” – Linda N.
Frequently Asked Questions
Please don’t be an uninsured driver yourself. Even if you think that you have nothing to lose if somebody sues you, remember that uninsured drivers are also disqualified from the Michigan no-fault system. That means uninsured drivers cannot sue the other driver for pain and suffering even if the other driver was at fault. Uninsured drivers can make no claim against the other driver for collision damage and cannot claim medical or wage loss benefits, either (because these were supposed to come from the insurance they should have bought).
Protect yourself by having a generous amount of uninsured and underinsured motorist coverage on your Michigan auto policy. The chances of being injured by a careless driver go up every time you get behind the wheel, and the chances that a reckless driver doesn’t care if you get hurt are even higher.
You can sue an uninsured driver if your case meets the no-fault law’s requirements. You will be unlikely to get anything, though. If an at-fault driver has no insurance, they probably have few or no assets you could pursue.
Yes. Uninsured motorist coverage is different from health insurance in several important ways:
- You might lose your health insurance benefits if you lose your job.
- Health insurance will not cover certain damages that auto insurance covers, such as lost wages.
Personal injury protection coverage can start covering medical expenses related to your accident almost immediately. Health insurance might wait until you hit your deductible.
Yes. Uninsured and underinsured motorist coverage would cover the pain and suffering damages you could have recovered from the at-fault driver if they had enough insurance.
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