Underinsured Motorist Coverage – What It Is And Why You Need It
As attorneys at Ravid & Associates, P.C., we want to talk to you about a crucial aspect of auto insurance: underinsured motorist coverage. Many drivers in Michigan and beyond think their full-coverage auto insurance is enough to protect them in an accident. However, when it comes to serious injuries caused by an underinsured driver, this assumption can be dangerously wrong.
Underinsured motorist (UIM) coverage steps in when the at-fault driver’s insurance isn’t enough to cover the costs of your injuries or damages. In Michigan, where we deal with no-fault auto insurance laws, the issue of underinsured drivers is particularly relevant. Despite the state’s mandatory insurance laws, many drivers only carry the minimum required liability coverage, which may not be sufficient to compensate you in the event of serious injuries. Having UIM coverage can make all the difference in how well you recover—both physically and financially—from an accident.
What Is Underinsured Motorist Coverage?
Underinsured motorist coverage is designed to protect you if you’re injured in an auto accident and the at-fault driver doesn’t have enough insurance to fully compensate you for your damages. Michigan law requires all drivers to carry a certain level of liability insurance, but those minimums—$50,000 for bodily injury per person and $100,000 per accident—often fall short in cases of severe injuries.
In Michigan, drivers can opt for UIM coverage in varying amounts. We strongly advise our clients to carry this additional coverage because it’s relatively inexpensive compared to the potential financial burden of being involved in an accident with an underinsured driver.
Why You Need Underinsured Motorist Coverage
The unfortunate truth is that many drivers on Michigan roads don’t carry sufficient insurance. The minimum coverage required by law may not be enough to cover serious injuries or the long-term care some individuals need after a traumatic car accident. Medical expenses can quickly escalate, especially if surgeries, rehabilitation, or extended hospital stays are involved.
While Personal Injury Protection (PIP) in Michigan is designed to cover your own medical expenses regardless of who is at fault, it has its limits, especially with the recent changes in Michigan’s auto insurance laws. If your PIP coverage isn’t enough and the other driver is underinsured, you may face significant out-of-pocket expenses without UIM coverage.
Additionally, underinsured motorist coverage can help cover non-economic damages, such as pain and suffering, which are not always covered under Michigan’s no-fault system. This makes UIM coverage particularly important for those who may be dealing with long-term or permanent injuries.
Legal Implications Of Underinsured Motorist Coverage
The legal issues surrounding underinsured motorist claims can be complex, especially in Michigan, where auto insurance laws are already complicated. When you file a claim with your own insurance company under your UIM coverage, you’re essentially entering into a legal dispute with them over how much compensation you’re entitled to.
Michigan law, under MCL 500.3101 et seq., provides the framework for insurance coverage, but negotiating a fair settlement under UIM coverage can be challenging. Insurance companies are in the business of minimizing payouts, even when dealing with their own policyholders. That’s why it’s important to have an experienced attorney on your side who understands Michigan’s insurance laws and can effectively advocate for you.
Filing A Claim For Underinsured Motorist Coverage In Michigan
If you’ve been in an accident with an underinsured driver in Michigan, the first step is to file a claim with your own insurance company under your UIM coverage. However, you should understand that your insurance company may not automatically pay out the full amount you’re owed.
The process of filing a UIM claim involves providing proof of the other driver’s insurance limits and documenting your medical expenses, lost wages, and other damages. You may also need to provide evidence of pain and suffering if you’re seeking compensation for non-economic damages.
Insurance companies often try to settle UIM claims for less than what’s fair. They may argue that your injuries aren’t as severe as you claim or that your medical expenses are excessive. That’s why it’s essential to have an attorney who understands the tactics insurance companies use and can push back on lowball settlement offers.
At Ravid & Associates, P.C., we handle all aspects of your UIM claim, from dealing with the insurance company to collecting evidence and negotiating a fair settlement. We work to ensure that you aren’t left footing the bill for an accident that wasn’t your fault.
The Statutory Limits And Legal Precedents In Michigan
Under Michigan law, UIM coverage is not mandatory, but we highly recommend it due to the financial risks posed by underinsured drivers. According to MCL 500.3135, a person injured in an auto accident can pursue a lawsuit against the at-fault driver for non-economic damages if they meet certain criteria, such as sustaining a serious impairment of body function or permanent disfigurement. However, the reality is that many underinsured drivers may not have the financial resources to pay a significant judgment.
Michigan case law has also established important precedents in UIM claims. For example, in Kozak v. Detroit Auto. Inter-Insurance Exch. (1997), the Michigan Court of Appeals ruled that insurance companies are obligated to pay UIM benefits when the policyholder meets the conditions outlined in their policy, including proving the at-fault driver was underinsured. However, insurance companies often challenge the amount of damages, leading to prolonged legal battles.
By having an experienced attorney handle your UIM claim, you can ensure that your rights are protected and that you have the best chance of securing the compensation you deserve.
Faqs About Underinsured Motorist Coverage
What Does Underinsured Motorist Coverage Pay For?
Underinsured motorist coverage helps pay for your medical bills, lost wages, and other damages if the at-fault driver doesn’t have enough insurance to fully compensate you. It can also cover non-economic damages like pain and suffering, which are not always covered under Michigan’s no-fault system.
Is Underinsured Motorist Coverage Required In Michigan?
No, Michigan law does not require drivers to carry underinsured motorist coverage. However, given the number of drivers with minimal insurance, we strongly recommend it as an added layer of protection.
How Much “Underinsured Motorist Coverage” Should I Carry?
The amount of UIM coverage you should carry depends on your individual circumstances. We generally advise our clients to carry as much coverage as they can afford, as the cost of a serious injury can quickly exceed the minimum liability limits of many drivers.
What Is The Difference Between Uninsured And Underinsured Motorist Coverage?
Uninsured motorist coverage applies when the at-fault driver has no insurance at all, while underinsured motorist coverage applies when the at-fault driver has insurance but it’s not enough to fully compensate you for your injuries or damages.
Can I Still File A Lawsuit If I Have Underinsured Motorist Coverage?
Yes, you can file a lawsuit against the at-fault driver, but if they don’t have enough insurance or personal assets, recovering the full amount of your damages may be difficult. This is why underinsured motorist coverage is so important—it helps fill the gap.
Call Our Detroit Underinsured Driver Accident Attorney To Receive A Free Consultation
We offer free consultations to discuss your case and help you understand your rights under Michigan law. Contact our Detroit underinsured driver accident attorney at Ravid & Associates, P.C. by calling (248) 948-9696 to receive your free consultation. We represent injury victims in Detroit and throughout the state of Michigan. We are ready to help you through this challenging time. Don’t let an underinsured driver leave you facing a mountain of bills. Contact Ravid & Associates, P.C., and let us help you get the compensation you need to recover fully.
