Being seriously injured by another driver is difficult enough. The situation can become even more complicated when the driver who caused the accident has no usable liability insurance or not enough insurance to compensate you for your injuries.
Uninsured motorist (UM) and underinsured motorist (UIM) coverage may provide an additional source of compensation in these situations. Unlike Michigan Personal Injury Protection benefits, however, UM and UIM coverage are optional insurance coverages, and the terms of the actual insurance policy can significantly affect whether a claim is available.
A Michigan uninsured and underinsured motorist lawyer at Khamo Law can review the accident, available liability coverage, your own insurance policies, applicable UM/UIM limits, and policy requirements to determine what sources of recovery may be available.
For a broader explanation of claims against negligent drivers after a Michigan crash, visit our Michigan Car Accident Attorney resource.
What Is Uninsured Motorist Coverage in Michigan?
Uninsured motorist coverage, commonly called UM coverage, is optional automobile insurance that may provide benefits when an insured person is injured by an at-fault motorist who does not have applicable liability insurance.
The exact circumstances covered depend on the insurance contract.
UM coverage can become particularly important when a negligent driver causes serious injuries but has no liability insurance available to compensate the injured person.
Michigan’s Department of Insurance and Financial Services identifies uninsured and underinsured motorist coverage as optional coverage that Michigan consumers may purchase in addition to required automobile insurance.
What Is Underinsured Motorist Coverage?
Underinsured motorist coverage, or UIM coverage, may apply when the at-fault driver has liability insurance, but the available liability limits are insufficient under the terms of the injured person’s UIM policy.
For example, a person could suffer substantial injuries in a collision while the negligent driver’s available bodily-injury liability coverage is significantly lower than the value of the resulting damages.
Depending on the policy, UIM coverage may provide another potential source of recovery after the applicable liability coverage is addressed.
But UIM coverage does not automatically pay simply because damages exceed the other driver’s insurance.
The language of the UIM policy matters.
What Is the Difference Between UM and UIM Coverage?
The basic distinction is:
Uninsured Motorist (UM): The at-fault motorist does not have applicable liability insurance.
Underinsured Motorist (UIM): The at-fault motorist has liability insurance, but the available coverage is insufficient under the terms of the injured person’s UIM policy.
Both coverages are designed to address situations in which the negligent driver’s insurance does not provide an adequate source of compensation.
However, eligibility, limits, exclusions, notice provisions, definitions, offsets, consent requirements, and other conditions can differ from one policy to another.
Is Uninsured Motorist Coverage Required in Michigan?
No.
Michigan DIFS identifies uninsured and underinsured motorist coverage as optional automobile insurance coverage.
That means drivers should not assume they automatically have UM or UIM protection simply because they purchased a Michigan No-Fault auto policy.
The declarations page and complete policy should be reviewed to determine:
- Whether UM coverage exists
- Whether UIM coverage exists
- The applicable limits
- Who qualifies as an insured
- Which vehicles are covered
- What conditions apply
- What exclusions apply
This distinction becomes especially important after a serious accident involving an uninsured driver.
Is UM/UIM the Same as Michigan No-Fault PIP?
No.
Michigan No-Fault PIP and UM/UIM coverage serve different purposes.
PIP can provide first-party benefits associated with an injured person’s own accident-related losses, subject to Michigan law and the applicable coverage.
Those benefits may include qualifying:
- Medical expenses
- Wage loss
- Replacement services
- Attendant care
- Medical transportation
- Other PIP losses
UM/UIM coverage, by contrast, generally concerns compensation arising from the fault of an uninsured or underinsured motorist under the terms of the insurance contract.
A seriously injured person may therefore have multiple insurance claims arising from the same crash.
For more information about first-party benefits, visit our Michigan No-Fault Insurance Lawyer guide.
What Happens If the Driver Who Hit Me Has No Insurance?
Do not assume that there is no potential recovery simply because the negligent driver is uninsured.
The available options depend on the circumstances.
Potential sources may include:
- Your own uninsured motorist coverage
- UM coverage available under another applicable policy
- Michigan PIP benefits
- Claims against legally responsible parties
- Other applicable insurance coverage
Determining whether UM coverage exists should be done early because the policy may contain specific notice and claim requirements.
What Happens If the Other Driver Doesn’t Have Enough Insurance?
This is where underinsured motorist coverage may become important.
Suppose another driver causes a serious crash and has bodily-injury liability insurance, but the injuries and damages substantially exceed the available liability coverage.
If applicable UIM coverage exists, the injured person may potentially pursue an additional claim under that coverage.
However, the UIM policy should be reviewed before resolving the liability claim with the at-fault driver or that driver’s insurer.
Be Careful Before Settling With an Underinsured Driver
This is one of the most important issues in a potential UIM case.
Some underinsured motorist policies contain consent-to-settle provisions or other requirements governing settlement with the at-fault driver.
Michigan appellate decisions demonstrate that UIM policies can contain provisions requiring the insured to obtain the UIM insurer’s consent before resolving the underlying bodily-injury claim.
Therefore, accepting an at-fault driver’s policy limits and signing a release without first reviewing the UIM policy can create serious problems for a later UIM claim.
The policy should be examined before a settlement is finalized.
Does UM Coverage Apply to Hit-and-Run Accidents?
It may, depending on the policy.
A hit-and-run accident creates a unique problem because the negligent driver may never be identified.
Some uninsured motorist policies contain provisions addressing accidents involving unidentified or “hit-and-run” vehicles. The exact definition and requirements are determined by the policy.
Anyone injured in a hit-and-run crash should:
- Report the collision promptly
- Preserve photographs and video
- Identify witnesses
- Look for nearby surveillance footage
- Preserve insurance communications
- Review applicable UM coverage
Our Michigan Hit-and-Run Accident Lawyer page explains these crashes in greater detail.
What If There Was No Physical Contact With the Hit-and-Run Vehicle?
Do not assume coverage either exists or does not exist without reading the policy.
UM policies can define unidentified vehicles and hit-and-run accidents differently.
For example, disputes may involve whether physical contact is required, what evidence must corroborate the accident, and whether the circumstances satisfy the policy’s definition of an uninsured vehicle.
Because UM/UIM coverage is contractual, the actual policy language should be reviewed rather than relying on a general rule taken from another insurance company’s policy.
Who Can Be Covered by a UM/UIM Policy?
Coverage depends on the contract.
Depending on the policy language, coverage may extend to categories such as:
- The named insured
- A spouse
- Resident relatives
- Occupants of an insured vehicle
- Other people qualifying under the policy definition of an insured
Coverage disputes can arise when the injured person was occupying a vehicle not listed on the policy, recently moved households, owns another vehicle, or has access to multiple insurance policies.
The declarations page alone may not answer every question.
The complete policy should be reviewed.
How Much UM/UIM Coverage Is Available?
The amount depends on the policy purchased.
DIFS explains that Michigan consumers may choose whether to purchase UM/UIM coverage and may purchase different coverage limits.
After an accident, relevant documents can include:
- Insurance declarations pages
- The complete insurance policy
- Policy endorsements
- Renewal documents
- Coverage-selection records
- Other potentially applicable household policies
Do not assume the amount of UM/UIM coverage based solely on the liability limits shown elsewhere in the policy.
Can More Than One UM/UIM Policy Apply?
Potentially.
A serious accident may require examination of more than one insurance policy.
Possible issues include:
- The injured person’s own policy
- Household policies
- Coverage on the occupied vehicle
- Employer-related vehicle coverage
- Commercial policies
- Other policies potentially defining the injured person as an insured
Whether multiple coverages can apply—and how they interact—depends heavily on the language of the applicable contracts.
Policy provisions may address priority, other insurance, offsets, anti-stacking provisions, or other limitations.
What Is “Stacking” UM/UIM Coverage?
Stacking generally refers to combining coverage limits from multiple vehicles or policies to increase the total available coverage.
Whether stacking is permitted in a particular Michigan UM/UIM claim depends on the applicable policy language and circumstances.
Policies can contain provisions limiting or prohibiting the combination of limits.
For that reason, the existence of several insured vehicles does not automatically mean all UM/UIM limits can be added together.
What Damages Can a UM/UIM Claim Involve?
The answer depends on the policy and underlying legal claim.
UM/UIM coverage generally addresses damages the insured may be legally entitled to recover because of injuries caused by an uninsured or underinsured motorist, subject to the insurance contract.
A serious injury claim may involve damages associated with:
- Physical injuries
- Pain and suffering
- Disability
- Loss of normal life activities
- Scarring or disfigurement
- Economic losses not otherwise compensated
- Other qualifying damages
The underlying accident still matters.
The claimant generally must establish the liability and damages necessary under the applicable policy and Michigan law.
Do I Still Need to Prove the Other Driver Was at Fault?
UM/UIM coverage does not necessarily eliminate the underlying liability dispute.
An insurer may dispute:
- Who caused the accident
- Whether its insured was partially at fault
- Whether the uninsured vehicle was involved
- Whether the injuries resulted from the collision
- The severity of the injuries
- The amount of damages
- Whether the policy covers the accident
Evidence establishing how the crash occurred therefore remains important.
What Evidence Is Important in a UM/UIM Claim?
Useful evidence may include:
- Police reports
- Crash photographs
- Vehicle photographs
- Dash-camera footage
- Surveillance footage
- Witness statements
- Medical records
- Diagnostic imaging
- Employment records
- Insurance policies
- Coverage letters
- Correspondence with insurers
- Evidence concerning the at-fault driver’s insurance
Serious UM/UIM claims can involve both a liability investigation and an insurance-coverage investigation.
What If the Insurance Company Disputes My UM/UIM Claim?
A UM/UIM insurer may raise issues involving either the accident itself or the insurance contract.
Disputes can concern:
- Fault
- Injury causation
- Damages
- Whether the other vehicle qualifies as uninsured or underinsured
- Whether the claimant qualifies as an insured
- Notice
- Consent to settlement
- Policy exclusions
- Coverage limits
- Other available insurance
- Compliance with policy conditions
The reason for the insurer’s position should be identified before determining how the claim should proceed.
UM/UIM Claims and Michigan No-Fault Claims Can Exist Together
One of the easiest points to misunderstand is that a UM/UIM claim does not simply replace a PIP claim.
The claims can address different losses.
For example, an injured person may pursue applicable Michigan No-Fault benefits for accident-related medical treatment or wage loss while separately investigating a UM or UIM claim arising from the negligent driver’s lack of adequate liability insurance.
Our related resources explain Michigan wage loss benefits and Michigan medical mileage reimbursement in greater detail.
What Should You Do After an Accident With an Uninsured or Underinsured Driver?
After obtaining appropriate medical care:
- Report the collision.
- Obtain the police report.
- Preserve photographs and video.
- Identify witnesses.
- Gather the other driver’s insurance information.
- Notify appropriate insurers.
- Obtain copies of your insurance declarations.
- Preserve the complete policy and endorsements.
- Document your injuries and treatment.
- Do not assume the other driver’s stated insurance limits are the only available coverage.
- Review potential UM/UIM coverage before signing a settlement or release.
- Preserve all insurance correspondence.
The insurance investigation can be just as important as the accident investigation.
Frequently Asked Questions About Michigan UM/UIM Coverage
Is uninsured motorist coverage mandatory in Michigan?
No. Michigan DIFS identifies uninsured motorist coverage as optional automobile insurance coverage.
Is underinsured motorist coverage mandatory?
No. UIM coverage is also optional.
What is the difference between UM and UIM?
UM generally concerns an at-fault motorist without applicable liability insurance. UIM generally concerns an at-fault motorist whose available liability coverage is insufficient under the applicable UIM policy.
Is UM/UIM the same thing as PIP?
No. Michigan PIP and UM/UIM coverage address different types of insurance benefits and claims.
Can uninsured motorist coverage apply to a hit-and-run?
Potentially. Whether a hit-and-run or unidentified vehicle qualifies depends on the language and requirements of the particular UM policy.
Should I accept the other driver’s policy limits before making a UIM claim?
The UIM policy should be reviewed first. Some policies contain consent-to-settle provisions or other requirements that can affect the UIM claim.
Can I have a PIP claim and a UIM claim?
Potentially, yes. The coverages serve different purposes and can arise from the same accident.
Does UIM automatically pay whenever my damages exceed the other driver’s limits?
No. Coverage depends on the policy language, the applicable definition of an underinsured vehicle, liability, damages, limits, exclusions, and other policy requirements.
Can several UM/UIM policies apply?
Potentially. Whether more than one policy or limit applies requires review of the applicable insurance contracts.
How Khamo Law Can Help With a Michigan UM/UIM Claim
Uninsured and underinsured motorist cases can involve two investigations at the same time: determining who caused the collision and determining which insurance coverage applies.
Khamo Law can review:
- The accident
- Fault and liability
- The at-fault driver’s insurance
- Your insurance policies
- Household policies
- UM/UIM endorsements
- Policy limits
- Hit-and-run provisions
- Consent-to-settle requirements
- Other-insurance provisions
- Medical evidence
- Damages
- Michigan No-Fault benefits
- Other potential sources of recovery
The goal is to identify available coverage before an important insurance right is unintentionally lost.
Contact a Michigan Uninsured & Underinsured Motorist Lawyer
If you were seriously injured by a driver who has no insurance or insufficient insurance, Khamo Law can review the accident and available insurance coverage.
Call (248) 466-0606 or contact Khamo Law for a free consultation.