What Is Uninsured Motorist Coverage?
Uninsured motorist (UM) coverage is an optional type of auto insurance that provides financial protection when you are injured in an accident caused by a driver who carries no liability insurance. A related coverage, underinsured motorist (UIM) coverage, applies when the at-fault driver has insurance but the policy limits are too low to cover the full extent of your damages. Together, UM/UIM coverage fills the gap left by the other driver’s absent or insufficient insurance.
Is Uninsured Motorist Coverage Required in Michigan?
Under MCL 500.3163, Michigan law requires auto insurers to offer uninsured motorist coverage to every policyholder, but policyholders are not required to purchase it. A Michigan driver may decline UM/UIM coverage in writing. This is an important distinction: Michigan mandates that the coverage be made available, but it does not mandate that every policy include it.
Because UM/UIM coverage is optional, many Michigan drivers unknowingly go without this protection. Checking your policy to confirm whether you elected or declined this coverage is a critical step, especially after an accident with an uninsured driver.
UM vs. UIM Coverage: Key Differences
- Uninsured motorist (UM) coverage applies when the at-fault driver has no auto liability insurance at all, or in hit-and-run situations where the responsible driver cannot be identified.
- Underinsured motorist (UIM) coverage applies when the at-fault driver does have liability insurance, but the policy limits are not enough to pay for the full extent of your injuries and losses.
Both coverages typically pay for medical expenses, lost wages, and pain and suffering damages that exceed what is available from other sources.
How UM/UIM Coverage Interacts with Michigan No-Fault PIP
Michigan operates under a no-fault insurance system, meaning your own auto insurance policy provides Personal Injury Protection (PIP) benefits regardless of who caused the accident. PIP covers medical expenses, attendant care, lost wages (up to policy limits), and other economic losses.
UM/UIM coverage serves a different purpose. While PIP handles your economic losses on a first-party, no-fault basis, UM/UIM coverage allows you to pursue non-economic damages such as pain and suffering from your own insurer when the at-fault driver is uninsured or underinsured. In this way, UM/UIM coverage functions as a substitute for the liability coverage the other driver should have carried.
What PIP Covers vs. What UM/UIM Covers
- PIP benefits: Medical expenses, wage loss benefits, replacement services, and funeral expenses — available regardless of fault
- UM/UIM benefits: Pain and suffering, excess economic damages beyond PIP limits, and other tort-based damages — available only when an uninsured or underinsured at-fault driver caused the accident
Mini-Tort Claims in Michigan
Michigan’s mini-tort provision (MCL 500.3135(3)(e)) allows drivers to recover up to $3,000 in vehicle damage from the at-fault driver (or that driver’s insurer). This limited property damage claim exists alongside the no-fault system. When the at-fault driver is uninsured, UM coverage may also help cover vehicle damage that the mini-tort claim cannot recover.
Steps to Take After an Accident with an Uninsured Driver
If you are involved in a motor vehicle accident and discover the other driver has no insurance, the following steps can help protect your rights:
- Call the police and obtain an official accident report documenting the other driver’s lack of insurance.
- Seek medical attention immediately, even if injuries seem minor. Document all treatment.
- Notify your own insurance company promptly. Report the accident and ask about your PIP benefits and any UM/UIM coverage on your policy.
- Gather evidence at the scene: photographs, witness contact information, and the other driver’s identification.
- Consult an attorney to understand your options for recovering non-economic damages such as pain and suffering through your UM/UIM policy or a direct lawsuit against the uninsured driver.
Why UM/UIM Coverage Matters in Michigan
According to industry estimates, a significant percentage of Michigan drivers operate vehicles without adequate insurance. When one of those drivers causes an auto accident, victims who lack UM/UIM coverage may have limited options for recovering pain and suffering damages beyond their PIP benefits. Purchasing UM/UIM coverage adds a layer of protection that can make a meaningful difference in your ability to recover fully after a serious accident.
If you have questions about uninsured motorist coverage or need help with a claim involving an uninsured driver, contact The Joseph Dedvukaj Firm for a free consultation at 1-866-HIRE-JOE.