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Uninsured/Underinsured Motorist Insurance Coverage

An automobile accident is stressful enough. However, if you discover that the at-fault driver has an inadequate policy or doesn’t have insurance at all, you may feel as if you have no options. Your no-fault insurance may cover your medical bills, but what about the ongoing pain and suffering you experience after the accident?

Even if you have all of the insurance coverage that Michigan requires, you may not have enough to pay for an accident caused by an uninsured or underinsured driver. Our expert agents at Encore Insurance Group created this guide to help you better understand uninsured motorist coverage in Michigan. For more information or to schedule a consultation, please call us at 248-466-0200.

Car Insurance Laws in Michigan

Michigan incorporated its original no-fault insurance law in 1973. Nearly five decades later, the state revised the policy in 2019 to make no-fault insurance a requirement for all licensed drivers in Michigan.

No-fault insurance guarantees that both drivers receive the coverage, care, and reimbursements they need following an accident, no matter who caused the collision. That said, studies show that more than 25% of all drivers in Michigan do not have adequate insurance coverage, making uninsured motorist insurance a necessity.

What is Uninsured/Underinsured Motorist Insurance in Michigan?

Uninsured motorist coverage provides an extra layer of legal protection and recovery for Michigan drivers following an accident with an uninsured driver. Michigan law defines uninsured drivers as having an inadequate insurance policy or not carrying the state-required no-fault insurance coverage.

If you sustain an injury due to a collision with an uninsured driver, your no-fault insurance policy will cover a variety of costs, including:

  •       Medical bills
  •       Lost wages
  •       In-home care
  •       Home maintenance services

However, your no-fault insurance does not apply to vehicle damage or excess personal injury protection (PIP) benefits, as defined by the state insurance law.

Do I Need Uninsured Motorist Coverage in Michigan?

Nearly two million drivers navigate Michigan’s roads each day without adequate automobile insurance. With this in mind, our agents at Encore Insurance Group strongly recommend purchasing uninsured motorist coverage in Michigan.

Without uninsured motorist coverage, you and your family may not have the protection you need to recover both economic and non-economic losses, such as:

  •         Property damage
  •         Ongoing pain and suffering
  •         Additional PIP benefits

How Does Uninsured Motorist Insurance Work?

Your uninsured motorist coverage works similarly to your Michigan no-fault insurance policy. If you sustain an injury following an accident caused by an uninsured driver, you can file a claim with your automobile insurance company.

Your insurance company will then reimburse you for the economic and non-economic losses you would have otherwise recovered from the driver if they carried sufficient insurance (subject to the terms, conditions, and limitations of your specific policy). Simply put, your insurance company will fulfill the obligations of the uninsured driver and ensure that you and your family receive the care and protection you need.

Depending on the circumstances of the accident and your uninsured motorist insurance policy, you may also need to file a lawsuit against the uninsured driver to satisfy your insurer. 

Underinsured/Uninsured Motorist in Michigan: Insurance Policy Coverage

Your uninsured motorist coverage ensures that you’re protected against pain, suffering, and property damage caused by a negligent, uninsured driver. With this in mind, your uninsured/underinsured insurance will cover costs that the at-fault driver should have paid, as well as additional PIP benefits, including:

  •       Vehicle damage
  •       Property damage
  •       Bodily injury
  •       Medical costs
  •       Rental car expenses
  •       Collision deductibles

Uninsured/Underinsured Motorist Coverage From Encore Insurance Group

Navigating the fallout of an automobile accident can take years and cost you and your family hundreds of thousands of dollars, especially if you don’t have adequate uninsured or underinsured motorist insurance. Rather than hoping for the best, contact our compassionate, knowledgeable staff at Encore Insurance Group.

We’ll work with you to create a customized plan that suits your needs, budget, and coverage preferences. For more information or to schedule a consultation with an Encore Insurance agent, please contact us today through our website or by calling 248-466-0200.