A Dangerous Gamble
Michigan law requires every driver to have insurance. But the reality on the road is very different. In some parts of Michigan, it is estimated that 20% to 50% of drivers are driving without valid insurance, or with the bare minimum coverage required by law.
Imagine this scenario: You are stopped at a red light. A driver rear-ends you at 40 mph. You suffer a herniated disc requiring surgery and months off work. You find out the at-fault driver has no insurance and no assets. They are "judgment proof."
If you don't have Uninsured Motorist (UM) coverage, you generally cannot sue for your pain and suffering. You are stuck.
What is UM and UIM?
These are optional coverages that you buy to protect yourself, not other people.
- Uninsured Motorist (UM): This kicks in when the at-fault driver has NO insurance (or it’s a hit-and-run driver who is never found). Your own insurance company steps into the shoes of the bad driver and pays you the settlement you would have won from them.
- Underinsured Motorist (UIM): This applies when the at-fault driver has insurance, but their limits are too low to cover your injuries. For example, if your case is worth $100,000, but the other driver only has the state minimum $50,000 policy, UIM pays the difference.
The "Optional" Trap
Because Michigan is a No-Fault state, many people assume their own insurance covers everything. This is wrong. Your Personal Injury Protection (PIP) covers medical bills and lost wages for up to 3 years. But PIP does not pay for:
- Pain and suffering.
- Loss of enjoyment of life.
- Excess wage loss beyond the statutory max.
Those damages must come from the at-fault driver. If they are broke and uninsured, UM coverage is your only route to justice.
Pitfalls to Avoid
Filing a UM/UIM claim puts you in an adversarial position with your own insurance company. Suddenly, the company you've paid premiums to for years starts acting like the defense. They might argue you weren't really hurt, or that the accident was your fault.
Furthermore, most policies have strict Notice Provisions. For example, in a hit-and-run case, some policies require you to file a police report within 24 hours and notify the insurance company within 30 days. If you miss these deadlines, you lose the coverage.
At Shiraz Law Firm, we review your Declarations Page immediately. We find the coverage you didn't know you had, and we hold your insurance company to their contract. Check your policy today, if you don't see "UM/UIM" on it, call your agent immediately. It is the cheapest and most vital protection you can buy.
