Understanding a Michigan UM and UIM Claim

Insurance industry experts estimate that over 20% of Michigan drivers do not have automobile insurance. In metropolitan areas like Detroit, the numbers are even higher. If an uninsured driver hits you, your Uninsured / Underinsured Motorist (UM / UIM) insurance coverage may be the only way you can receive compensation for your injuries.

What Is Uninsured and Underinsured Motorist Coverage?

As a general rule, Michigan drivers are required by law to purchase an automobile insurance policy that provides at least $250,000 in liability insurance coverage. Sometimes it can be as low as $50,000.

After a Michigan car accident, an injured person is entitled to recover no-fault Personal Injury Protection (PIP) benefits from their own insurance carrier, regardless of who caused the accident. In addition, an injury victim can bring a claim against the at-fault driver for damages that exceed the statutory cap on PIP benefits.

If you were hit by a driver who does not have insurance or who does not have adequate insurance to cover the full extent of your injuries, you can turn to your own insurance carrier to pay what you would have recovered from the other driver.

Uninsured Motorist Coverage (UM)

If the driver who hit you has no insurance, your uninsured motorist coverage applies and you can submit a claim to your insurance carrier, who will “stand in the shoes” of the other driver and pay your claim for damages, up to the limit of your UM / UIM insurance policy.

Underinsured Motorist Coverage (UIM)

Underinsured motorist insurance applies when the driver who hit you has insurance, but it is insufficient to cover the full extent of your claim. Underinsured motorist insurance provides coverage for the portion of your claim that is beyond the policy limits of the other driver’s insurance policy.

Suppose you were involved in a car accident incur $275,000 in damages. The other driver has a state-minimum insurance policy that provides $250,000 in insurance coverage. Once the other driver’s insurance company agrees to pay the full $250,000 policy limits, you can make a claim under your underinsured motorist coverage to make up the $25,000 difference.

What Are Insurance Policy Limits?

Insurance policy limits, also known as the coverage amount, are the maximum amount an insurance company will pay on a claim. When you purchase an insurance policy, you can select the amount of coverage you wish to buy. Higher coverage amounts cost more. To save money, some drivers elect either not to purchase insurance at all or to purchase a minimum-limits insurance policy.

Making a Claim Under Your UM / UIM Insurance Coverage

After a car accident, it can take time to determine the extent of your injuries, the value of your claim, and the limits of the other driver’s insurance coverage.

The personal injury lawyers at Muth Law, P.C. will analyze your situation to determine the extent of your injuries and the financial compensation you are entitled to receive. Once we determine: (1) whether the other driver was insured; (2) the limits of the other driver’s insurance policy; and (3) that the value of your claim is more than the policy limits of the other driver’s insurance policy, we will submit the claim to your UM / UIM insurance carrier and work with them to negotiate a full and fair resolution to your claim.

Muth Law, P.C. Will Maximize Your Financial Recovery After a Car Accident

Recovering full compensation after a car accident is an uphill battle. It is made even more difficult when the at-fault driver is uninsured or does not have sufficient automobile insurance coverage to pay for the full extent of your loss.

When you work with Muth Law, we will help you understand the insurance claims process and will fight to recover full and fair compensation for your injuries.

UM / UIM claims can be notoriously complex. We will analyze your situation and prepare a settlement demand package that describes, in detail, the ways in which your life was impacted by the accident. Then we will work with the insurance companies to negotiate a favorable resolution to your claim. If the insurance companies are unwilling to make a fair offer, we will file a lawsuit to protect your rights and fight for full and fair compensation for your injuries.

Muth Law has decades of experience representing people throughout Michigan who were injured in car accidents. We understand the factors that determine whether a settlement offer is fair, and we know how to navigate the complex insurance claims process to ensure that you receive full and fair compensation for your injuries.

We invite you to learn more about us and the people we represent and to contact us today to schedule a free, confidential consultation to discuss your situation and how we can help. Call us anytime at 743-481-8800, email us at info@muthlawpc.com, or complete our contact form to schedule a free case evaluation.

Muth Law is based in Ann Arbor and proudly represents injured people throughout Michigan.