Uninsured Motorist (UM) Coverage

Uninsured Motorist (UM) coverage in Michigan is an important component of auto insurance designed to protect you in case you are involved in an accident with an at-fault driver who doesn’t have insurance or doesn’t have enough insurance to cover your losses. It provides coverage for you, your passengers, and your vehicle in the event of such accidents. Here’s an explanation of uninsured motorist coverage in Michigan, including what it covers, what it does not, available variances, limits, limitations, how to choose an option, and other important information for consumers:

What Uninsured Motorist (UM) Coverage Covers

  1. Bodily Injury Coverage: UM coverage helps pay for medical expenses, rehabilitation costs, and lost wages if you, your passengers, or family members are injured in an accident with an uninsured or underinsured driver.
  2. Property Damage Coverage: It covers the repair or replacement of your vehicle and any personal property inside it that is damaged in an accident with an uninsured or underinsured driver.
  3. Hit-and-Run Accidents: UM coverage also applies when the at-fault driver flees the scene (hit-and-run) and cannot be identified or located.

What Uninsured Motorist (UM) Coverage Does Not Cover

  1. Your Own Liability: UM coverage does not cover your liability for injuries or property damage to others. It is meant to protect you when another driver is at fault and lacks sufficient insurance.
  2. Intentional Acts: It does not cover injuries or damages resulting from intentional acts or criminal behavior.

Variations and Limits

In Michigan, you can typically choose the following variations and limits for UM coverage:

  1. Uninsured Motorist Bodily Injury (UMBI): This component covers medical expenses, rehabilitation, and lost wages for you and your passengers. You can select different limits, such as $20,000 per person and $40,000 per accident or higher, depending on your needs.
  2. Uninsured Motorist Property Damage (UMPD): UMPD covers the repair or replacement of your vehicle and personal property damaged in an accident with an uninsured or underinsured driver. Coverage limits vary by insurance provider but are often lower than UMBI limits.

Choosing a UM Coverage Option

When selecting UM coverage in Michigan, consider the following factors:

  1. Budget: Assess your financial situation and determine how much you can afford in premiums.
  2. Coverage Limits: Evaluate your risk tolerance and needs to select appropriate coverage limits for both UMBI and UMPD.
  3. Level of Protection: Consider the prevalence of uninsured or underinsured drivers in your area and choose coverage limits accordingly.

Important Considerations:

  • Michigan law requires auto insurance companies to offer UM coverage, but you are not required to purchase it. However, it is highly recommended to protect yourself from potential financial losses in accidents involving uninsured or underinsured motorists.
  • UM coverage is essential, especially in states like Michigan where the percentage of uninsured or underinsured drivers can be relatively high.
  • To make a UM claim, you may need to provide evidence that the at-fault driver is uninsured or underinsured, which can involve legal processes.

​In summary, Uninsured Motorist (UM) coverage in Michigan is a valuable component of auto insurance that provides protection in case you are involved in an accident with a driver who lacks insurance or adequate coverage. By assessing your budget, coverage limits, and local risk factors, you can choose the right UM coverage to ensure financial security in such situations.