Underinsured motorist coverage in Michigan protects you if you are injured in a car accident caused by a driver whose insurance is not enough to fully compensate you for your injuries.
It allows you to recover damages such as pain and suffering and other losses that exceed the at-fault driver’s liability insurance limits.
Without this coverage, your recovery may be limited to the other driver’s policy limits, even when those limits are far too low for a serious injury case.
Underinsured motorist coverage protects you when there is liability insurance available after a car accident, but the available policy limits are not enough to fully compensate you for your injuries. In Michigan, that problem is more common than many drivers realize.
If you are seriously injured by a driver with only minimum liability coverage, there may not be enough insurance available to cover the full value of your claim. In that situation, underinsured motorist coverage is often the only way to recover damages beyond the at-fault driver’s policy limits.
Underinsured motorist coverage protects drivers and families who are injured in car accidents caused by drivers whose insurance is not enough to fully compensate them for their injuries.
In Michigan, this problem is more common than most drivers expect. Many people carry only the minimum liability limits required under MCL 500.3009. While those limits satisfy the law, they are often far too low to cover the full value of a serious injury claim.
This creates a different kind of risk. There is insurance available, but not enough of it.
If you are seriously injured in a crash, the at-fault driver’s policy may be exhausted quickly, leaving a significant gap between what your case is worth and what is actually available to recover.
The reality is simple. When the available insurance is insufficient, underinsured motorist coverage may be the only way to close that gap and recover the full value of your claim.
Underinsured motorist coverage is one of the most important protections you can carry, even when other drivers are insured.
Underinsured motorist coverage (UIM) in Michigan provides a source of recovery for people who are injured in a car accident caused by a driver whose liability insurance is not sufficient to fully compensate them for their injuries.
It allows you to recover damages such as pain and suffering and excess economic losses that would otherwise be recoverable from the at-fault driver’s insurance, but exceed the available policy limits.
In Michigan, an underinsured driver is one who carries liability insurance, but whose coverage is inadequate to pay for the full extent of the damages caused by the accident.
When that occurs, underinsured motorist coverage allows you to recover those additional damages through your own insurance policy. If the at-fault driver has no insurance at all, uninsured motorist coverage may apply instead.
An underinsured driver is a driver who was at fault in causing a car accident and whose liability insurance coverage is not sufficient to fully compensate the injured person for their damages.
In Michigan, drivers are required to carry bodily injury liability insurance under MCL 500.3009. The statute sets minimum coverage limits for “bodily injury to or death of 1 person in any 1 accident” and for “2 or more persons in any 1 accident.”
Currently, the default minimum liability limits are $250,000 per person and $500,000 per accident, although drivers may choose lower limits of $50,000 per person and $100,000 per accident under MCL 500.3009(1)(a) and (5).
While these limits satisfy the legal requirement, they are often inadequate in serious injury cases. Medical expenses, lost income, and pain and suffering damages can quickly exceed the available coverage.
This is what makes a driver underinsured. There is insurance available, but not enough to cover the full value of the claim.
In an underinsured motorist claim, the process typically begins with a claim against the at-fault driver and their insurance company.
You must first establish fault and pursue the full amount of the available liability coverage. In most cases, this means resolving the claim for the at-fault driver’s policy limits.
If those limits are not enough to fully compensate you for your injuries, your underinsured motorist coverage may then apply to address the remaining damages.
At that point, your insurance company becomes responsible for paying the portion of your damages that exceed the at-fault driver’s available coverage.
Although the claim is made through your own policy, it remains a disputed claim. You are still required to prove liability, document your injuries, and establish the value of your losses.
Depending on the policy terms and the issues involved, resolving a UIM claim may require negotiation or litigation, and the at-fault driver may still be included as a party in the case.
Underinsured motorist coverage pays damages that exceed the at-fault driver’s available liability insurance.
This typically includes:
Underinsured motorist coverage is easiest to understand when you see how it applies in real-world situations. The key issue in each case is whether the at-fault driver’s insurance is enough to fully compensate the injured person.
📊 Underinsured Motorist Claim Examples
| Scenario | At-Fault Coverage | Total Damages | Outcome |
|---|---|---|---|
| Driver with minimum coverage | $50,000 | $200,000 | UIM coverage pays remaining $150,000 (up to policy limits) |
| Moderate injury crash | $100,000 | $300,000 | UIM fills gap after liability limits are exhausted |
| Severe injury with long-term care | $250,000 | $750,000 | UIM covers remaining damages beyond available coverage |
| Multiple injury accident | $500,000 per accident | $1,000,000+ | UIM applies once shared limits are exhausted |
Underinsured motorist coverage is contractual and governed by the terms of your insurance policy. These requirements must be satisfied in order to recover UIM benefits.
Many underinsured motorist policies require you to obtain your insurance company’s consent before settling with the at-fault driver’s insurance company.
This creates a critical issue in UIM cases. If the at-fault driver’s insurer offers to pay its policy limits, you cannot automatically accept that settlement without first addressing your UIM coverage.
If you settle your claim without your insurer’s consent when it is required under the policy, you may forfeit your right to recover under your UIM coverage.
For that reason, it is essential to review your policy and determine whether a consent-to-settle requirement applies. If it does, written approval from your insurance company must be obtained before accepting any settlement from the at-fault driver’s insurer.
Michigan courts have consistently enforced these provisions. Failing to comply with the policy requirements can result in a complete loss of UIM benefits.
Yes. Underinsured motorist coverage is one of the most important protections you can carry on your auto insurance policy.
Even when the at-fault driver has insurance, those policy limits are often too low to fully compensate you for a serious injury. Many drivers carry only the minimum liability coverage allowed under MCL 500.3009, which may be exhausted quickly in a significant accident.
Without underinsured motorist coverage, your recovery will be limited to the at-fault driver’s available insurance, even if it falls far short of the full value of your claim.
Underinsured motorist coverage protects you by allowing you to recover the difference between the at-fault driver’s policy limits and your total damages, up to the limits of your own policy.
The recommended underinsured motorist coverage in Michigan is at least $500,000 per person and $1,000,000 per accident.
Serious injuries can result in damages that far exceed minimum liability limits. Higher UIM coverage helps ensure that you are protected if the at-fault driver’s insurance is not enough to fully compensate you.
Fortunately, this coverage is typically inexpensive compared to the level of protection it provides.
Yes. Even when the at-fault driver has insurance, it is often not enough to fully compensate you for a serious injury. Without UIM coverage, your recovery may be limited to the other driver’s policy limits.
Yes. UIM coverage is relatively inexpensive and provides significant protection in serious injury cases where the at-fault driver’s insurance is insufficient.
Yes. UIM coverage is not limited to medical bills. It also provides compensation for pain and suffering and other damages that are not covered by health insurance or No-Fault benefits.
Yes. Collision and comprehensive coverage apply to vehicle damage. UIM coverage applies to personal injury damages when the at-fault driver’s insurance is not enough.
No. UIM coverage is optional and must be added to your policy. However, it is strongly recommended because many drivers carry limited liability coverage.
Uninsured motorist coverage applies when the at-fault driver has no insurance. Underinsured motorist coverage applies when the driver has insurance, but not enough to fully compensate you for your injuries. To better understand how these coverages compare, see our guide on uninsured and underinsured motorist coverage.
UIM coverage applies after the at-fault driver’s liability insurance has been exhausted and the available coverage is not enough to fully compensate you for your damages.
Yes. If you have UIM coverage, you may recover additional compensation beyond the at-fault driver’s policy limits, up to the limits of your own policy.
If you have been injured in a car accident involving an underinsured driver, understanding your insurance coverage is critical to protecting your financial recovery.
Underinsured motorist claims can be complex. The amount you are able to recover often depends on the specific terms of your policy, the available liability coverage, and the full extent of your injuries.
Taking the time to evaluate your situation can make a significant difference. If you have questions about your coverage or your rights, you can contact The Clark Law Office to discuss your case and better understand your options.
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