Uninsured & Underinsured Motorist Coverage

Getting into a car accident is stressful enough, but it’s even worse when the at-fault driver has no insurance or not enough to cover your damages. In Michigan, Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage help protect you in these situations by allowing you to recover compensation from your own insurance policy.

While Michigan’s No-Fault insurance covers your medical bills and some lost wages, UM and UIM coverage help fill the gap when the at-fault driver lacks adequate insurance. These coverages are not required by law, but having them can be crucial if you’re involved in a hit-and-run or struck by an uninsured or underinsured driver.

This guide explains when UM and UIM claims apply, how to file a claim, and what to do if your insurance company delays or denies your compensation.

Table of Contents

What Is Uninsured and Underinsured Motorist Coverage?

Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage are optional insurance protections that safeguard you if you’re hit by a driver without insurance or with too little insurance to cover your damages.

Uninsured Motorist (UM) Coverage applies when the at-fault driver has no auto insurance or in hit-and-run accidents where the driver flees the scene.
Underinsured Motorist (UIM) Coverage helps if the at-fault driver has insurance, but their policy limits aren’t enough to cover your medical expenses, lost wages, and pain and suffering.

Even though Michigan requires all drivers to carry No-Fault insurance, thousands drive without coverage. If you’re involved in a crash with an uninsured or underinsured driver, you could be left paying out-of-pocket unless you have UM/UIM coverage.

Having both UM and UIM coverage ensures you’re financially protected when the other driver’s insurance fails you. Next, we’ll cover when you can file a claim under these coverages.

When Can You File an Uninsured or Underinsured Motorist Claim?

If you’re injured in an accident and the at-fault driver lacks sufficient insurance, you may be able to file a UM or UIM claim. However, these claims are not automatic—you must meet certain conditions outlined in your insurance policy. Below is a table showing when UM and UIM coverage applies in Michigan:

🚗 Scenario	✅ Uninsured Motorist (UM) Applies?	✅ Underinsured Motorist (UIM) Applies?
Hit-and-run accident (driver flees the scene)	✅ Yes	❌ No
At-fault driver has no insurance	✅ Yes	❌ No
At-fault driver has insurance, but policy limits are too low	❌ No	✅ Yes
At-fault driver’s insurer denies coverage or is insolvent	✅ Yes	❌ No
Multiple vehicles involved, but at-fault driver’s coverage is exhausted	❌ No	✅ Yes

⚠️ Important: UM/UIM claims must be filed with your own insurance company, and policies often have strict deadlines. If you delay reporting the accident, you could lose coverage.

Having UM/UIM coverage can be a financial lifesaver in situations where the at-fault driver’s insurance fails to cover your losses. But how much coverage do you actually need? Let’s explore the recommended policy limits next.

How Much UM/UIM Coverage Do You Need?

Michigan does not require drivers to carry uninsured (UM) or underinsured (UIM) motorist coverage. However, adding this protection is highly recommended especially since 1 in 4 drivers in Michigan is uninsured. Most experts recommend carrying at least $100,000 per person / $300,000 per accident for UM/UIM bodily injury.

If you drive frequently in high-risk areas or have dependents who rely on you, opting for higher coverage limits can provide essential financial protection. If you only choose the minimum coverage offered by your insurer, you could still face unpaid medical bills, lost wages, and other expenses after a serious accident. Increasing your policy limits helps ensure you and your family are fully protected if you’re hit by an uninsured or underinsured driver.

How to File an Uninsured or Underinsured Motorist Claim

Filing a UM/UIM claim is different from a standard car accident insurance claim. Since you are seeking compensation from your own insurance company, the process requires specific steps to ensure you receive full benefits. Below is a table outlining the key steps to file a UM/UIM claim in Michigan:

🚗 Step	📌 What to Do
📝 Notify Your Insurance Company	Report the accident and inform them you are filing a UM/UIM claim. Most policies have strict deadlines.
📄 Provide Proof of Insurance & Policy Coverage	Confirm that your policy includes UM/UIM coverage and verify your coverage limits.
📑 Submit Evidence of the Accident & Other Driver’s Status	Provide the police report, witness statements, and proof that the other driver was uninsured or underinsured.
💰 Document Your Damages	Gather medical records, lost wage documentation, repair estimates, and proof of pain and suffering.
⚖️ Negotiate or Dispute Denial	If your claim is undervalued or denied, you may need to challenge your insurer with legal support.

Since you are making a claim against your own insurer, they may try to minimize your payout just like a third-party claim against another driver. If your UM/UIM claim is delayed, undervalued, or denied, consulting an attorney can help ensure you receive the compensation you deserve.

Common UM/UIM Claim Disputes & How to Fight Back

Even if you have Uninsured or Underinsured Motorist Coverage, insurance companies may try to deny, delay, or undervalue your claim. Understanding why claims get denied can help you prepare a strong case and avoid common pitfalls. Below is a table outlining the most common reasons UM/UIM claims are denied and how to fight back:

🚫 Denial Reason	⚖️ How to Challenge It
🕒 Missed Deadline	Insurers may claim you didn’t report the accident or file on time. Review your policy for reporting deadlines and provide proof of timely notice.
📄 Lack of Evidence	The insurer may argue there’s not enough proof of the accident or injuries. Submit police reports, medical records, and witness statements to support your claim.
💰 Disputing Injury Severity	The insurance company may downplay your injuries to minimize payouts. Get medical evaluations, expert testimony, and detailed documentation to prove the extent of your injuries.
🚘 Questioning the Other Driver’s Insurance Status	Insurers may insist the at-fault driver was insured or had adequate coverage. Obtain official documentation proving the driver was uninsured or underinsured.
📉 Lowball Settlement Offer	The insurer may offer far less than your claim is worth. Negotiate with supporting evidence or seek legal representation to demand fair compensation.

If your claim is wrongfully denied or undervalued, don’t accept the first answer—you have the right to appeal and fight back. Many insurance companies only offer fair compensation when pressured with strong legal representation.

Frequently Asked Questions About Uninsured & Underinsured Motorist Coverage

Is UM/UIM coverage required in Michigan?

No, Michigan law does not require drivers to carry uninsured or underinsured motorist coverage. However, it is highly recommended since many drivers either lack insurance or have only minimum coverage, which may not be enough to cover serious injuries.

Does UM/UIM coverage pay for vehicle damage?

No. UM/UIM coverage only applies to bodily injuries. To cover vehicle damage caused by an uninsured driver, you may need collision coverage or Michigan’s mini-tort claim (up to $3,000 from the at-fault driver).

What happens if I don’t have UM/UIM coverage and the at-fault driver is uninsured?

If the at-fault driver has no insurance and you don’t have UM coverage, you may have limited options. Your No-Fault PIP benefits will cover medical expenses and lost wages, but you won’t be able to recover pain and suffering damages.

Can I file a UM/UIM claim if I was in a hit-and-run accident?

Yes. Uninsured motorist coverage often applies to hit-and-run accidents, as the fleeing driver is considered uninsured. However, you must report the accident promptly and provide as much evidence as possible.

How long do I have to file a UM/UIM claim?

Each insurance policy has its own deadline, but many require notice within 30 days of the accident. Always check your policy and notify your insurer as soon as possible to avoid missing deadlines.

Can my insurance company deny my UM/UIM claim?

Yes, and they often do. If your claim is denied or undervalued, you have the right to challenge the decision and seek legal help to protect your rights.

Contact a Michigan Car Accident Lawyer for UM/UIM Claim Help

If you’ve been injured in an accident involving an uninsured or underinsured driver, you shouldn’t have to fight your insurance company alone. UM/UIM claims can be complicated, and insurers often look for reasons to delay, underpay, or deny your rightful compensation.

At The Clark Law Office, we know how to challenge unfair denials and maximize your recovery. We’ll handle all negotiations, gather the necessary evidence, and ensure you receive the full benefits you’re entitled to. 📞 Call us today for a free consultation. There are no upfront fees, and we don’t get paid unless you win. Let us fight for the compensation you deserve.

Learn how coverage gaps are handled through other insurance options in our car accident insurance guide.

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