Car accidents are stressful enough without having to worry about whether the at-fault driver has insurance. Unfortunately, many drivers in Lansing and throughout all of Michigan don’t carry the required auto insurance, which leaves accident victims to deal with medical bills, lost wages, pain and suffering, and vehicle repairs on their own. Even when a driver has insurance, their coverage may not be enough to fully compensate you for your losses, thanks to the reformed no-fault laws. Navigating these challenges can be overwhelming, which is why filing an insurance claim after a Lansing car accident requires a clear understanding of your coverage and legal options.
This is where uninsured motorist (UM) and underinsured motorist (UIM) coverage can protect you. These optional insurance policies help cover expenses when the at-fault driver has no insurance or not enough coverage to pay for your damages.
In this guide, we’ll explain how UM/UIM coverage works in Lansing, why it’s important, and what to do if you need to file a claim. Understanding your rights and coverage options can help you protect yourself in the event of an accident with an uninsured or underinsured driver.
What Is Uninsured & Underinsured Motorist Coverage?
Uninsured motorist (UM) and underinsured motorist (UIM) coverage are optional add-ons to your auto insurance policy that protect you if you’re in an accident with a driver who either has no insurance or lacks enough coverage to fully compensate you.
- Uninsured Motorist (UM) Coverage applies when the at-fault driver does not have auto insurance or if you’re involved in a hit-and-run accident where the driver is never identified.
- Underinsured Motorist (UIM) Coverage applies when the at-fault driver has insurance, but their policy limits aren’t enough to cover your medical bills, lost wages, and other damages.
| Coverage Type | When It Applies | What It Covers |
|---|---|---|
| Uninsured Motorist (UM) Coverage | The at-fault driver has no insurance OR it’s a hit-and-run accident. | Medical bills, lost wages, pain and suffering, and (in some cases) vehicle damage. |
| Underinsured Motorist (UIM) Coverage | The at-fault driver has insurance, but their policy doesn’t cover all your damages. | Pays the difference between the at-fault driver’s insurance payout and your actual damages—up to your UIM policy limits. |
Even though Michigan has mandatory auto insurance laws, many drivers on Lansing roads fail to carry proper coverage. This makes purchasing UM/UIM coverage an important financial safeguard. Without it, you could be left paying out of pocket for accident-related expenses that should have been covered by the at-fault driver’s insurance.
Why You Need UM/UIM Coverage in Lansing
Even though Michigan requires all drivers to carry no-fault auto insurance, many Lansing drivers either don’t have coverage or don’t have enough coverage to fully compensate accident victims. If you’re in a crash with an uninsured or underinsured driver, you could be left struggling financially with medical bills, attendant care, replacement services, third party benefits, and lost wages.
Lansing’s Rate of Uninsured Drivers
Michigan has one of the highest rates of uninsured drivers in the country and Lansing is no exception. According to industry estimates, as many as 25% of Michigan drivers are uninsured. This means that if you’re involved in an accident, there’s a 1 in 4 chance the other driver won’t have insurance to cover your losses. Commercial truck accidents can be especially complex, as many truck drivers lack sufficient coverage to pay for serious injuries. If you were involved in a truck crash, a truck accident attorney in Lansing can help you explore your legal options.
Hit-and-Run Accidents & Uninsured Motorists
Uninsured motorist coverage also protects you if you’re the victim of a hit-and-run accident. In many cases the at-fault driver flees the scene to avoid responsibility leaving you with no way to file a claim against their insurance. If police are unable to identify the driver, your UM coverage can step in to cover your damages just as if the driver had no insurance at all. Motorcyclists are particularly vulnerable in hit-and-run accidents, as drivers often flee to avoid liability and motorcycle insurance works differently than other vehicles. If you’ve been injured in a crash, an experienced motorcycle law firm in Lansing can help protect your rights.
Having UM/UIM coverage ensures that you’re financially protected even when the other driver fails to follow Michigan’s insurance laws. Without it you could be left paying out of pocket for an accident that wasn’t your fault.
How Uninsured Motorist Coverage Works After an Accident
If you’re involved in a car accident with an uninsured driver or a hit-and-run, your uninsured motorist (UM) coverage can help cover your losses. Instead of filing a claim against the at-fault driver’s non-existent insurance, you file the claim with your own insurance company under your UM policy. Here’s how the process typically works:
- Report the Accident Immediately – Call the police and ensure an accident report is filed. If it’s a hit-and-run, this documentation is crucial to proving you were not at fault.
- Notify Your Insurance Company – Let your insurer know you’ll be filing a UM claim. Provide them with details about the accident and the at-fault driver’s lack of insurance.
- Provide Evidence of Your Damages – This includes medical records, vehicle repair estimates, lost wage documentation, and any other proof of financial losses.
- Negotiate a Settlement – Your insurer will evaluate your claim and offer a settlement based on your UM policy limits.
- Dispute a Lowball Offer (If Necessary) – Insurance companies may try to minimize payouts, even when dealing with their own policyholders. If they offer less than what your claim is worth, you may need a Lansing car accident lawyer to negotiate a fair settlement.
UM coverage typically helps pay for:
- Medical expenses
- Lost wages
- Pain and suffering (if applicable)
- Vehicle repair costs (if you have uninsured motorist property damage coverage)
If the insurance company delays or denies your claim, legal assistance may be necessary to ensure you receive the full compensation you’re entitled to under your policy.
How Underinsured Motorist Coverage Fills the Gap
Underinsured motorist (UIM) coverage helps when the at-fault driver has insurance, but their policy limits aren’t enough to fully cover your damages. In Michigan, the minimum liability insurance requirements are often too low ($50,000) to pay for serious injuries or extended medical treatment. This leaves accident victims responsible for expenses that exceed the at-fault driver’s coverage. Here’s how UIM coverage works after an accident:
- The at-fault driver’s liability limits are too low – Michigan’s minimum required insurance ($50,000 per person/$100,000 per accident for bodily injury) may not be enough to cover serious injuries.
- Your damages exceed the at-fault driver’s policy limits – If your medical bills, lost wages, and other damages total more than their coverage, UIM can help pay the remaining balance.
- You file a claim with your own insurer – After receiving the maximum payout from the at-fault driver’s insurance, you then file a UIM claim with your own insurance company for additional compensation.
For example, if your total damages from an accident are $150,000, but the at-fault driver’s policy only covers $50,000, your UIM coverage can help pay the remaining $100,000 up to the limits of your policy.
Why UIM Coverage Is Important
Many Lansing drivers only carry minimum liability insurance, which may not be enough to fully compensate you if you suffer serious injuries, extended medical treatment, or lost income. Without UIM coverage, you could be left paying out-of-pocket for costs that should have been covered.
How to File a UM/UIM Claim in Michigan
If you’re involved in an accident with an uninsured or underinsured driver, you’ll need to file a UM/UIM claim with your own insurance company. While this process is supposed to be straightforward, insurance companies often try to minimize payouts even when dealing with their own policyholders and long time customers. Here’s how to file a UM/UIM claim in Michigan:
- Report the Accident to the Police – If the at-fault driver is uninsured or it’s a hit-and-run, a police report is crucial to proving your claim. Insurance companies may deny coverage if there’s no official accident report.
- Notify Your Insurance Company Immediately – Michigan insurance policies typically have strict deadlines for filing UM/UIM claims, often requiring notice within 30 days of the accident. Failing to report in time could result in a denied claim.
- Provide Evidence of the At-Fault Driver’s Insurance (or Lack Thereof) – If the driver was uninsured, you may need a statement from their insurer confirming their lack of coverage. If they were underinsured, you must first exhaust their policy limits before filing a UIM claim.
- Submit Proof of Your Injuries & Damages – This includes medical records, vehicle repair estimates, lost wage documentation, and any out-of-pocket expenses related to the accident.
- Negotiate a Fair Settlement – Your insurance company will offer a payout based on your policy limits, but they may lowball the offer. Be prepared to negotiate or consult a Lansing car accident lawyer if the offer is unfair.
Insurance companies will often delay, dispute, or undervalue UM/UIM claims, so it’s important to act quickly and keep detailed records of all communications. If you run into issues, a lawyer may be necessary to ensure you receive the compensation you’re entitled to.
What to Do If Your UM/UIM Claim Is Denied
Even though uninsured and underinsured motorist coverage is designed to protect policyholders, insurance companies often delay, deny, or undervalue these claims to minimize payouts. If your UM/UIM claim is denied it doesn’t necessarily mean you’re out of options.
Common Reasons UM/UIM Claims Are Denied
- Failure to Report the Accident on Time – Many policies require you to notify your insurer within 30 days of the accident.
- Lack of Evidence – If there’s no police report, medical documentation, or proof of damages, the insurer may argue the claim is invalid.
- Disputes Over Fault – The insurance company may claim you were at fault and therefore not entitled to compensation.
- Policy Exclusions – Some policies have fine-print exclusions that insurers may use to avoid paying.
- Bad Faith Insurance Practices – Some insurers deny valid claims simply to avoid large payouts, hoping the policyholder will give up.
Steps to Take If Your UM/UIM Claim Is Denied
- Request a Written Explanation – Ask your insurer for a detailed reason why your claim was denied.
- Review Your Insurance Policy – Check the terms of your UM/UIM coverage to ensure the denial is valid.
- Gather Additional Evidence – If your claim lacked documentation, submit further proof of medical bills, repair estimates, or witness statements.
- File an Appeal – You can dispute the denial and request that the insurance company reconsider your claim.
- Consult a Lansing Car Accident Lawyer – If the insurer refuses to pay a fair settlement or is acting in bad faith, an attorney can negotiate on your behalf or take legal action to force payment.
Many UM/UIM denials are unfair or unjustified and policyholders often accept them without realizing they can challenge the decision. If your claim has been wrongfully denied, legal action may be the only way to get the compensation you deserve.
Contact a Car Accident Attorney in Lansing for a Free Consultation
If you’ve been in an accident with an uninsured or underinsured driver, dealing with the insurance company can be frustrating and overwhelming. Even though UM/UIM coverage is supposed to protect you, insurers often delay, dispute, or deny claims to minimize payouts. You shouldn’t have to fight for fair compensation alone.
At The Clark Law Office, we help Lansing accident victims navigate uninsured and underinsured motorist claims ensuring they receive the compensation they’re entitled to. Whether your claim has been denied, delayed, or undervalued, we can negotiate with the insurance company on your behalf and, if necessary, take legal action to secure your settlement. If you need help with a UM/UIM claim, don’t wait. Call our trusted personal injury attorneys in Lansing, Michigan today.
Frequently Asked Questions (FAQs) About Uninsured & Underinsured Motorist Coverage in Lansing
Is uninsured motorist (UM) coverage required in Michigan?
No, uninsured motorist (UM) coverage is not required by Michigan law, but it is highly recommended. Since Michigan has a high number of uninsured drivers, having UM coverage protects you if you’re in an accident with someone who has no insurance or if you’re involved in a hit-and-run.
How does underinsured motorist (UIM) coverage work?
Underinsured motorist (UIM) coverage applies when the at-fault driver has insurance but not enough to cover all your damages. After you receive the maximum payout from their policy, your UIM coverage can step in to cover the remaining costs—up to your policy limits.
What does UM/UIM coverage pay for?
UM/UIM coverage can help pay for medical bills, lost wages, pain and suffering, and other damages if the at-fault driver is uninsured or underinsured. Some policies also include uninsured motorist property damage (UMPD), which can help cover vehicle repairs.
What should I do if I’m in a hit-and-run accident in Lansing?
If you’re in a hit-and-run, treat it like any other accident—call the police immediately, document the scene, and notify your insurance company. Your uninsured motorist (UM) coverage can cover your damages, but insurance companies often require proof that the accident was not your fault—such as a police report or witness statements.
How long do I have to file a UM/UIM claim in Michigan?
Most insurance policies require you to notify your insurer within 30 days of the accident if you intend to file a UM/UIM claim. However, the statute of limitations for filing a lawsuit over a denied claim is three years from the date of the accident.
What if my UM/UIM claim is denied?
Insurance companies often deny or undervalue UM/UIM claims. If your claim is denied, you can appeal the decision, submit additional evidence, or take legal action. A Lansing car accident lawyer can negotiate with your insurer and, if necessary, file a lawsuit to ensure you receive the compensation you deserve.
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