What is Underinsured Motorist Insurance Coverage?

Michigan law requires all drivers to have auto insurance, but that doesn’t necessarily mean all drivers have insurance with the same levels of coverage. When people are in the process of choosing their auto insurance policy, not only can they choose from different levels of coverage for personal injury protection (PIP) and bodily injury and property damage (BIPD), there are other options for collision coverage, as well as optional coverage like underinsured motorist coverage. Even though Michigan law doesn’t require drivers to have underinsured motorist insurance, it can be important. 

How Underinsured Motorist Insurance Works

If a car accident causes serious injuries or death, the at-fault driver’s BIPD coverage applies to the damages they are found to be liable for. When Michigan’s no-fault law was reformed in 2019, drivers were required to have BIPD coverage with at least $250,000 for bodily injury or death to one person in any one accident and $500,000 for bodily injury or death to two or more people in any one accident. However, that coverage can be reduced to $50,000/$100,000 if the driver agrees to sign a waiver agreeing to be financially responsible if they are at fault for an accident that causes injury or death. 

Even though $50,000 or $100,000 might sound like a lot of money, those numbers can be reached very quickly when serious injuries are involved. If the injured person has auto insurance that includes underinsured motorist coverage, and their damages exceed the at-fault driver’s BIPD policy limits, the injured person can make an underinsured motorist claim through their own insurance policy.

What Does Underinsured Motorist Insurance Cover?

If an injured person’s medical expenses exceed their policy’s PIP coverage, and those expenses should have been covered by the at-fault driver’s BIPD insurance, that can be covered by underinsured motorist insurance. It can also cover non-economic types of damages like pain and suffering and reduced enjoyment of life.

Contact a Michigan Car Accident Lawyer

If you’ve been injured in a car accident, you need the help of a lawyer who can help you get the justice you deserve. At Scott Goodwin Law, you’ll be able to get help from a car accident lawyer experienced in Michigan no-fault law. We can help you deal with insurance companies so that you get all of the compensation you need, not just for your initial medical expenses but for related care you might need in the future. Contact us today to schedule a consultation.