We are seeing an increase in Michigan auto policies where protection against Uninsured Motorist liability has been purchased at the lowest limits available, and protection against Underinsured Motorist has not even been included.
Not only are these coverages very inexpensive, they are also important to protect you and your family. Here I explain how both UM & UIM liability coverage work, and why they should be an important part of your insurance plan.
Uninsured and Underinsured Motorist Liability is first of all, NOT for the injured driver of an uninsured or underinsured driver. Many people hear the terms and assume that they are to protect others who don’t buy insurance. This is completely false. It is in fact, for you to collect from your ‘own’ policy when you are critically injured by someone who’s policy limits are inadequate in relation to the injuries that the at-fault uninsured or underinsured driver caused you.
When you are disabled, disfigured or killed by someone who has no insurance or low limits, (including hit & run accidents), you or your estate can then access the liability benefits under your own policy; as long as you have purchased and included them in your coverage.
Given that at any time in Michigan it is estimated that between 21% and 28% of Michigan drivers are driving without any auto insurance, I would make sure that I was protecting myself and my estate for the actions of others that could tragically alter or end my life.