The at-fault driver’s insurance has a maximum it will pay, called the policy limit. In Michigan, drivers can choose liability coverage as low as $50,000 per person. When someone is seriously injured, the damages can easily exceed that — and the insurance company will not pay a penny more than its limit.
We recently recovered the full policy limits for a client severely injured by a negligent driver. (Every case is different, and prior results don’t guarantee a similar outcome.)
When the at-fault driver has too little insurance
A policy-limits recovery is often the goal in serious injury cases. But it shouldn’t be where the search ends. We look for every other source of recovery:
- Your own underinsured motorist (UIM) coverage, which can pay the difference when the at-fault driver’s coverage isn’t enough.
- Other at-fault drivers and their policies.
- The vehicle owner’s policy, if someone else owned the car.
- An employer’s policy, if the driver was working.
- Umbrella policies that add coverage above a driver’s auto policy.
When the at-fault driver has no insurance
Your own uninsured motorist (UM) coverage, if you have it, can pay what the at-fault driver should have. Your no-fault PIP benefits still apply for medical bills and wage loss. Learn about PIP benefits.
Protect your underinsured claim
Underinsured and uninsured coverage is governed by the terms of your policy, and those terms often include notice deadlines and requirements to get your insurer’s consent before settling with the at-fault driver. Missing one can jeopardize your claim. Talk to a lawyer before you accept any policy-limits offer.
Check your own coverage today
Since these coverages are optional in Michigan, many drivers don’t realize they don’t have them until it’s too late. Look at your declarations page for “uninsured motorist” and “underinsured motorist.”
Frequently asked questions
Is underinsured motorist coverage required in Michigan?
No. Uninsured and underinsured motorist coverage are optional in Michigan, so many drivers don’t have them. Check your policy’s declarations page — and consider adding them if you don’t have them.
The at-fault driver’s insurer offered its policy limits. Should I accept?
Before you accept, check whether you have underinsured motorist coverage. Many policies require you to notify your own insurer, or get its consent, before settling with the at-fault driver. Accepting too quickly can put your underinsured claim at risk.