For most individuals in Michigan, discussing your car insurance is probably not the best topic to win friends and influence people. Many consider insurance a boring topic and only insurance agents, when they are attempting to sell you a policy, really are interested in spending much time on the topic.
But that all changes once you have an accident involving a motor vehicle. This is especially true if you or a member of your family have suffered a severe injury and are looking at large medical expenses. Then insurance coverage may be the most interesting topic in the world.
And one of the least understood elements of a Michigan insurance policy may be the uninsured motorists insurance (UIM). This may sometimes be called under insured (UM) coverage and you may see the abbreviation UM/UIM that identifies this type of coverage on a policy.
UM/UIM is an optional coverage you purchase with your policy that is designed to provide compensation for your pain and suffering and excess wage loss if you are involved in an accident with another driver who has no insurance coverage.
While insurance coverage is mandatory under the Michigan No-Fault Insurance Act, the reality is there are many motorists on the road who lack this necessary coverage. If they cause a crash and you suffer injuries, it is likely that they won't have the financial resources to cover your compensation.
UIM coverage provides an additional source of compensation that you may be able to draw upon in these situations. This coverage also is applied if you are involved in a hit-and-run or phantom car accident, where the at-fault driver is unidentified.
Because UIM claims may be more complex, you may have difficulty collecting compensation from your insurance company. When this happens, an attorney may be able to assist you in obtaining the compensation you paid for.
Source: Michigan.gov, "No-Fault Automobile Insurance in Michigan," website accessed August 2015