Uninsured & Underinsured Motorist Accidents
Uninsured and Underinsured Motorist Claims: Your Own Policy May Be Your Most Important Asset After a Crash
Here's a reality that shocks most of my clients: roughly 20% of Michigan drivers are uninsured. And many more carry only the state minimum liability coverage — $50,000 per person / $100,000 per accident — which is grossly inadequate for any serious injury. When one of these drivers causes an accident that leaves you with $300,000 in medical bills, a shattered spine, or a traumatic brain injury, their insurance — if it exists at all — won't come close to covering your losses. That's where your own uninsured/underinsured motorist (UM/UIM) coverage becomes the most important asset in your case.
At Koussan Law, I handle UM/UIM claims regularly because they're one of the most underutilized tools in Michigan personal injury law. Most people don't know they have this coverage. Most people don't understand how it works. And most people don't realize that their own insurance company will fight just as hard as the at-fault driver's insurer to avoid paying.
How UM/UIM Coverage Works in Michigan
Uninsured Motorist (UM) coverage applies when the at-fault driver has no insurance at all. This includes hit-and-run accidents where the driver is never identified. Under MCL § 500.3163, Michigan insurers are required to offer UM/UIM coverage, but it's optional — you have to elect it. If you did, your UM policy steps in and pays as if it were the at-fault driver's liability insurance.
Underinsured Motorist (UIM) coverage applies when the at-fault driver has insurance, but their policy limits are insufficient to cover your damages. If the at-fault driver carries $50,000 in liability coverage and your damages are $500,000, your UIM policy covers the gap — up to your UIM policy limits.
The critical point: your own insurance company is now the one paying the claim. And they have every incentive to minimize it. They'll use the same tactics the at-fault driver's insurer would — questioning the severity of your injuries, challenging your medical treatment, disputing lost wages. The fact that you've been paying premiums to this company for years doesn't change their approach. You need an attorney who will treat your own insurer with the same aggressive posture as any other defendant.
Frequently Asked Questions
Q: Do I have UM/UIM coverage on my Michigan auto policy?
Check your declarations page. Michigan insurers must offer UM/UIM coverage under MCL § 500.3163, but you're not required to buy it. If you elected it, your policy will show UM and UIM coverage limits. If you didn't elect it, you may have signed a written rejection. If you're not sure, call your insurer and ask — or bring your policy to us and we'll review it. If you don't currently have UM/UIM coverage, I strongly recommend adding it. It's one of the most valuable coverages you can carry.
Q: Can I stack UM/UIM coverage from multiple vehicles?
Michigan's stacking rules depend on your policy language. Some policies allow stacking — combining the UM/UIM limits from multiple vehicles on the same policy to increase your available coverage. Others contain anti-stacking provisions. The policy language controls, and it's often ambiguous enough to litigate. I review every client's policy to determine whether stacking applies, because it can double or triple the available coverage.
Q: What if the at-fault driver's insurer offers a settlement — do I have to accept it before accessing my UIM coverage?
This is a critical procedural issue. Before accepting any settlement from the at-fault driver's insurer, you must notify your own UIM carrier and give them the opportunity to consent. Under Michigan law, accepting a settlement from the at-fault driver without your UIM carrier's consent can jeopardize your UIM claim. I coordinate this process carefully to preserve all available coverage.
Q: What is the statute of limitations for a UM/UIM claim in Michigan?
UM/UIM claims are contract claims against your own insurer, not tort claims against the at-fault driver. The applicable limitations period is typically governed by your policy language, but Michigan's general contract statute of limitations is six years under MCL § 600.5807. However, many policies contain shorter contractual limitations periods. Don't assume you have six years — read your policy or have an attorney review it immediately.
