All 50 U.S. states have financial responsibility laws that require drivers to either carry car insurance or prove they can pay for expenses after causing a car accident.
But around 12% of drivers across the U.S. choose to forgo this requirement. The number jumps to 20% in Michigan, which has one of the highest rates of uninsured drivers in the nation, according to Insurify data.
A car accident with an uninsured driver can make recouping your losses challenging, especially if the accident wasn’t your fault.
With uninsured motorist (UM) coverage, your insurance company pays for your medical bills and property damage if a driver without insurance causes an accident.1
Learn how this car insurance coverage works in Michigan.
Michigan doesn’t require drivers to have uninsured motorist insurance by law, but including it in your auto policy is still a good idea. This type of auto insurance protects you financially if a person causes an accident and doesn’t have insurance to pay for your medical bills and car repairs.
These are Michigan’s minimum car insurance requirements:2
$50,000 in bodily injury liability coverage per person
$100,000 in bodily injury liability coverage per accident
$10,000 in property damage liability coverage per accident
Your chosen medical coverage limit for personal injury protection (PIP)
Up to $1 million in property protection insurance (PPI)
Uninsured motorist coverage helps pay for medical bills for you and your passengers when an uninsured driver causes an accident. It also pays for your car repairs. The primary benefit of UM coverage is that you won’t have to pay out of pocket when another driver is at fault — even if they don’t have insurance.
After an accident, your insurance company will try to recover the payment from the at-fault driver’s insurer. But it won’t be able to get payment if the other driver doesn’t have coverage. The same is true if you’re the victim of a hit-and-run accident. UM coverage can pay for your costs up to your coverage limits. It simplifies the claims process because you file through your insurer.
In some cases, an at-fault driver may carry liability insurance, but their coverage limits fall short of what’s needed after an accident. In these situations, you may use underinsured motorist (UIM) coverage, which applies when the at-fault driver doesn’t have enough insurance to cover your damages.
If your policy includes uninsured motorist insurance, you can use the coverage when a driver causes an accident with you but doesn’t have car insurance. Because the coverage is through your policy, you’ll file a claim with your insurance company.
You can also file an uninsured motorist claim after a hit-and-run, which happens when someone hits your car but drives away without giving you their contact details and car insurance information.
This insurance includes two primary coverages:3
Bodily injury coverage, which pays your medical bills up to your coverage limits
Property damage coverage, which pays for your car repairs up to your coverage limits
You and your passengers may also receive compensation for:
Lost wages if you can’t work after the accident
A rental car if your vehicle is out of commission because of an accident with an uninsured driver
Pain and suffering from emotional trauma after the accident
Diminished value if your car loses value in the accident
After an accident in Michigan, it’s important to file an insurance claim as soon as possible. Follow these steps for a smooth process:
If you still have questions about uninsured motorist coverage in Michigan, check out the following answers.
Michigan law doesn’t require drivers to carry uninsured motorist coverage. But if you live in a state with a high population of uninsured drivers — including Michigan — then adding uninsured motorist coverage to your policy can help protect you financially.
A general rule of thumb is to choose uninsured motorist bodily injury policy limits that match your liability coverage limits.
No. Michigan doesn’t require drivers to buy uninsured/underinsured motorist coverage. But you can choose to add it to your car insurance policy.
Uninsured motorist coverage protects you financially if someone else causes a car accident and lacks the coverage to pay your bills. The downside is that you may invest in coverage and never use it.
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