Podcast Episode 5 – Michigan Automobile Uninsured and Under-Insured Law


Michigan Automobile Drivers May Be Uninsured or Under-Insured!

We all know that if you get hurt by someone else in an automobile accident, you may have a claim for damages for things like pain and suffering. What most people don’t realize is often times there are drivers on the road who either have no insurance or did not have sufficient insurance.

What Michigan Law Requires

Michigan law only requires a person to have $20,000/ $40,000 coverage on a motor vehicle. Most people know this as PLPD. PLPD means that that person can be sued and insurance will only pay up to $20,000 per injury and $40,000 total per accident. So, for example, if 3 people get hurt there’s only $40,000 to be divided up from the insurance company. Now what most people don’t have and should have is both what is called under and uninsured motor vehicle coverage.

Ask Your Insurance Agent For Uninsured Motor Vehicle Coverage

Be aware, this is something that a lot of insurance agents will not bring up. There’s not enough money in it for them to make it worth their while, and it is surprisingly cheap.  Here’s the difference: If you have uninsured motor vehicle coverage and you get hurt by someone else’s negligence in a car accident, your insurance company will pay what their insurance company should have paid, except they didn’t have insurance.

Why You Should Have Automobile Under-Insurance Coverage In Michigan

For example, if you have $100,000 uninsured policy, it turns out the drunk driver had nothing, you can still make a claim for $100,000 with your insurance company for their negligence. The other portion of the policyunder-insured, simply means if they don’t have enough insurance, you could make a claim against your company for over and above what their insurance provided.

So I’ll give you another example, let’s say a drunk driver severely injured you and they have PLPD, that is $20,000 in limits, and you have $100,000 injury. Well, if you have $100,000 policy, your insurance will make up the difference between that $20,000 limit and $100,000, Which means they’ll pay 80 plus the 20, for a total of 100. The whole idea is to make you whole. 

A Typical Michigan Underinsured Policy Is Surprisingly Cheap

Now, you have to purchase this policy on your own. You’d be surprised how cheap it is. I currently have $1,000,000 for both under and uninsuredand the last time I looked, it cost me $16 every six months. Some companies don’t even sell this, so you do need to shop around. But it’s, easy to find one that does, and it’s the cheapest part of a policy by far.

So if you ever look into reviewing your auto insurance policy, always ask your agent about, and make sure you include, uninsured and under-insured coverage.

Call Patrick Maruiak If You Have A Question About Michigan Automobile Accident Law

Any questions on this? Contact me at (989) 725-8118. I have 30 years experience representing people in Shiawassee County and surrounding areas who have been harmed in automobile accidents.



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