- October 22, 2025
Getting into a crash with a driver who doesn’t have enough insurance—or none at all—can leave you unsure how to pay for your losses. Many people in Michigan find themselves in this situation after an accident, wondering whether their own insurance will help cover medical bills, vehicle repairs, or lost income. This uninsured/underinsured motorist (UM/UIM) claims guide explains how Michigan law handles these types of claims and what steps can help protect your right to recover damages.If you suffered injuries or losses in a car accident that an uninsured/underinsured driver caused, contact an auto accident injury attorney near you today for a free consultation.
An attorney can handle the details of these claims, communicate with insurance companies, and protect your rights and interests.
Key Takeaways: Michigan Uninsured/Underinsured Motorist Claims
- Michigan law requires all auto insurance policies to include uninsured motorist coverage, protecting you when at-fault drivers lack adequate insurance.
- UM/UIM coverage can compensate you for medical expenses, lost wages, and pain and suffering that the at-fault driver's insurance cannot cover.
- You must notify your insurance company about a potential UM/UIM claim within one year of the accident under Michigan law.
- Underinsured motorist claims arise when the at-fault driver's policy limits are insufficient to cover your total damages.
- Your UM/UIM coverage can provide important financial protection without affecting your own insurance rates.
What Is Uninsured Motorist Coverage in Michigan?
When someone without insurance causes an accident, uninsured motorist (UM) coverage allows you to recover compensation through your own insurer. This coverage prevents victims from being left with unpaid bills when the at-fault driver cannot pay.
UM/UIM coverage pays for injuries and damages when the driver responsible for the crash doesn’t have liability insurance. It applies to both vehicle collisions and hit-and-run incidents when the other driver cannot be identified.
How UM Coverage Works Under Michigan No-Fault Law
Michigan’s no-fault system requires each driver to use their own personal injury protection (PIP) coverage for immediate medical costs and lost wages. However, UM coverage applies when injuries meet the threshold for filing a claim against another driver, such as when serious or permanent impairment occurs. UM coverage then addresses the losses not covered by PIP.
Mandatory UM Coverage Requirements in Michigan
Michigan law mandates that insurance policies include UM coverage. This rule ensures every driver has some form of protection if hit by an uninsured driver. Policyholders can select different levels of coverage based on their financial needs and risk tolerance.
What Is Underinsured Motorist Coverage?
UIM coverage provides benefits when the at-fault driver’s liability insurance runs out before your losses are fully paid. For example, if your damages total $100,000 but the other driver’s policy covers only $50,000, your UIM policy may cover the remaining amount up to your limits.
The Difference Between UM and UIM Claims
- UM claim: The at-fault driver has no insurance or cannot be identified.
- UIM claim: The at-fault driver has insurance, but their policy limit isn’t high enough to cover all damages.
When UIM Coverage Applies
UIM coverage applies after the other driver’s insurance pays its maximum limit. You must first recover that amount before submitting a claim under your own policy.
What Types of Damages Does UM/UIM Coverage Pay For?
UM/UIM coverage helps pay for both economic and non-economic losses that arise after an accident.
Economic Damages Covered
Economic damages include measurable financial losses such as:
- Medical expenses: Hospital bills, therapy, surgeries, and medication costs.
- Lost wages: Income you miss while recovering from injuries.
- Property damage: Costs of repairing or replacing your vehicle.
Non-Economic Damages (Pain and Suffering)
Non-economic damages address the personal impact of an injury. This includes physical pain, reduced mobility, anxiety, or lifestyle limitations resulting from the crash.
Excess Economic Loss Coverage
If your costs exceed your PIP coverage limits, UM/UIM benefits may cover the remaining amount. This includes long-term care expenses or future lost earnings.
Who Qualifies for UM/UIM Benefits in Michigan?
UM/UIM benefits extend beyond the policyholder in many cases.
Eligible Claimants Under Your Policy
The named insured, household members, and sometimes authorized drivers may qualify for benefits. Coverage depends on the exact policy language.
Coverage for Family Members and Passengers
Family members living in the same household typically receive coverage under your policy. Passengers injured in your car may also qualify if they don’t have their own UM/UIM protection.
Pedestrians and Cyclists Hit by Uninsured Drivers
Michigan law allows injured pedestrians and cyclists to pursue UM benefits under their own auto insurance policy if struck by an uninsured or hit-and-run driver.
How Do I File a UM/UIM Claim in Michigan?
Following the correct process increases your chances of receiving full benefits under your policy.
Step 1: Report the Accident to Police
Always call law enforcement after an accident, especially if the other driver lacks insurance or flees. The police report provides essential documentation for your claim.
Step 2: Notify Your Insurance Company
Report the accident to your insurer as soon as possible. Many policies require notice within specific time limits. Early reporting preserves your right to file a UM or UIM claim later.
Step 3: Gather Documentation and Evidence
Collect all records related to the accident, including photographs, medical reports, repair estimates, and witness statements. Evidence strengthens your position if the insurance company disputes your claim.
Step 4: File Your Claim Within Applicable Deadlines
Michigan law sets deadlines for filing UM/UIM claims. Acting promptly prevents the insurer from denying your claim due to late submission.
What Is Michigan's One-Year Notice Requirement?
Under Michigan Compiled Laws Section 500.3145, an injured person must notify their insurer about a UM or UIM claim within one year of the accident. Failing to meet this notice requirement may result in losing coverage rights.
Consequences of Missing the Deadline
Missing the one-year notice period allows the insurer to deny payment, even if the claim would have otherwise qualified. Courts generally uphold this rule strictly.
Exceptions to the One-Year Rule
Certain limited exceptions may apply, such as when the claimant lacked knowledge of the policy or was incapacitated. However, these situations are rare, and prompt notice remains essential.
Contact an attorney as soon as possible to ensure you don’t miss critical deadlines.
Can I Stack UM/UIM Coverage in Michigan?
Stacking refers to combining policy limits from multiple vehicles or policies to increase your total available coverage.
Michigan's Anti-Stacking Rules
Most Michigan insurance policies include anti-stacking provisions that prevent combining coverage from multiple vehicles or policies under the same insurer.
Limited Stacking Opportunities
Stacking may only apply when separate policies exist with different insurers, or when the language in one policy doesn’t clearly prohibit it.
How Policy Limits Affect Your Recovery
Your recovery depends on your UM/UIM coverage limits. Choosing higher limits when purchasing your policy provides greater financial protection if a serious accident occurs.
What Happens If the At-Fault Driver Is Never Found?
Sometimes, the driver who caused the crash leaves the scene or can’t be identified.
Hit-and-Run Accidents and UM Coverage
UM coverage typically applies in hit-and-run cases when a physical impact occurred and the unknown driver fled.
Phantom Vehicle Claims
A phantom vehicle claim involves a crash caused by an unidentified vehicle that didn’t make direct contact but caused you to swerve and crash. Proving these claims often requires strong evidence, such as witness testimony or surveillance footage.
Proof Requirements for Unknown Driver Claims
To succeed with a UM claim for an unknown driver, you must show evidence that another vehicle caused the crash and that reasonable efforts were made to locate the driver.
How Does UM/UIM Coverage Work With Michigan No-Fault Benefits?
UM/UIM benefits interact with Michigan’s no-fault insurance system in specific ways.
Coordination of PIP and UM/UIM Benefits
PIP benefits cover immediate medical expenses and lost wages regardless of fault. UM/UIM coverage supplements those benefits when the at-fault driver’s insurance is unavailable or insufficient.
Third-Party Liability Claims vs. UM/UIM Claims
A third-party claim targets the at-fault driver directly. A UM/UIM claim targets your insurer to fill the financial gaps left by the at-fault party’s lack of adequate coverage.
Avoiding Double Recovery
Insurers review claims to ensure you don’t receive duplicate payments for the same loss. For example, you can’t collect the same medical expense from both PIP and UM coverage.
What Are Common Challenges in UM/UIM Claims?
UM/UIM claims often involve disputes between policyholders and their insurers.
Insurance Company Disputes Over Fault
Insurers sometimes argue that their policyholder caused the accident or shared part of the blame to reduce the payout.
Disagreements About Policy Limits
Insurers may claim that policy limits prevent additional payments even when damages exceed those limits.
Valuation Disputes for Pain and Suffering
Insurance companies may undervalue non-economic damages, offering less than what’s reasonable based on the injuries sustained.
Bad Faith Tactics by Insurers
Bad faith occurs when an insurer delays, denies, or mishandles a valid claim without justification. Michigan law allows policyholders to take legal action in these situations.
How Long Do I Have to File a UM/UIM Lawsuit in Michigan?
Most UM/UIM lawsuits must be filed within three years from the accident date or from when the cause of action arose.
Tolling Provisions for Minors
If the injured person is under 18, the statute of limitations may pause until they reach legal adulthood.
Importance of Timely Action
Prompt legal action preserves your ability to recover damages and prevents insurers from using time limits to deny your claim.
How Our Attorneys Can Help
Goodman Acker PC helps clients pursue UM/UIM benefits with thorough investigation and strong advocacy.
Investigating Your Accident and Identifying All Coverage
We review all available insurance policies to find every possible source of compensation, including your own policy, household members’ policies, or coverage through an employer.
Negotiating With Insurance Companies
We communicate with insurance companies on your behalf to prevent underpayment or delay tactics and to keep your case moving forward.
Calculating Your Full Damages
Our team works with medical providers, financial experts, and vocational specialists to document your injuries, treatment costs, and impact on your ability to work.
Filing Lawsuits When Necessary
If the insurer refuses to pay a fair amount, we can file a lawsuit to enforce your contractual rights under your UM or UIM policy.
Protecting Your Rights Against Bad Faith Practices
We hold insurers accountable when they mishandle claims, violate policy terms, or engage in unfair settlement practices.
Frequently Asked Questions About Uninsured/Underinsured Motorist Claims
Will filing a UM/UIM claim raise my insurance rates?
No. Michigan law prohibits insurers from increasing your rates solely because you filed a UM or UIM claim for an accident that wasn’t your fault.
Can I still recover damages if I was partially at fault for the accident?
Yes, but Michigan’s comparative fault rules may reduce your recovery by your percentage of fault.
What if the uninsured driver files for bankruptcy?
Your UM coverage remains available even if the at-fault driver files for bankruptcy, since your claim goes through your own insurer.
Do I need a lawyer to file a UM/UIM claim?
Insurers often interpret policy terms narrowly and do all they can to reduce or deny claims. An attorney helps ensure your claim meets all requirements and deadlines and improves your odds of obtaining maximum compensation.
Can I reject UM/UIM coverage in Michigan?
Most Michigan policies automatically include UM coverage. Some insurers allow limited waivers, but opting out leaves you unprotected if hit by an uninsured driver.
Contact Our Uninsured/Underinsured Motorist Attorneys in Michigan Now
Michigan’s time limits for uninsured and underinsured motorist claims move quickly, so early action helps protect your rights. Goodman Acker PC has helped many Michigan drivers pursue fair compensation through their UM and UIM coverage after accidents with uninsured or underinsured drivers. Our attorneys can review your policy, explain your options, and handle your claim from start to finish. Contact our office for a free consultation.