- January 22, 2023
- Car Accidents
- Insurance
- Personal Injury
Not all auto insurance policies are created equal. Motorists may elect to carry minimum personal injury liability coverage that's woefully inadequate if a severe accident happens. This is where underinsured motorist coverage steps in.Michigan underinsured motorist (UIM) coverage may be the only option to recover losses when the other driver’s auto insurance policy is insufficient. If you have UIM coverage, your insurance company covers what the underinsured driver's company cannot. Let Goodman Acker P.C. help you learn about the damages you can recover through underinsured motorist coverage.
Contact us at 248-286-8100 to speak with one of our attorneys.
Why Choose Goodman Acker P.C. to Represent You?
At Goodman Acker P.C., we have over 150 years of experience representing those involved in car accidents in Michigan. We understand how the insurance systems work and will represent you to ensure you get your benefits from your insurance company. If your case qualifies to file a lawsuit, we will help you commence the process and represent you as it goes to trial.
Call us today at 248-286-8100 to book a free case review.
What Is Underinsured Motorist Coverage?
Underinsured Motorist Coverage is part of your auto insurance policy that kicks in when the insurance of the responsible party in a car accident cannot cover all of the costs of injury and damages. It isn't required by law in Michigan, but protecting your family from the many underinsured motorists on the road is essential.
Minimum liability coverage through auto insurance companies is dangerously low for covering a driver's liability and protecting victims should the driver be responsible for an accident. Inadequate coverage also exposes responsible parties to severe financial consequences.
In July 2020, Michigan's no-fault insurance law changed, setting default liability minimums to $250,000 for one injured person and $500,000 for two or more injured parties. Motorists have the option to elect coverage as low as $50,000/$100,000.
Underinsured motorist coverage uses the injured party's auto insurance to cover what exceeds the responsible party's insurance limits. It covers pain and suffering compensation and other costs like lost wages or earning ability. It's best to have an attorney handle underinsured motorist claims to ensure the steps are correctly followed.
Underinsured motorist claims have many filing requirements. You need to provide the following:
- Proof the other driver is underinsured, the accident was their fault, their insurance company has maxed out its payout, and the other driver's policy won't pay all the damages
- Compliance with notice and other contractual requirements of the injured party's underinsured motorist insurance policy
- Compliance with the injured party's underinsured motorist policy's filing deadlines. Noncompliance may void UIM coverage.
- Review of other provisions regarding payments and if nonresident family members are covered.
When Do I File a UIM Claim?
After an accident, you must determine the need to file a claim and pursue it immediately. Underinsured motorist coverage contracts often have strict deadlines for filing claims, allowing about a month to determine if a claim is needed. This means you need to determine the extent of damages from an accident as soon as possible to decide whether the responsible party's insurance can cover all the damages.
This decision may be easy if the responsible parties carry state-mandated minimum coverage since it's quickly maxed out. As stated, claims require proof of the responsible party's fault. So, determining who is legally liable for an accident requires thoroughly investigating the facts. Insurance companies will likely conduct their investigation to limit their liability.
Personal injury attorneys must similarly protect their clients with access to investigators and experts specializing in complex technical details in personal injury cases. We will get expert witnesses to provide information or testimony to help your case if needed.
Furthermore, underinsured motorist coverage typically cannot exceed the policy owner's maximum liability. This coverage is relatively inexpensive, but it could cause insurance companies financial issues if the insured had low liability and high uninsured motorist coverage amounts.
Will My Insurance Company Investigate a Claim?
Your insurance company will investigate the case, checking on medical care and other details related to the accident. Legal representation will help ensure claims are properly filed, and all requirements are met. Our personal injury lawyers will work to uncover facts and evidence.
This may include accident reconstruction, which often needs more analysis than what is in police records. We will request a detailed analysis to show the factors in the accident, how it caused injury and damage, and which party is responsible. We can also coordinate reviewing security footage, interviewing witnesses, and monitoring social media and other online communications.
What Role Do Car Accident Attorneys Play?
Personal injury cases are complex and involve a lot of paperwork, medical terminology, and legal processes. At Goodman Acker P.C., our attorneys are prepared to handle the process and ensure no steps are missed or any essential documentation slips through the cracks.
We will effectively communicate with the other side's lawyer, especially during the fact-finding phase of litigation, where documents and facts are shared. Similarly, our personal injury attorneys are well-versed in dealing with insurance companies and standing their ground, ensuring clients aren't pushed to settle for lesser amounts.
Working with our personal injury attorney will get you the best result, whether a settlement or a jury verdict. Many cases are negotiated through a settlement rather than going to trial. Our personal injury attorneys work to negotiate settlements, which are a compromise where plaintiffs give up the right to sue in exchange for a payment from a defendant or insurance company.
If a settlement isn't possible, a trial is the next step. Our car accident lawyers will plan a strategy to help maximize your compensation for injuries, loss of work, and other expenses.
Alternative dispute resolution (ADR) is the third option we could employ, involving mediation or arbitration. Mediation is a process where a facilitator helps bring the parties to an acceptable agreement. Arbitration is a process where multiple people in a panel serve as judges to make a binding decision on a case, bypassing a trial through a decision made with a majority vote.
What Is Uninsured Motorist Coverage?
Uninsured motorist coverage protects drivers in case of an accident with a motorist who carries zero insurance or a hit-and-run accident. Like underinsured motorist coverage, uninsured motorist coverage protects you, the insured members of your household, and your passengers. It is also an optional element of auto insurance policies.
What Damages Can Be Recovered in an Underinsured Motorist Claim in Michigan FAQs
Underinsured motorist claims are uncommon, so those involved in accidents always have questions about them. The following are some of the most asked questions:
Must I Have Underinsured Motorist Coverage?
Having underinsured motorist coverage is not compulsory in Michigan -- it is optional. But buying it when getting your no-fault auto insurance is advisable, as it is helpful if the at-fault party in an accident does not have enough coverage to pay for damages.
What Happens If My Insurer Denies My Underinsured Insurance Claim?
If your insurer denies your claims for benefits, you can appeal their decision. If the denial was made in bad faith, you can take legal action with the help of our attorneys.
What Benefits Will I Get From an Underinsured Insurance Policy?
Underinsured motorist coverage is not meant to pay for medical bills. But it will pay for any excess medical expenses and is used primarily to compensate for pain and suffering and any additional economic loss.
Do I Need a Lawyer to File an Underinsured Insurance Claim?
Yes. While you can file the claim yourself, having a lawyer ensures the insurance company follows due process and does not cheat you out of your benefits.
Contact Goodman Acker P.C. to Speak With One of Our Car Accident Lawyers
Underinsured motorist coverage claims are challenging to navigate, and Michigan laws on auto insurance liability are evolving. Also, underinsured motorist claims require special attention to ensure that contracts are followed and claims are paid out. Therefore, you must protect your rights by hiring an attorney to represent your interests.
At Goodman Acker P.C., our personal injury attorneys will objectively assess your case and work to get you the best possible outcome. So, contact us today at 248-286-8100 for a free consultation.