In Michigan, many people just use the baseline state requirements for car insurance. They believe that this means they are going to be covered if they are ever involved in an accident caused by someone else’s negligence.
However, this can create some issues if they get involved in a crash with an uninsured driver. It can be very financially challenging because the other driver does not have the proper insurance to cover property damage, medical bills and more. Even though insurance is required by law, many drivers do not carry the correct policy.
One option to address this is to purchase uninsured/underinsured motorist (UM/UIM) coverage. A person can buy this as part of their own policy, and then it pays out if the other driver does not have coverage. In some cases, auto insurance carriers may downplay this coverage because they do not want to be forced to pay out due to another driver’s mistake.
Do you have the correct coverage?
Failing to purchase UM/UIM coverage can be problematic. You should never assume that everyone you share the road with has coverage, even though Michigan is a no-fault state and insurance coverage is required.
It is also important to be aware of potentially deceptive tactics from insurance companies. If your insurance provider talked you out of purchasing uninsured motorist coverage, for example, it could be your financial future that is on the line.
For this reason, it is important to audit your insurance declaration sheets, read over your policy and make sure that you actually have the level of coverage that you need. Many people inadvertently believe that they are covered when they are actually facing a continuous level of risk.
If you have been involved in an accident or you are worried that the insurance company has not treated you correctly as a client, it can help to work with an experienced attorney.