What Happens if I’m Injured by a Driver with Minimal Auto Insurance?
People injured in Michigan car accidents caused by an at-fault driver with minimal auto insurance may have a right to recover underinsured motorist benefits from their own insurance policy.
Sometimes the at-fault driver’s insurance policy may not provide enough coverage to fully compensate the victim. In fact, Michigan drivers can carry as little as $50,000 worth of coverage to compensate someone injured or killed as a result of their negligence.
If the injured person has underinsured motorist coverage on their own auto insurance policy and the at-fault driver’s policy does not have enough coverage to fully cover the injured person’s damages, the victim can pursue that uncovered portion of their damages through an underinsured insurance claim with their own auto insurance company. This is similar to pursuing an uninsured motorist claim against a driver who has no insurance at all.
Also, it is possible that if the injured person does not have their own underinsured motorist coverage but was a passenger in a vehicle that was covered by underinsured motorist coverage, the injured person may be covered under that policy.
Because of the state’s low mandatory minimum insurance requirements, Michigan drivers should always consider purchasing underinsured motorist coverage. While underinsured motorist coverage is optional, it protects you and your family in the event you’re in a crash with an underinsured driver who has lousy and inadequate coverage.