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Uninsured & Underinsured Motorist Coverage

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Uninsured & Underinsured Motorist Coverage

Here the the state of Michigan the auto insurance requirements have changed in order to lower the overall cost of auto insurance for consumers. We have some of the highest rates for auto insurance in the country, mostly due to offering Unlimited Medical coverage (payment for injuries relating to auto insurance for as long as you live). In amongst the changes is the ability to change your medical coverage from the Unlimited Medical to a dollar limit or if you have qualifying health insurance or Medicare, you can opt-out of medical coverage on your auto policy.

Another item that changed is the minimum Bodily Injury coverage the state requires. For current auto insurance policies, the state requires $250,000 per person and $500,000 per accident. You can purchase less coverage but will face penalties and other issues in case of an auto accident.We have speculated before (and lawyers tend to agree) the reason for the new state minimum for Bodily Injury is the result of people having a choice of medical coverage on their auto policies. They may choose to opt-out of medical coverage and later realize after an accident that they have annual deductibles/office & drug co-pays/limitations/exclusions/etc. With mounting medical bills, they will try to sue the at-fault party to help pay for them.

But what if the at-fault party has no auto insurance (about 20% of Michigan residents don’t carry auto insurance) or carry limits lower than the state requires? What if you opted-out of medical coverage or decided to choose a dollar limit and have become a paraplegic or worse because of the accident? Is there recourse?

Yes. You can purchase Uninsured and Underinsured Motorist coverage on your auto policy. These are optional coverages in the state of Michigan, meaning they are not required by the state.

Uninsured Motorist coverage provides excess No-Fault Personal Injury Protection and other economic losses (including pain & suffering) in an automobile accident caused by a driver who is uninsured (someone who does not carry auto insurance coverage as required by Michigan law). This is an “excess” coverage, meaning that all other avenues for coverage will need to be exhausted first. If you have health insurance and your injuries exceed or are not covered, you can pursue a UM claim.

Underinsured Motorist coverage provides the same excess No-Fault Personal Injury Protection and other economic losses (including pain & suffering) in an automobile accident by a driver who is UNDER-insured according to the state of Michigan. This means drivers who carry less than Bodily Injury limits of $250,000/$500,000 or $500,000 CSL.

We recommend that you match your UM/UIM limits to match your Bodily Injury limits, the cost is minimal in relation to the coverage provided.

Contact Us!

At M. Vander Plow Insurance Agency, we can work with you to make sure you’ve got the coverage you need, while at the same time using all possible credits and discounts to make that coverage affordable. Just give us a call at 616-396-1497 or send us a note at mvpinsagency@gmail.com. We want to help you meet your goals, and make sure what’s important to you is protected!

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