Why Everyone Needs Uninsured and Underinsured Motorist Coverage in Michigan

Here's a number that should scare every Michigan driver: roughly 20% of drivers in Michigan are uninsured, and even more are underinsured — carrying the state minimum 50/100/10 that won't come close to covering a serious crash. If one of those drivers hits you, your own insurance becomes your only protection. That's where Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage come in — and they're the most overlooked, most important coverages on your policy.

What UM and UIM Actually Cover

Uninsured Motorist (UM)

Kicks in when the at-fault driver has no insurance at all — or when they flee the scene in a hit-and-run. UM pays for:

• Damage to your vehicle (if you don't have collision)
• Medical bills beyond what your PIP covers
• Lost wages that PIP doesn't fully replace
• Pain and suffering (something PIP does not cover)

Underinsured Motorist (UIM)

Kicks in when the at-fault driver has insurance, but not enough. If you're seriously injured and their $50K BI limit is exhausted, UIM covers the gap up to your chosen limit. Without it, you're left suing someone who probably has no assets — a hollow victory.

Why Michigan Drivers Need This More Than Most States

1. Michigan Has a Huge Uninsured Driver Problem

Michigan consistently ranks among the top 10 states for uninsured drivers. Between the high cost of no-fault insurance, economic hardship, and drivers who simply let policies lapse, the odds of being hit by someone with no coverage are uncomfortably high — especially in urban areas like Grand Rapids, Detroit, and Flint.

2. PIP Does Not Cover Everything

Michigan's no-fault PIP is excellent for medical bills, but it has real gaps:

• No pain and suffering — PIP is purely economic; it doesn't compensate you for the actual trauma of the crash
• Limited wage replacement — PIP caps lost wages at 85% of your income, and only for 3 years. High earners face a real gap
• No vehicle damage — PIP covers your body, not your bumper
• Excess medical — if you chose a low PIP limit, UM/UIM can bridge the gap

3. Mini Tort Is Pathetically Small

Michigan's Mini Tort law lets you recover up to $3,000 for vehicle damage from an at-fault driver. That's laughable if your car is totaled or even moderately damaged. UM property damage coverage is the real protection.

How Much UM/UIM Should You Carry?

Most agents — including us — recommend matching your UM/UIM limits to your own BI limits. If you carry 250/500, your UM/UIM should be 250/500. That way, you're protected to the same standard you hold yourself to.

Farmers Insurance offers UM/UIM in the same tiers as BI: 50/100, 100/300, 250/500, and up. The cost is surprisingly low — often $50-$150 per year for substantial protection.

"But I Have Collision — Do I Still Need UM?"

Collision covers your car regardless of fault, yes — but it doesn't cover:

• Your deductible (unless you have Broad Form with deductible waiver)
• Your pain and suffering
• Your lost wages beyond PIP's 85% / 3-year cap
• Any medical bills once your PIP limit is hit

UM and UIM fill those exact holes. Think of collision as protecting your car, and UM/UIM as protecting you.

The Hit-and-Run Scenario

This is where UM is non-negotiable. If someone hits you and drives off — common on dark Michigan winter roads — there's no at-fault driver to pursue. Your options without UM are:

• Eat your collision deductible (if you have collision)
• Eat the entire loss (if you don't have collision)
• Hope the police catch them (unlikely for minor property damage hits)

With UM coverage, you're protected the same way you'd be if the driver had stayed and admitted fault.

Get a Free Michigan Auto Insurance Review

Most drivers don't even know if they have UM/UIM, let alone how much. Knight Family Agency reviews every policy — including yours — to make sure you're not exposed. Fill out our quote form or call (616) 317-3747 and we'll check your current coverage against what you actually need.