top of page

What is Uninsured/Underinsured Auto Coverage?


What is Uninsured/Underinsured Auto Coverage?
(Photo by Getty Images)

Click here or call (248) 349-1122 to request a Michigan Auto Insurance Quote!

Uninsured motorists are relatively common

With the exception of New Hampshire, every state in the U.S. has a minimum mandatory car insurance requirement. Despite that, about one out of every eight drivers does not carry auto coverage; in some states, that number is one out of five.

If you’re involved in a serious accident with a motorist who doesn't have an auto insurance policy, you could be at risk for substantial financial losses. Uninsured and underinsured motorist coverage is designed to protect against that possibility.

A handful of states require that uninsured coverage be included in all auto policies. Whatever the laws in your state, it's a good idea. Check your policy or ask your insurance professional to make sure you're covered if the other guy isn't.

Make sure you're insured

Don't go without at least a basic auto insurance policy. Even if you feel it's tough to afford it, in the long run it's for your own financial protection.

To help ensure that everyone, regardless of financial circumstances, can obtain car insurance, some states have programs to assist lower-income drivers. Check with the insurance division in your state to see if they offer such a program. Shop around and learn how you can reduce your car insurance costs and look for insurers that specialize in writing policies for lower-income consumers.

Uninsured motorist coverage

Specific options for uninsured motorist coverage vary by state and insurer, but in general there are three types of protection:

  • Uninsured Motorist (UM) insurance – Also known as Uninsured Motorist Bodily Injury (UMBI) insurance, this coverage will pay your and your passengers’ medical bills if you’re involved in an accident with an uninsured motorist who is at fault. In addition, UM insurance will reimburse you and your passengers for lost wages. UM coverage also kicks in if, as a pedestrian, you are hit by an uninsured driver, or if you’re the victim of a hit-and-run accident.

Underinsured motorist coverage

So let’s say you get into an accident caused by an underinsured driver. Their insurance will pay for injuries up to their policy limit, and your underinsured motorist coverage will step in and cover the remaining amount up to your policy limits. If you don’t have this coverage, you could be left paying out-of-pocket for some of the medical expenses — even though it wasn’t your fault!

For example: You sustain $50,000 worth of bodily injury expenses. The driver who hit you is only covered for $25,000. Since you have $100,000 worth of underinsured motorist property damage, your insurance will cover you for the remaining $25,000.


Proudly offering Personal & commercial auto insurance in Northville, Ann Arbor, Canton, Detroit, Dearborn Heights, Garden City, Farmington, Farmington Hills, Inkster, Livonia, Novi, South Lyon, Southfield, Redford, Wayne, Westland, Wixom, Ypsilanti, Pittsfield, & Scio Township, Michigan.

670 Griswold Street #100 Northville, MI 48167

                     (248) 349-1122

  • Grey LinkedIn Icon
  • Grey Google Places Icon

CA License: 0G47886

We use cookies to personalize and enhance your experience on our site.  Visit our Privacy Policy to learn more. By using our site, you agree to our use of cookies, as well as our Privacy Policy and Terms of use.

I'm a paragraph. Click here to add your own text and edit me. It's easy.

I'm a paragraph. Click here to add your own text and edit me. It's easy.

bottom of page