While uninsured motorist coverage and underinsured motorist coverage serve similar purposes, there is a very distinct difference between the two.
Uninsured motorist coverage is designed to provide a source of recovery when a driver with no insurance policy causes harm. In other words, if you’re sitting at a light and get rear ended by a motorist without car insurance, your insurer will pay you for damages you would have recovered from the other driver had that person been insured, subject to your insurance policy.
Underinsured motorist coverage is designed to provide a source of recovery when a driver with an inadequate insurance policy causes harm. Let’s say your car gets smashed by a motorist running a red light. The accident causes extensive physical injuries and pain and suffering, but the person who caused the accident only has the state minimum $20,000 insurance policy. With underinsured motorist coverage, you will recover additional compensation from your own insurer to compensate for the injuries the at-fault driver caused.
If you or a loved one suffered serious injuries in a Michigan auto accident and are struggling to recover benefits from your insurance company, talk with an experienced Michigan auto accident lawyer.
You pay nothing until we settle your case. Let us help you today.