Hit by a Driver with No Insurance? How to Access the "Safety Net" Clause in Your Own Policy

Michigan is a dangerous place to drive. Not only do you have to deal with reckless drivers, but in many areas, over 20% of drivers are uninsured. This can cause a lot of financial problems for people who are injured in a car accident involving an uninsured driver or vehicle.

How do you get compensation if you get hit by a driver who is uninsured?

The answer is to look at the “safety net” clauses in the insurance policies that cover car accidents, and even your own insurance policy. This clause is usually referred to as Uninsured Motorist Coverage (UM).

QUICK SUMMARY: UNINSURED MOTORIST (UM) COVERAGE

• What it is: A "Safety Net" in your own policy that pays you if the at-fault driver has no insurance.
• What it pays: Pain and suffering settlements, and sometimes excess lost wages.
• Who it covers: You, your family, and often passengers in your car.
• Hit-and-Run: It also covers you if the driver flees the scene (but you must file a police report within 24 hours).

What is Uninsured Motorist Coverage?

Uninsured motorist coverage steps into the shoes of a negligent driver who causes an accident and is not insured. In effect, it pays pain and suffering compensation stemming from a Michigan car crash. In some situations, it will also pay lost wages and medical bills if there is no PIP coverage.

Uninsured motorist coverage is found in two ways:

1. The insurance policy for the vehicle involved in the crash.
2. The insurance policy for the person injured in the crash.

This means just because you don't have auto insurance doesn't mean you can’t get uninsured motorist benefits. You can still make a claim through the insurance policy for the car you were occupying at the time of the crash.

Important: UM coverage is not mandatory in Michigan. However, many people refuse to pay for it. If it’s not listed in the insurance policy, an individual cannot make a claim for UM benefits.

Whether you can gain access to uninsured motorist coverage depends on the policy language. Many policies allow any occupant of a vehicle to recover uninsured motorist benefits. However, not all policies allow all occupants to receive uninsured motorist benefits. Sometimes, only the named insured or the policyholder can receive these benefits. Still, some carriers permit anyone occupying the vehicle at the time of the crash to make a claim.

What are Uninsured Motorist Benefits?

Uninsured motorist benefits are the damages a person can obtain for the injuries they sustained from a motor vehicle accident. These benefits include two types of damages:

Non-Economic Damages:

Items such as pain and suffering, emotional distress, anxiety, depression, loss of society, and other non-economic damages.

Economic Damages:

Economic losses such as lost wages, payment of medical expenses, medical liens, and out-of-pocket medical expenses (if not covered by PIP).

What Situations Does Uninsured Motorist Coverage Apply?

This safety clause applies in many different situations when a car or truck crash occurs. For example:

Pedestrian Accidents

A pedestrian crossing the street is hit by a driver whose vehicle is uninsured. The pedestrian may then turn to their own auto insurance or the auto insurance of a resident relative for payment of pain and suffering and other non-economic damages.

Hit-And-Run

This one is really important. UM coverage applies in hit-and-run crashes. When a negligent driver causes a crash and flees the scene, the license plate and driver are often not identified. They vanish, and the police don’t expend the resources to find the perpetrator. In this frustrating situation, the injured person can seek compensation for pain and suffering from their own insurance company.

Riding a Bike

Individuals injured by an uninsured car while riding a bicycle can also get UM benefits. These claims are similar to pedestrian accidents. Even if your vehicle is not involved in the crash, you can look to your own auto insurance for payment if the negligent driver and owner are uninsured.

How Much Uninsured Coverage Should I Get?

The amount of uninsured motorist benefits a person can receive depends on the policy covering the motor vehicle and the amount of coverage purchased.

The minimum amount of uninsured motorist coverage a person can purchase in Michigan is $50,000 per person or 100,000 per occurrence. This is an increase from the old law, which set the minimums at $20,000 and $40,000.

However, it is smart to select higher levels of coverage. In fact, most people select at least $250,000 in uninsured motorist coverage to adequately protect themselves and their families.

Is Uninsured Motorist Coverage Expensive to Buy?

No. In the grand scheme of auto insurance costs, UM coverage is relatively inexpensive. Just $50,000 in coverage can often cost under $20 for 6 months. It is important to shop around when buying insurance and to make sure the insurance agent includes UM coverage when quoting rates.

Who is the Defendant in an Uninsured Motorist Case?

UM coverage cases are first-party cases. This means the defendant is the insurance company.

The company you paid to protect you can become the one fighting your claim. Insurance companies are in the business of making money and regularly refuse to pay valid claims. This is where a great Michigan car accident lawyer can assist you and your family.

When you file a UM claim, you are essentially suing your own auto insurance. They can dispute:

• Liability (negligence)
• Whether the incident caused the injuries (causation)
• The severity of the injuries
• The amount of compensation the defendant must pay to the injured person

What are the Pitfalls of Uninsured Motorist Cases?

Like anything involving insurance, there are pitfalls and traps a person must be aware of when making a UM case. This is why it is essential to contact an experienced Michigan personal injury law firm after a crash.

Notice Requirements

Notice requirements can destroy a case. In a UM case, the language in the insurance policy controls. And many insurance policies require the claimant to promptly notify the carrier after a crash.

In addition, the claimant must cooperate with the insurance company in its investigation of the claim. This can include providing a recorded statement and a signed medical authorization so the insurance company can review your medical records.

Sometimes the insurance carrier will want an EUO, or examination under oath. This is when a lawyer for the carrier will ask the claimant questions about the crash and their medical treatment under oath.

Hit-And Run Accidents

The notice requirements for a hit-and-run accident are very stringent and important. Almost all policies require:

• A police report within 24 hours of the hit-and-run crash.
• A duty to notify the insurance company of a potential UM case within 30 days of the hit-and-run crash.

Failing to comply with these requirements can result in the carrier voiding coverage or refusing to pay benefits. It is vital to contact a great Michigan car accident lawyer when this happens.

Uninsured Motorist Lawyers in Michigan

The Michigan car accident attorneys at the Lee Steinberg Law Firm can assist you and your family in recovering uninsured motorist benefits.

Many people are unaware of this safety net provided by insurance companies. They think that because they were hit by an uninsured driver or a hit-and-run driver, they are out of luck. But this is simply not true.

Instead, it is important to call the best uninsured accident lawyers in Michigan at 1-800-LEE-FREE (1-800-533-3733). Our dedicated personal injury lawyers and staff are standing by to answer your questions and get your case started. Call Lee Free today.