I was speaking with a new client the other day and was explaining why Uninsured and Underinsured Motorist coverage on your auto insurance policy in the State of Michigan. UM or UIM as it is known in the industry is very inexpensive coverage which you are buying to cover YOURSELF!!
When you purchase auto insurance, of course you are buying protection if you hurt another driver or pedestrian, plus collision for your own ride. The state requires UM coverage, but it is often purchased as the minimum policy of $20,000. So, if an uninsured driver hits you, your max recovery is $20,000! Every driver should have at least $500,000 in UM coverage, and the cost is pennies a day!!!
UIM coverage is for when the bad driver who hits you is insured, but their policy is too small to cover your injuries ($20,000 is minimum) Most insurers offer this coverage, and it is again VERY CHEAP in the grand scheme of things. Again, $500k should be in every policy.
If you have further questions about UM or UIM coverages, auto accidents, any any legal issues, call me today at (313) 402-0853 for a free phone consultation.