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Know The Law: Uninsured Motorist

Posted at 9:00 AM, May 26, 2018
and last updated 2018-05-26 09:00:50-04

Uninsured Motorist Coverage is Separate from No-Fault

Across the United States, one out of seven vehicle owners are driving without car insurance. To make sure that you are fully compensated when you are in a car crash, you need to purchase uninsured motorist coverage.

The name of this optional coverage is confusing. We might initially ask why we need to purchase this because we already have insurance. In order to be a legal driver in the state of Michigan, you only need to purchase no-fault coverage and liability insurance, in order to protect against other people that you may accidentally harm.

Protect Your Family with Uninsured Motorist Coverage

When you are involved in a hit-and-run collision, this becomes an uninsured motorist case. This is not because we know that the other driver did not have insurance, but simply because we do not know who the driver was. Uninsured motorist coverage is insurance that you buy to protect you and your family from bad drivers who do not have insurance. Again, it is not mandatory to purchase uninsured coverage, but it is highly recommended.

During the 2017 calendar year, there were roughly 35,000 hit-and-run crashes in the state of Michigan.

Relatively Affordable Coverage

For example, our no-fault system will take care of medical expenses and the first three years of lost wages after a car crash. After those three years, you have to get the rest of the lost wages from the other driver, if you are no longer able to work. However, if the other driver does not have insurance, there is nothing you would be able to get. That is what it is critical for drivers to purchase uninsured motorist coverage.

In this case, if you had uninsured coverage, you would make a claim to your own insurance company to recover lost wages after the first three years. This type of claim can be tricky, so it is important to review your insurance policy. Uninsured motorist coverage can be relatively cheap, with people spending around $20/year.