The state of Michigan requires that you purchase no-fault insurance from your auto insurance provider. What the insurance company may not tell you is that many motorists do not have any liability insurance or they may have extremely low policy limits. Uninsured and under-insured protection is available to Michigan residents, but it comes at an extra cost and is not required by Michigan law. If you decide to purchase the option, the insurance company will end up paying for the compensation you would have received if the negligent driver had higher liability coverage. This type of insurance is designed to protect you in the chance you are seriously injured by another motorist with little or no liability coverage. If you happen to be the negligent driver with no insurance or little coverage, you are exposing your personal assets which could cause you serious financial hardship or worse yet bankruptcy. You still must prove the other driver is at fault and you still must prove that you have suffered an injury which passes the tort threshold�. While you should be able to recover first party benefits under your no-fault protection which include your medical expenses, attendant care, wage loss, replacement services, and medical mileage, if the other driver has just the minimum liability insurance or even no liability insurance it could mean no compensation from the driver at fault.  In many of these situations, your best option is to contact The Clark Law Office - theclarklawoffice.com/auto-accident-attorneys/

As an example, if you suffer a serious injury from a car accident where you can prove the other driver was negligent, you are entitled to file a 3rd party benefit lawsuit where you can recover pain and suffering damages on top of the normal 1st party benefits paid by your own auto insurance provider. In a 3rd party suit you are actually suing the driver at fault and they are responsible for paying these non-economic damages which also include excess wage loss. Suppose the other driver has no-fault insurance, but does not have any liability coverage or not enough liability coverage. Even if you can meet the “tort threshold”, you would be unable to collect compensatory damages for your pain and suffering as well as excess wage loss because they either have no insurance or not enough to cover the actual damages incurred. The “tort threshold” has become harder to meet throughout the years and you must prove your injury meets one of three thresholds which include death, serious impairment of a bodily function, or permanent serious disfigurement.

In order to recover damages from your under-insured vehicle policy, you must be awarded the full policy limit from the negligent driver involved in the auto accident. You will also need permission from the provider of your UM/UIM policy in order to settle with the negligent driver out of court. If you fail to do so, you may end up giving up your UM coverage simply because you weren’t granted proper consent. I would recommend that you call your local Michigan auto accident attorney or call your auto insurance provider to make sure you have the coverage you need, it could save your financial well-being for the future!