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Underinsured motorist (UIM) coverage is one of the most important, but least understood, parts of any insurance package. UIM insurance is similar to uninsured motorist insurance in that both types of policies fills in gaps left open by the failure of another person to fully insure their own negligence.In Michigan, most auto insurance companies offer underinsured motorist coverage which will provide protection to you and your family in situations where you are invovled in a car accident with another car which did not have enough liability to cover your damges.

Underinsured motorist insurance is used when a motorcyclist is involved in an accident with an insured vehicle, but the insurance coverage is minimal or insufficient to fully compensate the injured motorcyclist for injuries sustained in the accident. As with uninsured motorist coverage, the injured motorcyclist files a claim with his or her own insurance company to make up for the other driver's shortfall.

In Michigan, the minimum auto insurance liability policy is only $20,000 per person in an accident. Therefore, many times, individuals have injuries and damages which far exceed the other driver's minimum liability policy of $20,000. In an underinsurance motorist claim, generally, injured persons will have to file a lawsuit against the negligent driver and the owner of the other vehicle involved in the accident, as well as make a claim with their own insurance company for the underinsurance motorist coverage.

For example, in Michigan, many drivers only have $20,000 minimum in insurance coverage, which is the minimum amount required by law. Suppose a motorcyclist was involved in an accident with someone who has only $20,000 in coverage and that unfortunately, the motorcyclist's medical bills alone cost over $45,000 and the motorcyclist had to miss work for 6 months while undergoing rehabilitation and physical therapy. Without UIM coverage, that motorcyclist could only receive up to $20,000 in compensation for his or her injuries and would have to bear the additional cost of the injuries without any help. But if the motorcyclist had purchased a UIM policy for $500,000, then he or she could claim the difference between their UIM policy's limit and the amount that was covered by the other driver's insurance. In this example, that would be up to an extra $480,000.

Underinsured motorist coverage is very inexpensive and, as this example shows, is an extremely important part of an insurance package. When possible, bikers should purchase a very large amount of UIM insurance since some policies offer $500,000 of coverage for around $80 per year and since there are so many drivers with only the bare minimum level of insurance. If your insurance company does not offer Underinsured Motorists coverage, you should change to a company that offers UIM insurance. This is often the difference between a φθηνες online 3μηνη ασφαλειες αυτοκινητου direct fair settlement or a minimal settlement.

About the Author:

Lawrence J. Buckfire is a Michigan motorcycle accident lawyer that represents victims of motor vehicle accidents. You can also request a free copy of our book, "The Ultimate Michigan Motorcycle Accident Handbook," to learn more about your legal rights after being injured in a Michigan motorcycle accident.