Michigan has one of the higher rates of uninsured drivers in the country. Uninsured motorist coverage fills a specific gap that your no-fault PIP doesn't: it pays when an at-fault driver has no insurance, and underinsured motorist coverage pays when they don't have enough. Without it, your recourse is primarily a lawsuit — often slow and incomplete.
Even with Michigan's no-fault system covering your own medical bills regardless of fault, there's a real gap that uninsured motorist coverage is specifically designed to fill — and it's worth understanding before you assume you're already protected.
What no-fault PIP does and doesn't cover
Your PIP coverage pays your medical bills and a portion of lost wages after a crash, regardless of who caused it. What PIP does not cover is pain and suffering, and it doesn't compensate you for the at-fault driver's liability if you're seriously injured — normally, you'd pursue that through the at-fault driver's liability insurance.
The problem: if the at-fault driver has no insurance, or not enough insurance to cover your damages, there may be no liability coverage to pursue at all.
What uninsured/underinsured motorist coverage actually does
Uninsured motorist (UM) coverage steps in when the at-fault driver has no insurance at all. Underinsured motorist (UIM) coverage steps in when the at-fault driver has some insurance, but not enough to cover your damages. Both effectively let you make a claim against your own policy for the portion the other driver's insurance can't or won't cover.
Why this is a real consideration in Michigan
Michigan has a meaningful percentage of drivers operating without insurance, despite it being legally required. Some estimates have placed Michigan among the states with one of the higher uninsured-driver rates in the country, a legacy in part of how expensive Michigan auto insurance was before the 2020 reform. While rates have shifted since then, uninsured driving remains a real and ongoing risk on Michigan roads.
It's not required — which is exactly why it's often skipped
Unlike PIP, PPI, and residual liability, uninsured/underinsured motorist coverage isn't mandatory in Michigan. That makes it one of the coverages most likely to be missing from a policy simply because nobody asked about it, not because it was a deliberate decision to go without it.
Worth a direct conversation
Given how exposed you can be without it, and how affordable it typically is to add, UM/UIM coverage is worth a specific yes-or-no conversation rather than leaving it to whatever was set by default when your policy was first written. If you're not sure whether you currently carry it, that's a five-minute phone call worth making.
Uninsured vs. underinsured: a practical example
Say you're seriously injured by another driver who is entirely at fault. If that driver has no insurance at all, your uninsured motorist coverage is what you'd turn to. If that driver has insurance, but only the state minimum liability limits, and your damages exceed what their policy can pay, your underinsured motorist coverage covers the difference, up to your own policy's limit. Without either, you'd be left pursuing the at-fault driver personally for any shortfall — a process that's often slow and, if they have limited assets, may not result in meaningful recovery at all.
How much coverage actually makes sense
A reasonable starting point is matching your uninsured/underinsured motorist limits to your own liability limits, on the logic that you'd want at least as much protection for yourself as you're required to carry for others. From there, your comfort level and what you could otherwise absorb out of pocket should guide whether to go higher.
The specific gap that PIP doesn't fill
Because Michigan's no-fault PIP covers your own medical bills regardless of fault, you might assume you're fully protected even if the other driver is uninsured. You're not. PIP handles medical and wage loss, but it doesn't compensate for pain and suffering or other non-economic damages in serious accidents. Those damages are where UM/UIM coverage becomes specifically relevant — it steps in when the at-fault driver can't cover them.
A practical example of what the gap looks like
Say you're seriously injured by an at-fault driver who has no insurance. Your PIP covers medical bills and a portion of lost wages. But pain and suffering, long-term care, and other non-economic damages? Those would normally come from the at-fault driver's liability insurance. Without it, and without UM coverage, your recovery on those claims is limited to suing that driver personally — often a slow process, and one that may not produce meaningful recovery if they have limited assets.
Property damage and UM coverage
Uninsured motorist coverage for property damage is sometimes a separate question from bodily injury UM coverage. If someone without insurance hits your parked car, collision coverage is typically what you'd use to get it repaired. This is one reason carrying both collision and UM coverage creates the most complete protection — they cover different aspects of the same underlying risk.
How much UM/UIM coverage to carry
A practical starting point: match your UM/UIM limits to your bodily injury liability limits. If you carry $500,000 in liability coverage for the protection of others, carrying equivalent limits for your own protection as a victim is consistent logic. The premium difference for increasing UM/UIM limits is generally modest relative to the additional coverage provided. Your declarations page shows your current limits — worth checking if you haven't looked recently.
Underinsured, not just uninsured
Underinsured motorist (UIM) coverage is distinct from uninsured (UM) — and often more relevant in practice. Michigan's minimum liability limits are the floor for what other drivers are required to carry, but a minimum-coverage policy may not cover damages from a serious accident. UIM kicks in when the at-fault driver has some coverage but not enough, filling the gap between what their policy pays and your actual damages.