Underinsured Motorist Claims in Ann Arbor, MI

You did everything right. You stopped at the red light, you wore your seatbelt, you followed the rules. Then someone plowed into you—texting, speeding, or just careless. Now you're facing months of medical treatment, time away from work, and bills piling up faster than you can count them. When you finally track down the at-fault driver's insurance information, you discover they carry only Michigan's minimum liability coverage. It's nowhere near enough to cover your losses.

At Logeman & Iafrate, P.C., we've spent more than 45 years fighting exactly these cases. We understand the frustration and financial stress that comes when a negligent driver doesn't carry adequate insurance. Our Ann Arbor attorneys know how to navigate Michigan's underinsured motorist system to pursue the full compensation you're owed and hold insurance companies accountable when they try to minimize legitimate claims.

Understanding Underinsured Motorist Coverage in Michigan

Underinsured motorist (UIM) coverage protects you when the at-fault driver's liability insurance isn't sufficient to cover your damages. This situation happens more often than most people realize. Michigan requires drivers to carry only $50,000 per person and $100,000 per accident in bodily injury liability coverage—limits that can be exhausted quickly in serious crashes involving significant injuries, multiple surgeries, or long-term disability.

Your own auto insurance policy may include optional UIM coverage that steps in when the at-fault driver's limits fall short. This coverage allows you to recover additional compensation up to your policy limits, filling the gap between what you're owed and what the negligent driver's insurance will pay.

How UIM Coverage Works

Underinsured motorist claims involve a specific sequence. First, you pursue compensation from the at-fault driver's liability insurance up to their policy limits. Once you've secured that recovery (or confirmed their coverage is insufficient), you can then file a claim against your own UIM coverage for the remaining damages.

For example, if you suffered $250,000 in damages but the at-fault driver carries only Michigan's minimum $50,000 liability limit, you would first collect that $50,000. If you carry $250,000 in UIM coverage, you could then pursue up to $200,000 from your own insurer to cover the difference.

When You Need Underinsured Motorist Protection

UIM coverage becomes critical in cases involving:

• Severe injuries requiring extensive treatment. Spinal cord injuries, traumatic brain injuries, multiple fractures, and other catastrophic injuries can generate hundreds of thousands of dollars in medical expenses—far exceeding minimum liability limits.
• Permanent disabilities affecting earning capacity. When injuries prevent you from returning to your previous occupation or reduce your ability to work, the economic losses extend over your entire working life.
• Multiple victims in the same accident. Michigan's per-accident liability limits are divided among all claimants. When several people are injured in the same crash, each person's recovery from the at-fault driver may be significantly reduced.
• Long-term care requirements. Injuries requiring ongoing therapy, attendant care, or medical monitoring can generate lifetime costs that dwarf typical liability coverage amounts.

Compensation Available Through UIM Claims

Your underinsured motorist coverage can compensate you for damages that Michigan law allows you to recover from negligent drivers, including:

• Pain and suffering. The physical pain and emotional distress caused by your injuries, including anxiety, depression, and loss of enjoyment of life.
• Excess medical expenses. Treatment costs beyond what your Personal Injury Protection (PIP) benefits cover, including expenses that exceed your PIP limits if you selected reduced medical coverage under Michigan's 2019 no-fault reforms.
• Lost wages and diminished earning capacity. Income lost during recovery and the reduction in your future earning ability if injuries prevent you from returning to your previous work or require career changes.
• Permanent impairment and disfigurement. Compensation for lasting physical limitations and visible scarring that affect your appearance and quality of life.

Fighting Insurance Companies That Minimize UIM Claims

Insurance companies—including your own carrier—don't pay underinsured motorist claims willingly. They employ the same tactics they use to deny other injury claims, arguing that your injuries aren't as severe as claimed, that treatment was excessive or unnecessary, or that you share fault for the accident. Some insurers even dispute whether the at-fault driver was truly "underinsured" under the policy's definition.

We've spent decades fighting these battles. Our verdicts and settlements include recovering substantial first-party and third-party insurance benefits when carriers refused to pay what our clients deserved. We know the arguments adjusters make, the experts they hire, and the legal strategies they employ. More importantly, we know how to counter them effectively.

Insurance companies settle differently when they know the attorney across the table is prepared to go to trial. Our reputation for thorough trial preparation and thorough trial preparation means insurers take our demands seriously. That preparation has produced results including a $2 million settlement for a traumatic brain injury victim whose insurer denied all benefits, and numerous jury verdicts against major carriers including Allstate, State Farm, and Farmers when they refused fair compensation.

Michigan's Threshold Requirement in UIM Cases

To recover non-economic damages (pain and suffering) in any third-party auto injury claim—including UIM claims—your injuries must meet Michigan's "serious impairment of body function" threshold. This requires proving an objectively manifested impairment of an important body function that affects your general ability to lead your normal life.

Meeting this threshold is not automatic. Insurance companies routinely argue that injuries don't qualify, that you've returned to normal activities, or that the impairment isn't significant enough. Our attorneys have extensive experience proving threshold injuries through medical records, expert testimony, and detailed documentation of how injuries have affected every aspect of your daily life.

Stacking and Coordination of UIM Benefits

Michigan law prohibits "stacking" underinsured motorist coverage from multiple vehicles you own. Your recovery is limited to the highest UIM limit on any single vehicle covered by your policy, even if you insure multiple cars.

UIM benefits coordinate with other compensation sources. The amount you receive from the at-fault driver's liability insurance reduces your UIM claim dollar-for-dollar. Additionally, if you carry uninsured motorist (UM) coverage and the at-fault driver is completely uninsured, you would pursue that coverage instead—you can't collect from both UM and UIM for the same accident.

Time Limits for Underinsured Motorist Claims

Michigan's one-year notice requirement applies to UIM claims just as it does to all first-party no-fault benefits. You must notify your insurer within one year of the accident that you intend to pursue UIM benefits. Missing this deadline can forfeit your right to recovery.

The three-year statute of limitations for third-party injury claims also applies. However, your UIM claim typically doesn't ripen until you've first exhausted or secured the at-fault driver's liability coverage. Proper timing and sequencing of these claims requires experienced legal guidance.

Why Adequate UIM Coverage Matters

Most Michigan drivers are underinsured for the risks they face. While state law requires only minimal liability coverage, that same minimum doesn't protect you adequately when someone else is at fault. Purchasing substantial underinsured motorist coverage—$250,000, $500,000, or even $1 million—provides critical protection at relatively modest cost.

Review your auto policy today. If you carry only Michigan's minimum coverage or have declined UIM protection, consider increasing your limits. The difference in premium is typically small compared to the financial protection these limits provide if you're seriously injured by an underinsured driver.

Our Approach to UIM Claims in Ann Arbor

We don't file underinsured motorist claims hoping for quick settlements. We build them for trial. That means thorough investigation, comprehensive documentation of all damages, consultation with medical and economic experts to establish the full extent of your losses, and aggressive negotiation backed by demonstrated willingness to let a jury decide if the insurance company won't offer fair compensation.

Our clients don't pay us unless we win. We handle all UIM cases on a contingency-fee basis, advancing the costs of litigation and expert witnesses. You focus on your recovery while we handle the legal battle.

Past results do not guarantee future outcomes. Each case is decided on its own facts.

Frequently Asked Questions About Underinsured Motorist Claims

What's the difference between uninsured and underinsured motorist coverage?

Uninsured motorist (UM) coverage applies when the at-fault driver has no liability insurance at all, or when you're injured in a hit-and-run accident where the driver can't be identified. Underinsured motorist (UIM) coverage applies when the at-fault driver has liability insurance but the limits are insufficient to cover your damages. You cannot collect from both coverages for the same accident—it's one or the other depending on the at-fault driver's insurance status.

Does Michigan require underinsured motorist coverage?

No. Michigan law does not require drivers to purchase underinsured motorist coverage. It's optional coverage that insurers must offer, but you can decline it. However, declining UIM coverage leaves you vulnerable to significant out-of-pocket losses if a negligent driver with minimal insurance injures you seriously. We strongly recommend purchasing UIM limits that match or exceed your liability coverage.

Can I pursue a UIM claim if I was partially at fault for the accident?

Yes, but Michigan's comparative negligence rule will reduce your recovery. If you're found 30% at fault for the accident, your damages will be reduced by 30%. However, if you're more than 50% at fault, you cannot recover any compensation from the other driver or through your UIM coverage. Your degree of fault is often contested, making experienced legal representation essential.

How long does it take to resolve an underinsured motorist claim?

Timeline varies significantly based on injury severity, treatment duration, and the insurance company's willingness to negotiate fairly. Simple cases with clear liability and modest damages might resolve in months. Complex cases involving catastrophic injuries, disputed fault, or insurers who deny legitimate claims can take a year or longer—and may require litigation or trial. We move as efficiently as possible while ensuring we don't settle prematurely before understanding the full extent of your damages.

What if the at-fault driver's insurance company hasn't responded to my claim yet?

You generally cannot pursue your UIM claim until you've first exhausted or secured the at-fault driver's liability coverage. However, if that insurer is unreasonably delaying or if coverage limits are obvious, consult an attorney promptly. We can sometimes accelerate the liability claim resolution or take other steps to protect your rights while the one-year notice deadline for your UIM claim approaches.

Will filing a UIM claim against my own insurance raise my rates?

Michigan law prohibits insurers from raising your rates or canceling your policy solely because you file a claim for benefits you're entitled to receive, including UIM claims. You're pursuing coverage you paid for—it shouldn't be held against you. However, if you have concerns about your specific policy or insurer practices, discuss them with your attorney.