STATE LAW – MICHIGAN LIBRARY – GUIDE 05
Michigan Uninsured & Underinsured Motorist Coverage
Michigan does not generally require automobile policies to provide UM or UIM coverage. When the policy includes it, recovery is principally contractual and depends on the exact definitions, limits, exclusions, notice provisions, and settlement conditions.
UM / UIM
Optional coverage means the policy language is central
Unlike mandatory PIP, Michigan UM/UIM coverage is generally purchased by contract. The first question is whether the policy provides the coverage; the second is who qualifies as an insured and what conditions govern recovery.
Read the complete endorsement
Review the declarations and UM/UIM endorsement together. Important provisions can include the definition of an uninsured or underinsured vehicle, resident-relative status, occupancy requirements, hit-and-run or physical-contact provisions, offsets, anti-stacking language, notice requirements, consent-to-settle requirements, limitations periods, and arbitration clauses.
Rory and Wilkie make drafting details consequential
Michigan Supreme Court decisions including Rory v. Continental Insurance Co. and Wilkie v. Auto-Owners Insurance Co. emphasize enforcement of unambiguous insurance-policy language. Because UM/UIM is not generally a mandated Michigan auto coverage, courts do not simply import the public-policy rules governing compulsory no-fault benefits into an optional UM/UIM contract.
Do not release the tortfeasor before reviewing the UM/UIM policy
A liability settlement can affect contractual UM/UIM rights if the policy contains notice, consent, subrogation, or exhaustion provisions. Before signing a release, obtain and review the UM/UIM endorsement and communicate with the first-party carrier as required by the contract and applicable law.
Evidence still drives the underlying claim
UM/UIM ordinarily requires proof that the insured is legally entitled to recover damages from an uninsured or underinsured motorist. Preserve liability evidence, medical proof, wage-loss evidence, and all insurance information just as carefully as in a third-party liability case.
Authorities
Primary Michigan authority for this topic
Use the current statute, controlling decisions, and the operative policy before legal reliance.