Is Uninsured Motorist Coverage Redundant in MI for No Fault Liability Only

Discussion in 'Auto Insurance Forum' started by heritage111, Jun 5, 2017.

  1. heritage111
    Offline

    heritage111 New Member

    Posts:
    2
    Likes Received:
    0
    Hello everyone, I am a new agent in MI and I am a little confused about the benefits of Uninsured Motorist coverage when related to minimum liability only coverage.

    So I understand that the purpose of UM is to provide medical coverage that would normally be paid from the liability portion of the other (at fault) uninsured person.

    With Michigan being a no fault state with PIP benefits uncapped, why would someone pay extra for Uninsured Motorist coverage? Isn't the insurance company on the hook for any medical costs already?
     
  2. heritage111
    Offline

    heritage111 New Member

    Posts:
    2
    Likes Received:
    0
    So no responses? I find it hard to believe I'm the only one with this question.

    From all the searching I have done no one even hints around the over lap of coverage. How am I to advise a client when its not clear to me?
     
  3. LostDollar
    Offline

    LostDollar Well-Known Member

    Posts:
    1,078
    Likes Received:
    7
    State:
    Kansas
  4. VolAgent
    Online

    VolAgent Well-Known Member

    Posts:
    13,169
    Likes Received:
    14
    State:
    Tennessee
    Just found the same link as LostDollar.

    What if your Michigan driver happens to drive in another state, what happens then if they don't have uninsured motorist?
     
  5. Web320
    Offline

    Web320 Member

    Posts:
    19
    Likes Received:
    0
    State:
    Michigan
    The uninsured/underinsured portion of the policy will compensate the policy holder (or beneficiary) for pain and suffering and excess wage loss. If I recall correctly, P&S is not covered by PIP.

    I just pulled up my policy and for $250k/$500k of uninsured motorist coverage, it is $1.25 a month (the underinsured motorist coverage is about the same). Pretty marginal in the grand scheme of things when talking about auto insurance in Michigan, but I get where you see potential redundancy.
     
Loading...

Share This Page