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State Farm finally becoming a good neighbor in Michigan?

July 17, 2012 by Steven M. Gursten

State Farm FINALLY offers underinsured motorist coverage (UIM) in case of a car accident with a driver who does not have adequate auto insurance

What do you do if you are seriously injured in a car crash caused by someone who doesn’t have enough insurance to compensate you for all of the personal injuries suffered?

For thousands of State Farm customers, the answer to this question for years has been “nothing.”

Until recently, State Farm has been one of last few auto insurance companies in Michigan to not protect their customers by offering “underinsured motorist coverage (UIM).” This inexpensive and extremely valuable add-on coverage is already available from most other Michigan No-Fault Insurance companies.

It is so important because it helps make sure you are protected in case of serious injuries caused by a negligent driver who does not carry adequate insurance on their vehicle. As most drivers in Michigan drive around with the minimum bodily injury insurance policy limits allowed by law – $20,000 – and as many people do not have collectible assets if they cause a death or serious personal injury, this left people insured by State Farm in a terrible, vulnerable position.

Here’s a quick example of how Underinsured Motorist Coverage works:

  1. You are a Michigander on a trip to enjoy “Pure Michigan,” driving or riding in a car that is properly insured under Michigan’s No-Fault law.
  2. A negligent driver, who was texting and blew a stop sign, t-bones your car and sends you to the hospital by ambulance.
  3. You suffer serious injuries that qualify under Michigan’s threshold requirement of “serious impairment of body function.”
  4. With the help of the auto accident attorneys at Michigan Auto Law, you make a claim with the distracted driver’s insurance company for pain and suffering damages because of the herniated disk and the traumatic brain injury caused by the whiplash you suffered in the crash.
  5. The distracted driver was properly insured, but only carried Michigan’s minimum liability policy limits of $20,000. This is not nearly enough to make up for the harms & losses you have endured through months of testing, therapy, injections and other treatment; not to mention the six months from work and time with your friends and family you have missed.
  6. LUCKILY, you carry UNDERINSURED MOTORIST COVERAGE on your own Michigan No-Fault policy of $250,000.
  7. Your attorneys make an underinsured motorist claim on your own Michigan No-Fault policy for $230,000 (Your insurance only gets to subtract what was paid by the negligent driver’s No-Fault insurance company).
  8. Your No-Fault insurance company agrees to pay your underinsured motorist policy limits and your No-Fault car insurance premiums are NOT increased!

This is the good news. State Farm NOW OFFERS THIS COVERAGE! So, if you are a State Farm customer in Michigan, or for that matter nationwide and you live in a state that does not have mandatory underinsured motorist coverage, call your State Farm agent and make sure you get this valuable add-on coverage now.

You can also call and speak to an experienced auto accident lawyer at Michigan Auto Law for receive free advice on how to make sure your State Farm auto insurance policy includes UIM. Our attorneys can help you understand what Michigan No-Fault insurance coverage you currently carry by helping you read your “Declarations Page,” as well as suggest the type and limits of coverage you should carry, including underinsured motorist coverage.

– This blog post was written by attorney Brandon Hewitt.

Related information to protect yourself:

How much underinsured motorist coverage is needed?

Michigan Auto Law is the largest law firm exclusively handling car accident, truck accident and motorcycle accident cases throughout the entire state. We have offices in Farmington Hills, Detroit, Ann Arbor, Grand Rapids and Sterling Heights. Call (248) 353-7575 to speak with one of our lawyers.

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