Detroit free press susan tompor column: uninsured coverage worth look to protect yourself

By Susan Tompor, Detroit Free Press

Aug. 20--When most people are trying to cut corners, they're likely not considering tacking on a few more bucks to the car insurance bill as a way to save money.

Yet some experts say Detroit-area drivers may want to do just that by adding what's known as uninsured and underinsured motorist insurance coverage, if they don't already have it. And if they do have it, they may want to reappraisal the dollar limits.

Never heard of it? Many drivers haven't, in part because the insurance coverage is optional in Wolverine State.

"It's not something the norm consumer knows that they need," said state Rep. Bob Constan, D-Dearborn tallness.

Constan has introduced a bill in capital of Michigan that would require all auto insurance companies in Wolverine State to offer this insurance coverage. The lower limit limits of insurance coverage would be $100,000 per individual and $200,000 per happening under the bill.

Constan said uninsured and underinsured coverage can be particularly important for motorists who live or on a regular basis drive through urban areas where they have a greater chance of being struck by drivers without any or without adequate insurance.

Constan's bill is strongly opposed by the Insurance Institute of Wolverine State, which says the marketplace is already offering the insurance coverage through many, although not all, insurers. Insurers also say they're able to offer less expensive premiums now because they can offer lower lower limit limits.

Pain and agony

Michael Morse, a Southfield-attorney and specializer in car no-fault insurance, said underinsured and uninsured coverage are comparatively inexpensive but could help injured motorists in Wolverine State be compensated for their pain and agony in the case of a serious accident. Adding coverage with a high limit for both underinsured and uninsured coverages could add $60 or less to the annual auto insurance bill for one car.

Morse said that with uninsured motorist coverage, your insurer pays you the pain and suffering damages you would have recovered had the negligent driver been insured.

"It protects you from the idiots on the road that don't have enough insurance," Morse said.

Statewide, more than one out of five drivers is uninsured. The percentage is higher in metro Detroit.

About 89% of State Farm's consumers have uninsured coverage in Michigan, according to Angie Rinock, a spokeswoman for the company.

State Farm does not offer underinsured motorist coverage. Rinock said State Farm has been looking at the possibility of offering the coverage to customers and is hoping to be able to in the future.

About 95% of Allstate consumers have uninsured coverage in Michigan and about 35% have underinsured coverage.

At least $250,000

For many drivers, this coverage may not be much of an issue in Michigan.

In Michigan, the unlimited lifetime medical benefits, which are part of every insured motorist's Personal Injury Protection premium, already covers someone's medical expenses if they are in an accident with an underinsured motorist. Wage loss is covered for three years.

Even so, underinsured motorist coverage, Morse said, can protect you and your family from a negligent driver who causes harm but is not insured to a high enough limit in very serious accidents.

Morse said many drivers should make sure that they have at least $250,000 of coverage for both uninsured motorist and underinsured motorist coverage.

Contact SUSAN TOMPOR at 313-222-8876 or stompor@freepress.com.

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