Uninsured and Underinsured Motorist Coverage in Michigan: What Happens If the At-Fault Driver Has No Money?
A man was driving through Muskegon County in a work truck when another driver ran a stop sign and hit him. The truck rolled. He died at the scene. The driver who caused the crash had almost no insurance. That’s where this case actually begins.
Most people think the driver who caused the crash is where the money comes from. That only works if the coverage is there. In serious accidents, it usually isn’t.
That creates a different problem. You can have clear fault, a severe outcome, and still face a situation where the available insurance does not come close to covering what happened. This is where the situation changes.
Real Case: Fatal Crash With Limited Insurance Coverage
“We had a case recently involving a gentleman who was driving down a two-lane highway in the Muskegon Fremont area.”
He was in a work-owned truck, traveling through an intersection when another driver failed to stop or yield. The impact was direct. The truck rolled. He left behind a family. What followed was not just a legal process. It was figuring out available options.
Buchanan was brought in to represent them and work through what options were still available after the crash.
Why the At-Fault Driver's Insurance Was Not Enough
“The young man that blew through the stop sign had very little insurance; he had the smallest allowable policy.”
In Michigan, drivers are allowed to carry low liability limits. Those limits may meet legal requirements, but they do not reflect the cost of a serious crash. When an accident involves severe injury or loss of life, those limits are reached immediately.
“There was no money from the at-fault driver.”
Once a policy is exhausted, there is nothing further to recover from that driver. The legal system can establish fault. It cannot create coverage that does not exist.
That is where most cases stop unless something else exists. Buchanan’s role at this point is to identify whether any other sources of coverage exist beyond the at-fault driver.
What Is Underinsured Motorist Coverage and How Does It Work?
“It was important in this case to look at the insurance policy covering the truck to see if it had underinsured motorist coverage.”
Underinsured motorist coverage comes from your own policy. The next step was not the other driver. It was the policy on the truck. It steps in when the driver who caused the crash does not have enough insurance to cover what happened. Instead of relying on their limits, you are turning to coverage that was already in place on your side.
“We needed to see if that policy provided protection in an instance like this where there was insufficient coverage.”
This applies in serious situations, including major injuries and wrongful death. It can be attached to your personal auto policy or to a vehicle involved in the crash, including a work vehicle. In this case, the coverage was tied to the truck.
“Luckily, they did have underinsured motorist benefits.”
It is written into policies quietly, but it only becomes visible when the other side runs out of coverage.
How Underinsured Motorist Coverage Helped This Family
“Luckily, they did have underinsured motorist benefits.”
That one detail changed everything that came next for his family. The policy on the truck included underinsured motorist coverage. Instead of the situation ending with the at-fault driver’s limited insurance, there was another layer of protection already in place. Because of that, there were financial resources available after his death.
“Because the truck had this additional coverage the family had ample financial resources to take care of them after his passing.”
It did not change what happened. It changed what the family had to carry afterward. Same accident. Different outcome, based on what was written into the policy.
Do Most People Have Underinsured Motorist Coverage?
Most people don’t have this coverage. It’s optional in Michigan. It’s easy to decline when nothing has gone wrong yet. In a case like this, that decision would have changed everything.
If you are still unsure whether calling a lawyer now makes sense, these articles answer the next questions most people ask after a crash.
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What Should You Do After an Accident With an Uninsured or Underinsured Driver?
Do not assume the case ends with the other driver’s policy. That is where most people stop. It is also where important options get missed. Pull every policy connected to the situation:
- Your personal auto policy
- The vehicle involved in the crash
- Any employer policy if a work vehicle was involved
Coverage is not always where people expect it to be. It can sit in places that are easy to overlook if you are only looking at the at-fault driver. Look specifically for uninsured and underinsured motorist coverage. That is where additional protection may exist when the other driver’s policy falls short.
Before accepting any policy limits or signing anything, slow it down and have it reviewed. Once limits are accepted, that door is usually closed. At this stage, the job is simple: identify every possible layer of coverage before making a decision. That review determines whether the case actually has room to move.
We’ll listen, give you honest answers, and guide you every step of the way
so you can focus on healing, not fighting.
How Buchanan Firm Helps in These Cases
In cases like this, the first step is figuring out where coverage actually exists. That starts with a full review of every policy connected to the situation. Not just the at-fault driver, but the vehicle involved, personal policies, and any employer coverage that may apply.
From there, the focus shifts to identifying coverage that is easy to miss. Policies are not always written in a way that makes this obvious, and small details can change what is accessible. Once the coverage is mapped, the claim is structured around it. That means aligning the case with the policies that can respond, not just the one that caused the crash.
Throughout the process, the family is not left to figure it out on their own. Each step is explained clearly so decisions can be made with a full understanding of what is available and what comes next. The process stays focused on one objective: identify coverage, apply it correctly, and move forward with clarity.
Frequently Asked Questions About Underinsured Motorist Coverage
These are the questions most people ask after realizing the other driver’s insurance is not enough.
What happens if the at-fault driver has minimum insurance in Michigan?
Minimum coverage often runs out quickly in serious accidents. When that happens, recovery depends on whether additional coverage exists on your side.
Do I need underinsured motorist coverage in Michigan?
It is not required, but it fills a gap that standard liability limits often leave behind. Without it, your options can be limited if the at-fault driver does not carry enough coverage.
What happens if the at-fault driver has no insurance at all?
The claim shifts away from the at-fault driver and toward any uninsured motorist coverage that may exist on your side. If that coverage is not in place, recovery becomes much more limited.
Can I use my own insurance after a crash someone else caused?
Yes. Depending on your policy, your own coverage may apply even when another driver is at fault. This is where uninsured or underinsured motorist coverage becomes relevant.
Does underinsured motorist coverage apply to work vehicles?
It can. Coverage may be tied to the vehicle involved, including employer-owned vehicles, depending on how the policy is written.
How much coverage should I carry?
It should reflect the level of protection you would want in a serious accident. Lower limits reduce cost, but also reduce what is available if something significant happens.
Is underinsured motorist coverage expensive?
It is typically a small addition compared to the overall policy cost. Many people decline it to save on premiums without realizing what they are giving up.
Can I still file a claim if the other driver only has minimum coverage?
Yes. When the at-fault driver’s policy is not enough, underinsured motorist coverage may allow for an additional claim through your own policy.
What if I don't know what coverage is in my policy?
That is common. Policies can be difficult to interpret. Having it reviewed can clarify what is actually available before any decisions are made.
Summary
When the at-fault driver’s coverage runs out, the next step depends on what is written into your own policy. Underinsured motorist coverage can provide critical financial protection in serious injury or wrongful death cases.