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

[heritage111]

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?

 

[heritage111]

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?

 

[LostDollar]

All the searching I do for MI says the minimum liability policy has limits of 20/40/10.

https://www.michigan.gov/documents/cis_ofis_noflt_gd_25094_7.pdf

 

[VolAgent]

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?

 

[Web320]

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.