Pros and cons of having no-fault insurance if you have a crash

On Behalf of | Aug 28, 2020 | No Fault Insurance |

If you have a driver’s license, then it’s likely that the jurisdiction that you live in requires you to have automobile insurance. Most drivers think of this coverage in terms of the protections it offers if they become involved in a car crash. You may wonder how that works in a no-fault insurance state like Michigan, though.

Here in the Great Lakes State, you use your insurance coverage to cover any damages resulting from accidents that you may have, whether you’re to blame for it or not. This approach to doing things contrasts with an at-fault state, whereas you’d have to prove that another motorist was liable for your crash and file a claim with their insurance to recover damages.

Many individuals who live in no-fault states appreciate not having to prove that someone else was responsible for causing a car crash to recover medical costs, lost wages, funeral costs and other accident-related damages. It can speed up the time it usually takes to receive a response on a claim if you don’t have to fight over liability.

There are downsides to living in a no-fault insurance state like Michigan, though. Filing a claim with your auto carrier can feel uncomfortable, mostly if you weren’t responsible for causing the crash. Doing so may result in an increase in your insurance premium or even a termination of your policy.

You also lose the opportunity to hold a motorist who may leave you maimed civilly liable for their actions when you live in a no-fault state. The upside to this is that prosecutors may still charge a motorist with a crime depending on the case’s circumstances.

Not having to prove liability in your accident case to receive a reimbursement may seem ideal. What you may not realize is that insurance companies are businesses. It’s in their best interest to pay out as little as they can to settle your case. They may deny your claim or try and get you to agree to a settlement long before you finish receiving medical treatment. A no-fault insurance attorney in Rochester can help you deal with your insurer’s nagging so that you can focus on getting better and recover what they owe you.

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