Category: No Fault Insurance

Most Michigan motorists purchase automobile insurance because state law makes it a requirement. Drivers seldom stop to think about how beneficial having coverage can be if they were to have a crash. It can protect you from personally having to empty your pockets for property damage and can save you from having to fork out thousands of dollars in unexpected expenses. There’s no guarantee that your insurer will honor your claims, though.

There are a few reasons that your insurance company may deny your claim.

They may do so if they find that you violated the terms of your policy or the law. An insurer may cite the former as the reason for denying your claim if they find that your misrepresented information when you took out your coverage.

Insurers may also deny your auto insurance claim if you file for benefits while under the assumption that you still have a specific type of coverage that you no longer have. One example of this is if you file a claim requesting that your insurer cover your property damage. If you terminated your collision coverage a long time before the accident occurred, then they’ll likely deny your claim.

Your claim may also end up getting denied if your insurer finds that you exhausted your policy limits. There are generally caps on the different types of coverage that you have. You may only be able to recover up to a certain amount in damages per occupant or accident. If you exceed those limits, then it’s likely that your auto insurer will deny your claim.

While many auto insurance companies out there may deny their customer’s claim for valid reasons, it’s not uncommon for there to be some bad apples in the bunch that unlawfully do so for invalid ones. A no-fault insurance attorney can advise you of the next steps you’ll want to take in your Michigan case if your auto carrier denied your Rochester accident claim.

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.

Michigan’s no-fault insurance model has meant that individuals pay high premiums for the coverage required by law. One of the components that was especially costly was the personal injury protection because people had to pay for unlimited lifetime medical benefits. On July 1, 2020, residents of this state were able to change their coverage from that unlimited option to lesser coverage, which saved some people money on their premiums.

The no-fault insurance system in Michigan was meant to eliminate the need for personal injury lawsuits for people who suffer injuries in accident. Instead, these victims turn to their own insurance companies for coverage for their injuries.

With the change in the law, people have to determine what type of coverage best suits them. They can keep the unlimited coverage per person, per accident, which is the same as what they had under the old law. Other options set a monetary limit per person, per accident.

Under the new law, the minimum coverage is $50,000, but some people might be able to be excluded from coverage. These include those who have health insurance policies that cover automobile accident injuries and that have deductibles of less than $6,000. The option for $50,000 maximum requires the person to meet specific qualifications and be on Medicaid. Individuals who meet certain eligibility requirements and who have Medicare Parts A and B can opt completely out of personal injury protection.

The change in the law might have an impact on how people with catastrophic injuries address the damages of a crash. Discussing your case with your attorney can help you to determine what options you have to address the financial impacts of the accident.

Just because you have auto insurance doesn’t necessarily mean that it will protect you should you have an accident. Ultimately, it’s up to your auto insurance company’s adjuster to decide whether they will approve your claim. An insurance company may deny your request completely or pay only a portion of your damages.

There are a variety of reasons that you and your insurance company may not be on the same page. They may take the position that you haven’t suffered any coverable damages. On the other hand, they may agree to pay a portion of your claim, but tell you the amount that you’re requesting is over your policy amount. They may also disagree with how much a bill is.

The National Association of Insurance Commissioners (NAIC) is the model that many states use in regulating their insurance industry. Under most state regulations, plan administrators must accurately represent what’s in your policy. It’s unlawful for them to change your policy arbitrarily without first informing you that they’re going to do so.

It’s generally against the law for insurance companies to pressure you into agreeing to a settlement. State and federal regulations require insurance companies to process claims quickly. How each state defines that word can vary considerably.

An insurance company shouldn’t drag out your claim’s processing time by asking you to fill out unnecessary paperwork. If an insurance company denies or delays processing your claim, then they must provide you with a reasonable explanation for why that’s the case. If they make an offer that is substantially lower than the claim amount, then you do have a right to appeal the decision by filing a counterclaim in Michigan court.

If you have a valid insurance claim that has been denied by your insurer, you may be eligible to sue your automobile insurance company. Whether you’re able to do so is contingent upon the reasons that your auto carrier gave for denying your claim. An attorney here in Rochester can evaluate your case and see whether filing a lawsuit is warranted.

Michigan is a no-fault auto insurance state. This means that if you get into an accident, then you can file a claim with your insurance company under your personal injury protection (PIP) coverage. You’re unable to sue the other motorist who may have struck you in a no-fault state like Michigan.

Insurance laws vary by state. There are many states require motorists to purchase no-fault insurance. Others don’t even offer drivers the option to do so. In states like Kentucky, New Jersey and Pennsylvania, motorists have the option to buy one type of insurance versus another.

Some states require drivers to purchase coverage that covers passenger claims. Other jurisdictions leave passengers to fend for themselves.

It’s mandatory in no-fault states like Michigan for motorists to have PIP coverage. It’s difficult for drivers to file lawsuits unless damages reach a certain monetary point or their pain surpasses a specific threshold though. This means that motorists can only sue in no-fault states like this if their medical expenses exceed a certain amount. They may also be able to do so if their injuries are deemed as serious by the state.

In other states that aren’t no-fault states, drivers are given the option to purchase PIP coverage. Motorists in states who do give their drivers the choice to have this type of insurance can generally sue for compensation regardless of who caused the accident. Drivers who purchase PIP coverage can generally sue for both their injuries and their pain and suffering.

Individuals who are involved in auto accidents are generally entitled to monetary damages for their injuries, lost wages and other expenses. How much you may be awarded varies depending on the severity of your injuries, your insurance limits and the laws in your state. An attorney here in Rochester can advise you of your right to seek compensation in your Michigan auto accident case.

Auto collisions happen every day in Michigan. Motorists often file claims with their insurance companies in the hope of recovering money to fix their car, to cover their medical bills and/or for lost wages. The onus to decide who gets paid falls on the insurance company’s shoulders. Judges often side with insurers when they’re tasked with deciding how much a claimant should receive following an accident.

There are instances, though, in which insurance companies fail to act reasonably. They sometimes deny a valid claim. You, as the insured, are generally entitled to file a lawsuit against the insurance company in these instances. You must be able to prove that your insurance company engaged in some type of bad faith practice that violates Michigan state statutes if you plan to successfully sue them.

Several elements comprise a bad faith claim. The steps that the insurance company took generally need to have been unreasonable or done without proper cause.

In some jurisdictions, a claim may only be considered a bad faith one if an insurance company denied liability when it wasn’t all that debatable in the first place. Bad faith claim denials are viewed much like breaches of contracts in some jurisdictions.

One thing that most jurisdictions do agree about is that anytime an insurance company has failed to demonstrate a duty of good faith and fair dealing, then they’ve likely acted in bad faith.

An insured person must be able to demonstrate that their insurance company used both unfair and deceptive tactics if they’re planning to file a bad faith claim. An example of a potentially unfair action may be if an insurance company asks their insured to file a court case for restitution. Another might be if an insurer doesn’t provide a prompt reason for the denial of the claim.

If an insurer fails to provide a fair settlement despite there being a clear proof of liability or they deny a claim without investigating it, then they may also have employed bad faith insurance tactics.

It’s not uncommon for Michigan residents to have your auto accident claim denied and to receive no justification for why it happened. A attorney can follow up with your insurer to see why your claim was denied and, if necessary, help you file a lawsuit.

In Michigan, victims of serious or catastrophic vehicle accidents feel confident that no-fault insurance claims will cover their medical expenses. Most people don’t give the matter much thought. Instead, they assume that insurance carriers always operate in good faith.

Unfortunately, this is not typically the case. In truth, most no-fault insurance carriers will do everything they can to delay or avoid paying accident claims. Our team of injury attorneys has seen this happen on many occasions.

To help you receive the full amount of benefits you deserve from your no-fault insurance provider, we urge you to watch out for the following practices by insurance companies:

  • Misrepresenting policy language to keep you from filing a claim
  • Using delay tactics that encourage you to abandon your claim or accept a low settlement
  • Disputing some of your injury-related medical treatments or bills
  • Denying outright that you have a valid claim
  • Using contract or legal language that deliberately confuses injured parties
  • Asking you to provide a recorded statement about your injuries or the accident
  • Making thinly veiled yet threatening statements to discourage you from pursuing your full benefits

These are just a few of the ways most insurance providers work to avoid paying an accident claim. When you suffer only minor property damage in a crash, it may not be a big problem. However, when you are dealing with severe injuries in the wake of an accident, you need all the compensation to which you’re entitled.

Our team encourages you to reach out for legal assistance if you wish to maximize your compensation and other benefits. Lawyers are accustomed to dealing with no-fault insurance providers and can make sure you do not fall victim to bad faith practices. To learn more, continue reviewing our injury pages.

Michigan makes it relatively easy to work out how to recover from a car accident. The state makes it a requirement to have a form of insurance that makes it irrelevant who caused a crash or how it was caused beyond a possible criminal act. But things are changing with a new law from Lansing.

No-fault insurance reform has been eyed by lawmakers for years and was finalized with the governor’s signature last summer. One of the hallmarks of the new legislation is a reduction in the flat fee paid by drivers involved in car accidents.

But some observers are concerned that accident victims may see no savings and perhaps end up paying more. Insurance companies may be looking to lock in savings by raising rates before the law takes effect.

“Insurance companies are raising people’s car insurance rates today, in anticipation of the new law,” said a Michigan lawyer specializing in the consequences of car accidents.

Drivers are being offered more choices in coverage. Car and truck owners in the Wolverine State will be able to decide if they want unlimited coverage of personal injury in the event of a catastrophic crash. Those who choose to keep this option will see a savings from the Michigan Catastrophic Claims Association (MCCA).

Anyone with questions about the right type of no-fault insurance may consult an attorney on the matter. Legal representation may also be a vital part of a claim in the event of a car accident. A lawyer can help smooth the process of moving on from a crash.

After a car crash that leaves you or a member of your family with serious injuries, you will definitely feel grateful for your no-fault insurance policy. While many people in Michigan bemoan the expenses associated with no-fault insurance, for those who need medical coverage, the protections of no-fault insurance are invaluable.

In the aftermath of a major collision, your insurance provider will have to cover your medical expenses, regardless of who caused the crash. In some cases, they may offer you a lump-sum settlement. Before you accept their offer, you need to do some careful research to determine whether the amount they offer you is reasonable given the extent of the injuries involved.

There’s no cap on no-fault benefits unless you settle

Unlike many states, Michigan has insurance laws that do not limit the amount of medical coverage someone hurt in a crash can receive. This is particularly beneficial for those who suffer spinal or brain injuries in a motor vehicle collision. As long as you continue to need the benefits and care, the company will have to compensate you.

However, if you do agree to a settlement, that potentially limits or ends the company’s liability for your future medical needs. You need to very carefully review a settlement offer before you sign it because doing so could actually leave you financially vulnerable in the future.

Compare the amount of the settlement to your current medical expenses and lost wages, and then extend those figure out through the likely duration of your life and medical condition. Countering or refusing the offer can sometimes be in your best interests, even if you do feel like you need the insurance funds as soon as possible.

Under Michigan’s no-fault insurance system, drivers can get basic coverage from their insurer when they’re involved in an accident regardless of whose fault the crash was. This no-fault system allows drivers to obtain compensation for medical care, lost wages, and in some cases, damages to their vehicle fairly quickly and easily compared to drivers in states that don’t have no-fault insurance. However, the coverage is limited.

Drivers who weren’t at fault (or at least less than 50% at fault) for an accident have the right to file a mini-tort claim against the at-fault driver if the damage to their vehicle is so extensive that their insurance won’t cover it.

There are limitations on mini-tort claims. For one thing, they can only be used for vehicle damage — not for medical expenses. Further, the maximum amount you can file a mini-tort claim for is $1,000. If a person is seeking that much, they must provide evidence that the damage to their vehicle will cost them at least $1,000 to fix.

To qualify to file a mini-tort claim, a driver must meet the following requirements:

  • Their vehicle must be damaged.
  • Their vehicle must be insured, but they must have either no collision coverage or standard collision coverage with a deductible.
  • They must know who the at-fault driver was.

Anyone who’s been in a crash knows that even seemingly minor physical damage can be very expensive to have repaired. If you are considering filing a mini-tort claim to help cover your car repair expenses, an experienced attorney can provide information and guidance regarding your legal options.

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