If the accident resulted in an injury to a person, the involved drivers should file a report with the local police station as soon as possible. If the accident only involved property damage, a police report is only required if the owner of the other car is not present – i.e., you hit a parked car.
If the other owner is present, exchange your insurance and contact information. Insurance policies frequently require that you file a police report within 24 hours, or you may not be eligible for certain benefits under the policy.
Injury and Property Damage Coverage (BI/PD)
Michigan’s no-fault insurance protects insured persons from being sued as the result of an automobile accident, except in certain situations. This includes when the injured party does not have enough medical coverage to pay for treatment or if a person was seriously injured in the accident under the amended no-fault law, an at-fault driver can be sued for the medical expenses of the injured party. This bodily injury coverage of your automobile insurance policy will pay up to your coverage limit amounts if you are found legally responsible for damages in the following situations:
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- You cause an accident in Michigan in which someone is seriously injured, or permanently disfigured.
- You are involved in an accident in Michigan with a non-resident who is an occupant of a motor vehicle not registered in Michigan.
- You are involved in an accident in another state; or
- For up to $3,000 if you are 50% or more at fault in an accident which causes damages to another person’s car which are not covered by insurance.
- You cause an accident where the injured person does not have medical coverage on their auto policy.
Therefore, under the amended no-fault law it is recommended that a driver and/or owner purchase 1 million dollars of bodily injury coverage.
Personal Injury Protection (PIP)
If you are injured in an auto accident, PIP will pay all reasonable and necessary medical expenses for your lifetime up to the maximum coverage amount selected in the policy. PIP will pay wage loss and replacement services for up to three years after the date of the accident. There are additional limits on the amount of attendant care, which is care provided in your home to help you with daily living activities while you are recovering from an accident.
The PIP coverage options are:
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- Unlimited coverage.
- $500,000 per person per accident.
- $250,000 per person per accident.
- OPT out of coverage if you have qualified health insurance.
It is recommended that policy holders continue to purchase unlimited medical coverage. If lower amounts of coverage are selected, it is recommended that you purchase coordinated auto coverage to help personal medical coverage in the event of a serious accident.
Optional Coverages
There are several types of coverage that you can choose to buy in addition to the required no-fault insurance. The most common types of extra insurance are described below.
1. Collision and Comprehensive Insurance
No-fault insurance does pay for repairs to your car if it is damaged in an accident unless you have purchased collision coverage. If your car is properly parked and hit by another car, the other driver’s no-fault coverage will pay for the damage to your car. Except for this one situation, the only kinds of auto insurance that will pay for repairs to your car are collision and comprehensive coverage.
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- Collision coverage pays for repairs to your car when it is damaged in a crash. There are three basic kinds of collision insurance to choose from: limited, standard, and broad form. The deductible mentioned is the amount of money you agree to pay toward the cost of repairs before the insurance company steps in and pays the remainder. The larger the deductible, the lower the cost of your collision insurance.
- Comprehensive insurance pays for your car if it is stolen or for repairs if it is hit by a falling object, collides with an animal, or is damaged in a fire, flood or by vandals.
If you have an older car, you may not want collision and comprehensive coverage. If your car is financed, the company that loans you the money will require that you buy collision and comprehensive coverage to protect their loan.
2. Limited Property Damage Liability Insurance – “Mini-Tort”
Most companies offer coverage for the $3,000 liability you may be responsible for in an accident if you are more than 50% at fault.
3. Towing and Rental Car Coverage
Towing and Rental Car Coverage is available from most insurance companies and generally covers or reimburses the cost of towing and/or a rental car for covered events (accident, breakdown, flat tire, etc.). The cost is usually small in relation to the total policy premium.
Many insurance agencies offer memberships into clubs that offer these types of benefits to their members. These clubs generally offer limited reimbursement for the same types.
Uninsured Motorist & Underinsured Motorist Coverage
An uninsured motorist is someone who does not have any car insurance or has insurance coverage that doesn’t satisfy state-mandated minimum liability requirements. Uninsured coverage may also come into play if the other driver’s insurance company denies their claim or is not financially able to pay it. A hit and run driver also counts as uninsured as it relates to bodily injury to an accident victim.
Underinsured motorist coverage is insurance protection that can help cover the cost of your medical bills caused by a driver who is at fault but who is carrying coverage limits too low to cover your expenses or bodily injury to your injured persons if you are seriously injured.
Underinsured drivers will often purchase only the minimum amount of insurance required by law, which in some states isn’t much. For example, Michigan only requires drivers to carry $50,000 per person and $100,000 per incident of bodily injury liability coverage if they OPT out of the required $250,000 of bodily injury coverage. If a driver with low coverage limits hits you and causes a serious injury, it is possible that the available insurance coverage will not be adequate to cover your damages.
If you are involved in an accident where the “at fault” driver lacks adequate liability insurance, your own underinsured motorist coverage will cover your expenses.
Personal Injury Attorney Services in Michigan
Logeman, Iafrate & Logeman, P.C. in Ann Arbor is a leader in Michigan no-fault insurance law. If you have been injured in a car accident it is extremely important to have an experienced lawyer review any injury claim resulting from a car crash. If you have questions or need help with your injury claim, call and schedule a Free Consultation as soon as possible.