The insurance coverage that an insurance lawyer recommends

This week, we began a three-week-long giveaway sweepstakes to bring awareness to the dangers of texting while driving in Michigan – as well as the importance of buying the right auto insurance. If you visit our Facebook page, you can enter to win  $1,032.  The only requirement is to watch a 30 second  video on distracted driving and filling out the entry form.

Why a $1,032 check? The Insurance Institute of Michigan’s December 2010 data states that the average auto insurance premium in Michigan is $1,032.02.

The winner can use the money however he or she wants. But as an insurance laywer, I hope the winner will use it to buy the right kind of auto insurance this  year.  Our  campaign isn’t just about distracted driving. It’s also to get the word out on just how many people are uninsured on our roads today and how critical auto insurance with Uninsured motorist coverage (UM) is to properly protect yourself.

As I blogged about before, about 50 percent of Detroit drivers are driving without any auto insurance, as reported in the Detroit Legal News. And in Michigan, about 19 percent of drivers have no auto insurance, according to a news release by the Insurance Research Council.

With that, I’d like to summarize additional coverages you can buy along with your mandatory Michigan No-Fault insurance. These insurance coverages provide more protection in case of a serious car accident – especially if that accident is with someone who doesn’t have No-Fault insurance.

Uninsured and underinsured motorist coverage (UM/UIM) provides a valuable source of legal recovery after a car accident, when someone is injured by another driver who is uninsured or does not have adequate insurance.

Many auto insurance companies don’t inform their policy holders of these important options.

With UM and UIM, an injured person turns to his or her own auto insurance company to pay what would have been recovered from the at-fault driver, had that person been properly covered.

This coverage is very inexpensive. As I always say, for the price of a movie and popcorn, you can make sure your family is covered in case of a crash with an uninsured driver.

Remember, in most cases, your No-Fault insurance does not pay for repairs to your car if it is damaged in an accident. But collision coverage pays for repairs to your car when it is damaged in a crash.

There are three basic kinds of collision to choose from – limited, standard and broad form. These have varying deductibles (A deductible is the amount of money you agree to pay toward the cost of repairs before the insurance company steps in and pays the remainder).

Comprehensive insurance pays for your car if it is stolen or for repairs if your car is hit by a falling object, collides with an animal or is damaged in a fire, flood or by vandals’. Think of the insurance commercials that show objects falling onto cars with a comedic spin.

You  may be sued because of an accident. If this happens, your No-fault policy will pay up to the amounts shown in the residual liability section.

But courts sometimes award more than these amounts. If this happens, you would be responsible for paying the amount not covered by your insurance policy. Many people buy higher limits if liability insurance to protect themselves.

The No-Fault law protects insured people from being sued as a result of an auto accident, except for special circumstances. For car damage, a person can only be sued for up to $500 – if you are 50 percent or more at fault in an accident which causes damage to another person’s car. This is called the Michigan mini tort law.

But most companies offer limited property damage liability insurance to cover this $500 liability.

If you’re looking to buy insurance, take a look at our list of the top 4 Michigan auto insurance companies and tips for buying the right auto insurance.

We also have a book called What Auto Insurance Is Right For Me? It has the 8 essential questions you must ask your insurance agent before buying No-Fault insurance.

We hope all of these insurance tips help. Again, sign up for our distracted driving sweepstakes on Facebook! You could win a $1,032 check, and we really hope the winner will use the money for a year’s worth of auto insurance.

- Steven Gursten is recognized as one of the nation’s top insurance lawyers handling serious auto accident cases and No-Fault insurance litigation. He writes about the importance of Michigan’s No-Fault law, and is available for comment.

Related information:

3 potential cases after an auto accident

Guide to Michigan No-Fault law

Michigan’s 6 worst auto insurance companies

Michigan Auto Law is the largest law firm exclusively handling car accident, truck accident and motorcycle accident cases throughout the entire state. We have offices in Farmington Hills, Detroit, Ann Arbor, Grand Rapids and Sterling Heights to better serve you. Call (800) 777-0028 for a free consultation with one of our No-Fault insurance lawyers.

Michigan Auto Lawyers

You need to buy uninsured motorist coverage - NOW

About 50 percent of Detroit drivers are driving without any auto insurance, according to the Detroit Legal News. And about 19 percent of all Michigan drivers have no auto insurance, according to a news release by the Insurance Research Council.

People think that because they have insurance on their car, they are protected.  But as a car accident lawyer, let me tell you, this could not be more wrong.

Your auto insurance often will only protect the person you injure if you cause a car accident.  But what happens if you are driving in Detroit, you’re hit by an uninsured driver and you do not have uninsured motorist coverage (UM)?  If you’re in a car accident with a driver who does not have auto insurance, you can lose everything, including any right to collect for your pain and suffering and injuries.

But with the right auto insurance, this does not have to happen.

Please read the information below about uninsured and underinsured motorist coverage (UM/UIM). Our car accident attorneys recommend that you purchase this valuable insurance.

Uninsured and underinsured motorist coverage provides a valuable source of legal recovery after a car accident, when someone is injured by another driver who is uninsured or does not have adequate insurance.

With UM coverage an injured person turns to his or her own auto insurance company to pay what would have been recovered from the at-fault driver, had that person been properly insured with an insurance policy limit to cover their injuries.

To be compensated under a UM policy, an injured driver must show that the other driver was uninsured and was legally at fault in causing the auto accident.

Uninsured motorist coverage is very inexpensive. As I always say, for the price of a movie and popcorn, you can make sure your family is protected. You can speak with your insurance agent for specific pricing.

Our accident attorneys recommend you buy $500,000 worth of uninsured/underinsured motorist coverage.  You will be shocked how inexpensive it is to protect you and your family with this much coverage.

Some auto insurance companies do not tell their policy holders about UM. You might have to personally ask for this important insurance coverage.

Be aware of the insurance policy’s notice requirements. Each auto insurance policy has time frames in which a car insurance company must be informed of an accident. For instance, some policies require that the insurance company must be informed of a car accident within 30 days of the date the car accident occurred with an uninsured driver. If notice is late, an auto insurance company can deny contractual benefits like UM/UIM. This actually happened to one of my clients, and she received nothing after she was seriously injured by an uninsured driver.  Because these are contractual additional coverages, the terms of the policy must be carefully followed. Talk to an experienced car accident lawyer if you have questions. Policies are difficult to read, but the terms must be complied with or you can lose the right to collect uninsured and underinsured motorist coverage.

Avoid Progressive Insurance Company. Please avoid Progressive or any other auto insurance company that sells UM/UIM with insurance policies that allow them to “set-off” or deduct from a UM/UIM policy limit — that the auto insurance company is required to make by law for medical bills and wage loss. It’s also important to avoid insurance companies with policies that allow them to deduct other benefits from uninsured motorist coverage, such as workers compensation.  If you are injured in the course and scope of your employment, make sure your work compensation lawyer knows about your UM insurance.

The most important advice that any car accident attorney can give you is to read your insurance policy. You must ask your insurance agent, if, for example, family members who do not live with a vehicle’s owner will still be covered under a UM/UIM policy, even if they have been given permission to drive a car that’s covered by uninsured motorist coverage.

If you don’t understand the language in your insurance policy, you can always call an accident attorney. It’s better to make sure your questions are answered and that you fully understand your insurance rights.

Remember, you can visit Facebook.com/MichiganAutoLaw to enter to win a $1,032 check as part of our distracted driving and insurance awareness campaign. The prize money is enough to buy Michigan auto insurance including UM/UIM for an entire year.

- Steven Gursten is recognized as one of the nation’s top accident attorneys handling serious car accident cases and No-Fault insurance litigation. He writes about Michigan No-Fault law and insurance issues, and is available for comment.

- Photo courtesy of Creative Commons, by TheBusyBrain

Related information to protect yourself:

Insurance coverage issues and Michigan car accidents

3 potential cases after an auto accident in Michigan

The insurance coverage that an insurance lawyer recommends

Michigan Auto Law is the largest law firm exclusively handling car accident, truck accident and motorcycle accident cases throughout the entire state. We have offices in Farmington Hills, Detroit, Ann Arbor, Grand Rapids and Sterling Heights to better serve you. Call (800) 777-0028 for a free consultation with one of our Michigan accident attorneys.

Michigan Auto Lawyers

The best auto insurance coverage for teen drivers in Michigan

There’s a new teenage driving law in Michigan – that restricts passengers of teen drivers and only allows them to drive until 10 p.m. In addition to questions about the new law, our No-Fault lawyers have been getting many questions from concerned parents on insurance coverage for teen drivers, especially during this time of college graduation.

We realize that parents are trying to save money on their kids’ car insurance.  And trust me, we recognize that the cost of insuring a teen driver is expensive - auto insurance is one of the few areas where it is legal to discriminate on the basis of age, after all. But many parents are making huge mistakes by trying to save a few dollars.

The biggest mistake I see regarding teen drivers is not listing your teenager as a “named insured” on your auto insurance policy. This is very dangerous. And if your teen causes (or is injured in) a serious car accident when driving a car that she normally drives but is not listed on as a “named insured” or “named driver,” there can be disastrous consequences. These consequences include your child’s medical bills not being covered by your own auto insurance company, and being barred from suing an at-fault driver who causes serious personal injury to your teenager - even when your teen is completely innocent.

That’s why I’m posting frequently asked questions below, with answers on the best automobile insurance coverage for your new teen drivers.

Q. My child is now a teen driver. What changes do I need to make to my auto insurance to make sure my teenager is protected under the Michigan No-Fault law?
A. A parent must inform his insurance company that there is a new licensed driver in the home. Parents are also supposed to list the primary driver of each vehicle (named-drivers).  If parents purposely avoid listing their teenagers, either as living in the house or as named-drivers,  this could be considered insurance fraud, and coverage can be canceled by your insurance company where the policy is considered void ab initio.

Q.  What is the best level of coverage for my teen/college age driver?
A. Assuming the teen has her own separate auto insurance coverage, the minimum policies she should carry should be $250,000/$500,000 for bodily injury (personal injury if she causes an auto accident) and $250,000/$500,000 in Unininsured and Underinsured Motorist Coverage (UM/UIM).  If the teen is on her parents’ policy, her coverage is the same. Every person should purchase UM/UIM. It is the best insurance coverage, and many people know nothing about it.  Ask your agent about this coverage, and if your insurance company doesn’t offer these important Uninsured and Underinsured Motorist Coverage, you should find a new insurance company to properly protect you and your family.

Q. How should a family’s policy be structured if the teen drives a parent’s car versus having his own car?
A. A teen should be listed as a named-driver, so the auto insurer can never say that it was unaware that there were teens in the house or that the teens drove the car.  If the teen owns the car, then the teen really should be a named-insured or co-named-insured.

Q. If a teen is driving her car and the passengers are injured in an accident, how are those passengers covered by the Michigan No-Fault law?
A. The order of auto insurers would be the same as any car accident:
1. The passenger would receive No-Fault benefits through his own insurance.
2. If the passenger does not have auto insurance, then he would receive No-Fault benefits from a resident-relative.
3. If that relative is not covered,  then the passenger would seek benefits from owner of the car.
4. If the car owner is uninsured then the passenger would receive benefits from the driver of the car.
5. If all else fails, the passenger would look to the Michigan Assigned Claims Facility for No-Fault benefits.

Q. What can a parent/teen do to make sure the teen is protected while riding as a passenger in a friend’s car?
A. As long as the teen or resident-relative has insurance, the teen is protected by the Michigan No-Fault law and can receive all of the No-Fault insurance benefits in case she is injured in a serious car accident.  As long as the teen is not operating an uninsured vehicle that she could be considered an owner of by frequent use (constructive ownership), she is going to receive No-Fault insurance benefits from somewhere (see answer to previous question).

Q. How can teens and parents minimize the costs and premiums of their auto insurance policies while still being fully protected? (higher deductible, etc?)
A. Once the proper insurance coverage has been determined, call an independent insurance agent that represents several auto insurance companies, to determine which insurer will give the best rate.

- Steve Gursten is recognized as one of the nation’s top lawyers handling serious car accident injury cases and auto No-Fault litigation. Steve speaks and writes extensively on safe driving and Michigan’s auto  laws, and is available for comment.

Related information:

TBI – leading cause of death and disability for American youth

Top 5 hazardous actions by teen drivers

Pain and suffering and your car accident

Michigan Auto Law is the largest law firm exclusively handling car accident, truck accident and motorcycle
accident cases throughout the entire state. We have offices in Farmington Hills, Detroit, Ann Arbor, Grand
Rapids and Sterling Heights to better serve you. Call (800) 777-0028 for a free consultation with one of our insurance lawyers.

Michigan Auto Lawyers

Michigan auto attorney warning: AAA uninsured motorist coverage arbitration

April 16th, 2011 Watch out, arbitration may mean trial for UM, even after the arb award!

AAA just added a nasty little addition to its policy regarding uninsured motorist coverage and underinsured motorist coverage (UM and UIM) and the right to arbitration. This change is going to surprise a lot of auto attorneys in Michigan next year (and probably cause a lot of very unhappy clients for lawyers unaware of this important policy change).

Here’s the change to AAA’s policy language:

For damages caused by an underinsured motor vehicle:

a. … the decision agreed to in writing by two of the arbitrators will be binding if the amount of damages determined by the arbitrators does not exceed $50,000 for bodily injury to any one person or $100,000 for bodily injury to two or more persons in any one motor vehicle accident. Judgment upon the award rendered by the arbitrators may be entered in the Circuit Court in the county in which the arbitration was held.

b. if the amount exceeds $50,000 for bodily injury to any one person or $100,000 for bodily injury to two or more persons, the decision of the arbitrators will not be binding and either party may demand the right to a trial, unless the parties agree otherwise by prior written agreement. Trial shall be on all issues of the arbitrators’ decision. This demand must be made within 60 days of the arbitrators’ decision and suit filed in the court of proper jurisdiction within 120 days of the arbitrators’ decision. If this demand is not timely made or if suit is not timely filed, the decision of the arbitrators will be binding. Judgment upon any binding award rendered by the arbitrators may be entered in the Circuit Court in the county in which the arbitration was held.

The take away for auto accident attorneys in Michigan, and perhaps other states if AAA has made this change nationwide, is to make sure you agree, in writing, before arbitration that the arbitration decision will be binding no matter what the arbitration award.  Make sure the AAA insurance defense lawyer has agreed to this, in writing, or any arbitration award will not be binding, and you just spent a whole day educating the defense attorney and the insurance company on the strengths of your case so they can better prepare for trial.

How arbitration works in Michigan auto accident cases

Not every auto accident case goes to trial (unlike in TV).  In fact, the vast majority settle.  However, to receive the best possible settlement for pain and suffering if you’ve been injured in an auto accident, I’ve  learned that there’s a strong correlation between the more your lawyer prepares for trial and the higher the likelihood that the case will settle, and settle at a higher amount.  In other words, having an attorney who is preparing for trial shows the auto insurance company that you’re prepared and serious, and increases the risk and exposure to the insurance company of a high jury verdict.

To avoid trial, many auto accident cases go into arbitration. The benefits of arbitration for auto accident victims are that the hearing is normally over in one day, whereas a full-blown trial can take several weeks.  Also, the costs are a fraction of what your attorney will need to spend to take the case to trial.  Finally, there is normally never an appeal

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