Purchasing car insurance is an important decision. Although the huge amount of car insurance commercials out there make it seem like all car insurance policies are the same, this is not accurate.
There are a number of things to consider when purchasing a car insurance policy. This article helps explain 4 signs of a good car insurance policy.
1. Bodily Injury Limits Above the State Minimum:
Bodily injury limits should be well above the $20,000 state minimum. Bodily injury coverage is insurance protection for when the driver of a motor vehicle causes an accident that result in personal injury. Many insurance agents only try to sell the minimum amount, which is $20,000 in Michigan, to show a less expensive premium. Don’t fall for this. You never know what may happen when operating a car or truck. Accidents can and do happen. It is important to have adequate financial protection that will cover you in a serious accident.
2. Uninsured and Underinsured Motorist Coverage:
Uninsured motorist (UM) coverage covers personal injury for an accident caused by an uninsured motorist (UIM) who is at-fault for causing an accident. Underinsured motorist coverage covers personal injury for a car accident when the injuries are more than the bodily injury coverage for the at-fault driver.
Although they should be mandatory, these insurance coverages are not in Michigan. However, everybody should have them. Many Michigan drivers are uninsured. Even more only carry the $20,000 bodily injury minimum. Uninsured and underinsured motorist coverage provides yourself with financial protection in case you are involved in a car accident with one of these motorists.
In addition, UM and UIM coverage is cheap. A $100,000 policy can cost as little as $10. So a $10 payment can result in $100,000 worth of compensation if a horrible car accident does occur.
When purchasing a car insurance policy, make sure your insurance agent includes both UM and UIM coverage. If for some reason the insurance company doesn’t offer this protection, go to a different insurance carrier.
3. Collision Coverage:
Under the Michigan no-fault law, the most the at-fault driver has to pay for vehicle damage is $1,000. That’s it. The reason for this is that under the law, you are responsible for insuring your own vehicle for property damage from a car accident. This type of insurance is called collision coverage.
Unfortunately, collision coverage is not cheap. In fact, for most drivers, it is the most expensive part of any insurance policy.
However, without it, you could be left without a vehicle when a car accident occurs. With it, your car insurance company will pay for any repairs necessary to get your vehicle fixed, or if the vehicle is totaled, your car insurance company will pay you the net present cash value of your vehicle. Either way, you are provided with coverage for the vehicle damage to your car.
4. Uncoordinated Medical Coverage:
All Michigan car insurance policies are no-fault policies with the benefits and coverage afforded under the Michigan no-fault law. This means if you are injured in a car accident, you are entitled to certain benefits, including the payment of medical expenses related to the accident.
Over 90% of car insurance policies in Michigan are coordinated no-fault policies. With a coordinated no-fault policy, a policyholder’s health insurance plan is primary for the payment of medical expenses and the no-fault insurer will only pay benefits not paid by the private health insurance plan. In other words, the no-fault insurer is secondary.
With an uncoordinated plan, the no-fault insurer is primary for all medical payments.
Although coordinated no-fault policies are a little less expensive than uncoordinated policies, the benefits you are giving up when selecting a coordinated plan are extensive.
For example, many health insurance plans only cover a certain amount of physical therapy or chiropractic appointments per year. Once those appointments are used up, the health insurer won’t pay for any more. After that, the no-fault carrier is supposed to pay, but often an interruption in medical treatment occurs before this happens.
With an uncoordinated no-fault policy, there is no interruption in medical treatment. There are no limitations on the medical treatment you can receive. Under the law, the no-fault insurer must pay for all reasonable and necessary medical treatment related to the car accident.
If you are seriously injured in a car accident, this can mean the difference between average health care and incredible medical treatment.
The Lee Steinberg Law Firm, P.C. has been representing Michigan car accident and Michigan truck accident victims for over 40 years. Our team of dedicated Michigan car accident lawyers can assist you every step of the way. For a free consultation, please call us at 1-800-LEE-FREE (1-800-533-3733). There is no fee unless we win your case.