Michigan operates under the No-Fault law, which means that all victims of motor vehicle accidents are guaranteed insurance benefits, regardless of who’s at fault. There are certain limitations on the rights of auto accident victims when it comes to claims against at-fault parties, but it doesn’t necessarily mean that they cannot hold the at-fault party liable for the inconveniences brought about by the accident. Apart from the personal protection insurance benefits, they can also claim damages for the recovery of non-economic problems and excess economic losses.
Claiming Compensation for Michigan Motor Accidents
Michigan motorists are only required by law to carry $20,000 in no-fault insurance coverage, and these are usually capped at $40,000 per accident. This means that regardless of how serious an accident was, the at-fault driver’s insurance company only needs to pay $40,000 at most. However, $40,000 often isn’t enough, especially when talking about auto repairs and medical costs. Add the fact that there might be more than one victim in the accident who might share the $40,000 among them, and you can definitely see how insufficient the coverage can be to some people. For that reason, people opt into additional insurance plans like underinsured motorist coverage. This type of policy will help safeguard you financially in case you ever get involved in an accident with a person who holds a lousy no-fault insurance coverage.
What is Underinsured Motorist Coverage?
An underinsured motorist coverage is an opt-in insurance policy that extends coverage to include payouts for property and bodily damages caused by at-fault motorists who have insufficient auto insurance coverage. Basically, injured parties can claim compensation atop the limit of the at-fault driver’s own policy.
Processing Claims for Underinsured Motorist Coverage
Having an underinsured motorist coverage on top of your existing coverage is smart, but you have to make sure that you follow the claims procedure precisely to prevent the nullification of your claim. Otherwise, having an underinsured motorist coverage would just be a waste of your time and resources. As mentioned, most of the policies in Michigan will require victims to exhaust the liability limit of the at-fault driver’s insurance before going forward with a claim. Additionally, these policies also require victims to get written consent from their own insurance company before finalizing any claim with the at-fault driver.