Did you know this about Auto Insurance in Michigan?

Well, I didn’t!

My car has been hit while parked on a couple of previous hit and run incidents but I never filed a claim because of my $500 deductible and the damages would have cost less than that.

Couple of weeks back, I was at Sam’s Club waiting in an aisle for someone to pull out of a parking spot and a parked car backed right into my passenger side causing a big dent!

So I got out of the car, checked the damage and called 911. And they said you don’t need a police report since this happened in a private property. (I did not know this!) So, we exchanged insurance information and I called my insurance company with the information. Since, this was of no fault of mine, I expected to pay nothing. And which is what the agent at the company told me at that time as well. So I took my car to a claims adjuster and he wrote me up an estimate. I was also told that the claim would not be on my Policy and they would pay from the other party’s policy.

I got a call this morning with a good news, a bad news and a good news. First, the good news is that they have cut a check for the estimated amount and it is already on its way! The bad news: the claim has been set up on my policy as a ‘no-fault’ accident. This is because, in Michigan, unless your car was completely parked, if you were hit even with no fault of yours, the claim goes off your Policy and you have to pay your deductible. My heart skipped a beat. I had just switched to a $1000 deductible! This is crazy.. it is not my fault and I still pay my deductible and I cannot collect that from the party at fault!!! I wanted to scream.. what the **** are you talking about?

Well, the final good news was that since (luckily) the other party’s policy was also from the same insurance company as mine, they waived my deductible!! Whew… that was a close call!

I have to wonder how the claim would be set up on the other person’s policy! If it was set up as a ‘no-fault’ accident, that might mean that you can hit any vehicle in a private property in Michigan and they cannot come after you for their deductible!! Now, no matter how careful I drive, I have to watch out for dimwits backing into my car! Or I am going to end up paying $1000 deductible even if it wasn’t my fault!

How does it work in your state? Or if you know more about how this works, please do leave your comments. Disclaimer: I claim to be no expert in this matter and I am just sharing my experience in this incidence. How does it work in your state? Or if you know more about how this works, please do leave your comments. Atleast there are places to see health insurance ratings.

Disclaimer: I claim to be no expert in this matter and I am just sharing my experience in this incidence.

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9 Responses to “Did you know this about Auto Insurance in Michigan?”

  1. Stu February 26, 2008 at 6:15 am #

    This is unfortunate! My partner had an accident last week & the person whose fault it was, was uninsured. So I feel your pain on this one :mad:

    Stu’s last blog post..Third Party Car Insurance

  2. K February 26, 2008 at 2:02 pm #

    Stu, welcome to ShanKri-la and thanks for taking the time to comment. Sorry about your partner’s accident.. it really is worse if the other person was uninsured.

  3. Fred The Car Insurance Expert April 24, 2008 at 1:29 am #

    The state of Michigan follows a No-Fault system meaning your insurance company will make payments for your injury claims regardless of fault, up to a specified limit. There are many ways to save money in Michigan, but there is only one way to save money on your car insurance. The state of Michigan follows a No-Fault system meaning your insurance company will make payments for your injury claims regardless of fault, up to a specified limit

  4. Young Driver May 29, 2008 at 2:36 pm #

    The insurance companies can be very sneaky sometimes. They look at your risk profile to determine how much you pay for your insurance, then in circumstances like yours they you have to pay the high deductable. I hope this doesn’t make you a higher risk in their eyes now that you’ve had an ‘accident’ – even though it wasn’t your fault.

  5. Outsurance June 5, 2008 at 10:48 am #

    Ouch! I have never heard of a “no fault” accident, to be taken on your own policy. Sounds slightly dodgy. No offense to the state of Michigan, but their rules sound pretty backward.

  6. Used Engine June 26, 2008 at 4:30 am #

    Finding low cost auto insurance rates in Michigan has never been easier. CarInsurance.com offers the best Online Insurance Marketplace™ to help you comparison shop for the lowest rates available. We offer one convenient place to get a quote and buy a policy in 20 minutes or less. In addition, we have all the resources you need to make informed decisions about your car insurance. You get great service from the most reliable and affordable insurance companies in Michigan, so the only thing you do is shop to save money. The best rate in Michigan last year, is not the best rate in Michigan this year!

  7. Debora April 30, 2011 at 4:55 am #

    This is absolutely backwards and typical of the type of red tape nonsense we are subjected to by insurance companies, lawyers and other such organisations. You were lucky but I wonder how many people were not and how much they make on this every day. nnIve just moved to the UK and am not sure how long I will be here for with work so am using a UK based insurance company on a rolling contract. The cost of the policy has doubled since December last year so I am now using a US company to provide insurance for me while in the UK. Its quite well know that over here young drivers are screwed over but a double up on the policy in a few months is stupid. There is a site dedicated to how badly young drivers are fleeced I was just reading, shared below:nnhttp://youngdriverinsurancescams.co.uk

  8. Mike December 7, 2011 at 8:08 pm #

    The insurance sales model is broken. Since the 1940′s, the big insurance companies followed a model where they hired nice guys and gals in every little town in America. They set up shop on Main Street with a friendly face, and asked that person to join every club in town, be active in the community, church, and social gatherings with the idea that you, the customer, would buy from your friendly local insurance agent. The model worked great for the insurance company and the insurance agent. They gave you an insurance quote, you paid it, and they made a lot of money. Sometimes, it is great to have someone local when youy have an insurance problem, but i really like shopping for insurance online and focusing on the lowest price.

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