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.
Hello there, thanks for visiting and reading ShanKri-la. If you liked what you read, you could get free updates by RSS or by email. You could even follow me on Twitter or check out our Indian food blog or iPhone blog. See you soon!
Relevant Tags: financeIf you enjoyed this post, get regular updates with our RSS Feed!
Says:
February 26th, 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
Stu’s last blog post..Third Party Car Insurance
February 26th, 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.
April 24th, 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
May 29th, 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.
June 5th, 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.
June 26th, 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!