OT: Michigan Car Insurance Laws Stink

What is wrong with the State of Michigan's insurance laws.

3 weeks after my daughter buys a brand new car, she's driving back from Michigan with my wife in the car, and gets rear ended. They were on the highway, in a heavy down pour. Thank God they didn't get spun around!

They have this a “no fault” insurance law in Michigan, so their insurance company gets to stick it to me.

It's my insurance company that sends me a check for repairs, minus the deductible.

And it my car that my daughter has to drive for a month to get to work and school.

Their insurance won't pay the $1000 deductible and they won't pay for a loaner car. What's wrong with this picture. It's 100% their fault.

My daughter had the car 3 weeks, and now the dealer is taking 4 weeks to fix it. Additionally, the brand new car has diminished value because carfax reports the accident. To top it off, she gets to make a car payment for a car she won't see for a month!

Here's a picture of my daughter with her new car she purchased herself (with a little help from grandma) after graduating college. She's showing it off to her grandma (my mom) right after she got it 5 weeks ago.

Attachment 130757

Was the other driver uninsured?

Slab,

No fault limits the other persons liability to 10k to people out of state. Likely their insurance company already paid your daughters insurance company the 10k. The silver lining is your daughter can sue the driver. She is not protected by her insurance company ether. Make sure to save copies of all the costs incurred. She might even get to go on Judge Judy.

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Originally Posted by Hermin

Was the other driver uninsured?

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Nope, he has insurance.

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Originally Posted by Hermin

Slab,

No fault limits the other persons liability to 10k to people out of state. Likely their insurance company already paid your daughters insurance company the 10k. The silver lining is your daughter can sue the driver. She is not protected by her insurance company ether. Make sure to save copies of all the costs incurred. She might even get to go on Judge Judy.

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I spoke with my insurance company and they said they will try to get that 1k deductible from them but there are no guarantees, and if they do, it'll be two months or longer. It still stinks. This "no fault" crud is for the birds. Seems to protect insurance companies, and bad drivers "at fault".

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Originally Posted by Slab

I spoke with my insurance company and they said they will try to get that 1k deductible from them but there are no guarantees, and if they do, it'll be two months or longer. It still stinks. This "no fault" crud is for the birds. Seems to protect insurance companies, and bad drivers "at fault".

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I agree. I have no idea why it limits compensation to out of state drivers, driving cars registered out of state damages to $10,000. Call the other driver and inform him that you intend to sue him unless he pays for the cost of repairs.

This is the best part... Michigan insurance companies have tried (for years) to get this law changed. They are actually listening to their customers. The problem........ Michigan house members are rejecting it each and every time.

In Michigan, you can file a "Mini-Tort" against the at fault party to recoup your deductable.

Side Bar: In Japan, no one can be 100% at fault. Even if you are parked at a stop light and a grand piano fell from the 3rd story window and landed on the hood of your car, you are still partially at fault simply for being at said stoplight (actual example given while I was stationed in Japan)

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Originally Posted by Hermin

I agree. I have no idea why it limits compensation to out of state drivers, driving cars registered out of state damages to $10,000. Call the other driver and inform him that you intend to sue him unless he pays for the cost of repairs.

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My insurance took care of everything except my deductable. All I want is for them to cover that $1000 deductible, I'm not talking 10k, just 1k. The damages to the car were only $2700, other than the diminished value of brand new car (that was in accident).

Yup Ed. File that one in the "things to fix with this state" folder and don't hold yer breath! Glad that Sharon and your daughter didn't get hurt.

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Originally Posted by Slab

My insurance took care of everything except my deductable. All I want is for them to cover that $1000 deductible, I'm not talking 10k, just 1k. The damages to the car were only $2700, other than the diminished value of brand new car (that was in accident).

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Good to hear, sorry to hear about the thousand dollars, I don't even know what I would do if it happened to me. Glad everyone was safe and the car wasn't totaled.

I was informed by my agent that my insurance was going up $279.00 I had 1 claim last summer when the fishing line got tangled in my lower unit. I've had 6 claims since I was 16 and am now 67.Two of them had nothing to do with my car or truck. One was a guy running a stop sign and broadsided me, two deer, and a guy rear ended me at a stop sign. No tickets in 40 years. We pay $800+ and they want to raise it to $1100+ every six months. Our car & truck are both 2007's. Somehow this seems plain wrong. Were paying for something other than insurance here in Michigan. We have the second highest gas prices in the U.S.A. only Hawaii pays more as of a month ago. OK, I'm done...

Hey Larry sounds like it's time to do some shopping around. That sound pretty high to me

MAYBE it's time to do some shopping around for a new state??? I was reading that a handful of counties in northern Colorado are working on seceding and forming a new state to correct some issues out there. Maybe the U.P. needs to bring that one back to the table too. Something needs to change...sooon!

I pay just a bit over $2000 annually to cover 2 cars, truck, and boat under my vehicle policy, and also have homeowners through same insurer (AARP/Hartford). All vehicles are payed for, so only have full coverage on truck. It will depend on your deductible, etc., but would be interesting to know just why you pay so much.

Larry,
My parents had AAA for 45 years. Always said they were happy with them, always taken care of and so forth so never saw the need to change. Then one day, we were talking and they asked me how much I pay. They were floored. I own a home, cars, trucks, barns insured to a half a million and so on. They paid more than double what I do. Mom and dad shopped around for the first time ever. Found a local dealer and ended up saving a boat load of money and got better coverage. Dad called AAA to cancel and they asked why. He told them why and they said "Sir, you have been a loyal customer, no accidents or claims, we can adjust your rates". My dad was furious... told them if he was so loyal and important to them, why didn't they monitor it all these years....... Long story short, shop around. Farmers is good, (my parents have them now) I have Liberty Mutual.

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Originally Posted by yankee doodler

I pay just a bit over $2000 annually to cover 2 cars, truck, and boat under my vehicle policy, and also have homeowners through same insurer (AARP/Hartford). All vehicles are payed for, so only have full coverage on truck. It will depend on your deductible, etc., but would be interesting to know just why you pay so much.

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I should have made myself more clear. I pay that around $2200 for my house, boat atv, and vehicles a year. I still think it's too high. It's a rip off.... I love Michigan? But there's a lot of nice places in other states..

I hear they got some really good deals down Sippy way...maybe you oughta do some shoppin' wilst yer down there.

nice plate on the front of car

Just was browsing the old posts here on this nasty day and read this...

I own an auto body shop, my Grandfather started it over 60 years ago now...

The reason Michigan utilizes "no fault" insurance is because it is the only way to make insurance remotely affordable considering Michigan is one of the only states that if you are injured in an accident, there is no cap as to how long or how much your insurance company must take care of you, so if you are disabled for life, they have to take care of you, for life persay and must pay all your medical bills.

There are pro's and con's to no fault insurance, but there is a pretty big advantage to living in Michigan IF you are seriously injured in an auto accident...

I recently moved to Indiana, have always lived near the border anyway so only moved about 30 minutes South, insurance is about 2 times cheaper here for me, BUT if I was ever seriously injured, there is a cap as to how much the insurance company would have to cover and in today's World, it doesn't take much to run up millions in hospital bills. I believe in Illinois "where it appears your daughters car is registered in", after $500,000 in medical bills, you are no longer covered and it then falls on you to pay the remaining amount...

If your daughter would have been a Michigan resident, and had broadened collision coverage, she would have not paid any deductible as the accident was not her fault...

The truth is, while it does cost a little more up front, Michigan's insurance laws provide the best coverage for its residents than any other state in the country, insurance companies lobby for it to be changed all the time, but it gets denied as the real reason for it has merit. Most people do not understand how it works and that is why they hate it...

Forgot to mention, 4 weeks for a $2,700.00 repair!? Find a new body shop ;)

Glad every one is ok. ,Also check with your insurance, but I found out after someone rear ended me that my insurance did not cover my boat or motor.

Most vehicle insurance policies don't. They don't do a very good job even when they do. I have a travel trailer and a boat and both have their own coverage outside my tow vehicle.