Drivers in every state need insurance, but the requirements in Michigan are substantially different than in most other jurisdictions. For decades, Michigan has required substantial no-fault coverage to protect people from the injuries possible when car crashes occur. No-fault reform has slightly shifted those obligations. Lawmakers did away with the universal requirement for unlimited no-fault personal injury protection coverage. This reality can affect crash victims in a host of different ways.
As such, anyone who is involved in a serious car crash in Michigan may have a lengthy and challenging insurance negotiation process ahead of them. What can drivers and passengers expect when navigating the insurance claims process?
Insurance companies want to limit losses
Contrary to what all of the advertising slogans imply, insurance companies aren’t out there handing over generous checks after crashes. Instead, they often do their best to minimize the compensation paid out on major claims after collisions. Insurance companies sometimes try to push people into settling their claims. Settlements may provide a lump-sum check for covered losses, but it may leave the claimant without enough compensation given the extent of the injuries incurred. Insurance companies generally have no additional liability after issuing a settlement payment, which makes negotiating appropriate terms crucial.
More than one policy may apply
Drivers may need to deal with not just the insurance provider for the other driver who caused their crash but also their own insurance companies. They may require a combination of both no-fault and liability coverage to recoup their medical expenses and lost wages after a collision. Oftentimes, people rush to accept settlements that may be far lower than the total policy limits, leaving them without adequate compensation for a crash that was the fault of another driver. Those coping with serious car crash injuries are often not in the ideal position to learn about insurance law and handle aggressive negotiations with carriers.
People negotiating insurance claims after motor vehicle collisions may benefit from getting help as they evaluate the financial impact of the crash and communicate with insurance providers. Understanding the coverage available and the common tactics used by insurance professionals is highly important for those trying to minimize the losses caused by a recent car wreck.