Over the past 27 years, I have been advising clients to purchase uninsured motorist coverage when they buy an auto insurance policy. While purchasing uninsured motorist coverage is optional, you protect your family by purchasing this extremely important insurance coverage. Uninsured motorist coverage protects people that are injured in car accident with a motorist that is not covered by an auto insurance policy. In the uninsured motorist accident, the injured person looks to their own auto insurance policy for the payment of bodily injury benefits. However, there are instances they would file a claim against the State of Michigan Assigned Claims Plan for personal injury protection benefits.
With roughly 21% of Michigan motorists driving uninsured, this happens often. This is where the Michigan Assigned Claims Plan steps in to pay personal protection insurance benefits.
You cannot legally drive in Michigan or any other state without proof of financial responsibility for damages or liability in the event of a car accident crash. In Michigan auto insurance is mandatory as proof of financial responsibility.
If you've financed or leased your car, your lender and leasing company usually will require you to have comprehensive and collision insurance as part of the loan or lease agreement. In other words, the bank or leasing company will want you to have insurance to protect the automobile.
You'll protect yourself and your assets with car insurance. In Michigan, our law firm recommends a minimum of $500,000 of bodily injury protection per person and $1,000,000 per accident, since accidents may cost far more than the minimum limits mandated by Michigan no fault law.
Yes, in 2019, the Michigan Assigned Claims Plan (MACP), and what claims go through the Assigned Claims Plan has changed significantly.
Consequently, many more people will be forced into the Michigan Assigned Claims Plan for their personal protection insurance benefits. For example, now a passenger involved in a crash without any auto insurance will apply to the Michigan Assigned Claims Plan, if they don’t have their own household auto insurance, would turn to the Michigan Assigned Claims Plan to obtain no-fault benefits. Also, the Michigan Assigned Claims Plan is only obligated to pay $250,000 in medical care. Unfortunately, many uninsured auto accident victims will obtain limited no-fault benefits, which will in many cases be drastically inadequate. Under the new no-fault law, the injured party can then sue the at-fault driver for excess medical expenses not covered by the MACP’s medical benefits. However, given the optional amount of bodily injury limits that drivers can purchase, the bodily injury limits will not be enough to cover your medical bills in a serious injury accident. Bottom line is, Michigan’s no-fault reform is bad for the consumer.
We have been helping victims of hit and run car accidents for nearly 30 years with great success. Our experienced uninsured motorist auto accident lawyers can help you an underinsured and uninsured motorist claim. Call us today for a free consultation at 866-447-3563. No fees until you collect.
