As you may know, the State of Michigan requires every automobile owner to purchase No Fault insurance. It is natural to believe you will never get into an accident; and thus, will not need to utilize or make any insurance claims. However, there is a reason motor vehicle accident are called “accidents”. You never really know when an accident will happen.
Below are some tips for consideration when purchasing automobile insurance. Adding a few dollars on your premium may help save you at the time of a tragic car accident:
1) Make sure you answer all inquires honestly, even if that means your premium will go up. If you get into a car accident and it is discovered that you made a misrepresentation or withheld information, that may be grounds for rescinding your policy, and you may not be entitled to benefits, including No Fault PIP benefits.
2) Always purchase Uninsured and Underinsured Motorist coverage. With Michigan having among the highest insurance rates in the country, many forego maintaining insurance on their vehicle. If one of those individual negligently causes and accident in which you suffer a serious impairment, you may not be able to collect on a negligence lawsuit. Uninsured Motorist coverage gives you coverage that another individuals insurance would have had to pay had they been insured on the date of the accident. We recommend purchasing at least $100,000 per person and $300,000 per vehicle coverage. Obviously, the higher the better.
3) Be aware of Bodily Injury Coverage. Just as indicated above, you want to ensure you are covered in case you cause an accident. You never really know if and when that may happen. If your insurance coverage is too low, you may be liable personally for damages that exceed your policy limits. Furthermore, if you are sued by another driver and they have Underinsured Motorist limits that are higher than yours, their insurance company may subrogate and sue you for the balance.
4) Always update your information. Whether you move, purchase a new car, add new drives in the household, make sure you are updating your insurance company as soon as possible. Failure to do so could also lead to policy rescission.
These are just a few tips to consider when purchasing automobile insurance. If you have any other questions, feel free to contact us at any time. As I said before, you never really know when an accident might happen, so you want to make sure you are protected at all costs.
Contact The Law Offices of Joumana Kayrouz at 248-557-3645 for a free consultation.