Not that long ago, most people hurt in Michigan car crashes had confidence in their total protection from the medical consequences of a wreck. So long as they carried the insurance required by state law, they were not at the mercy of another driver’s compliance with the law if they got hurt in a wreck.
Under Michigan’s now-defunct no-fault insurance requirements, every motorist was subject to an obligation to carry unlimited no-fault personal injury protection (PIP) coverage. They could use their own policies to cover their medical care costs and other major losses generated by a car crash. Regardless of who caused the crash, drivers could rely on the policies they paid for to cover their treatment costs.
That high insurance requirement eventually led to some of the highest insurance premiums in the country. Efforts to reform the insurance system have reduced policy requirements. More people hurt in crashes now need to file lawsuits to cover their expenses.
Why is litigation often necessary?
Drivers can no longer count on their own policies if they waive high levels of no-fault PIP coverage. Some people, such as those with state medical insurance, can completely eliminate their no-fault coverage.
They may then lack adequate financial support if another driver causes a crash. While the state does now require liability indemnification coverage for injuries, Michigan still has one of the highest rates of uninsured drivers in the country. People are at risk of getting hurt by a driver who does not have the minimum amount of coverage required by law.
Even if they do have minimum coverage, those with catastrophic injuries may find that their lifetime care expenses and lost wages go well beyond the coverage available through the at-fault driver’s insurance. Similarly, when crashes result in someone dying, surviving family members may struggle to cover all of their economic losses and may want to pursue a wrongful death lawsuit.
Reviewing policy information and crash details with a legal professional can be beneficial for those concerned about covering their expenses. Motor vehicle collisions can be much more costly than people may anticipate, and the parties at fault are the ones with the legal obligation to cover those costs.