No Fault Auto Common Question

Q: I was recently in an accident involving another driver.  Although I have insurance, the other driver is seeking a large sum of money from me personally.  How can they do this?

A: The other driver, or his/her insurance company, is likely seeking money above what is covered by your insurance policy.  Michigan law allows a driver to carry as little as $20,000 of liability insurance.  If you were at fault in the collision with this level of insurance and seriously injured another person, your insurance company will only cover $20,000 in damages.  You would be personally responsible for the rest.

You’re not alone.  Many people don’t realize that they are underinsured, yet it costs relatively little to increase your coverage to $100,000 or more.  Your local insurance agent can counsel you.  If, however, you have been in an accident and you are facing possible litigation, contact our firm.