Car, Home, Toys, and Life Insurance Resource Center

Welcome to the best Michigan insurance resource! Michigan has the most unique insurance laws in the United States. Learn about what it takes to be insured properly as a Michigander. Get saving tips, mandatory coverage amounts, and answers to many frequently asked questions.

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06
Nov 14

5 Michigan Auto Insurance Myths

Although you are not alone in not understanding the complexities of how auto insurance works in Michigan, there are myths and misconceptions out there about how our auto insurance works. Recently, some well-discussed facts were put out that can help to reduce the incorrect information and myths that surround auto insurance.

I can drive my car “a little bit” if I change my insurance to storage (comprehensive only)?

If you make the decision to park your car, or store it for the winter, you can reduce your coverage just to cover comprehensive damage while removing your liability and collision coverage. By doing this, you can reduce your monthly cost while maintaining coverage if something should happen to your car. However, it is important to know that even driving a car a little bit can put you at serious risk if something should happen to the car.

Be smart and be safe – if you are truly parking your car, you can reduce the coverage. But when you plan to drive the car again, make sure that you notify your insurance agent that you will be driving it again even if it is only for a day. It is better to be covered than not be covered.

If my car is stolen, my insurance will pay for a rental car until my car is found?

If your car is stolen, often times you can have rental costs covered up to a specific dollar amount if you have car rental coverage on the vehicle. Even with this type of coverage, it may not be enough to cover the cost of the rental until your vehicle is recovered. It is important to understand the level of coverage that you have so that if something does happen to your car, you are prepared to pay expenses, such as an extended rental car, out of pocket.

Buying that red sports car automatically makes me pay higher premiums.

The long-standing myth that people who buy red cars pay higher insurance just is not true. Many insurance agents will not even ask the color of your car when you call for a quote, instead, they are more likely to ask the year, make and model of the car.

It is true though that some car brands and styles do have a higher insurance rate. Here in Michigan, sporty cars and even hybrid cars can be the most expensive to insure. Safety features play a big role in insurance costs especially in a state with unlimited medical coverage! A mini van full of curtain airbags will most likely get you a better rate than a convertible.

Michigan “no fault” insurance program only helps those without insurance.

There are many false facts surrounding the “no fault” debate that continues to wage war in Michigan. Help for drivers that are in a serious accident will continue with ongoing debates about the level of costs and changes to the primary system for those needing rehabilitation and extensive medical coverage. Coverage for those injured while driving includes medical and care costs associated with the accident; costs that may be viewed as higher in Michigan than in other states that do not have caps on the coverage given based on the definition of “no fault“.

Insurance coverage in Michigan is not mandatory.

There are three types of mandatory insurance in Michigan – personal injury protection, property protection and residual liability. Each of these levels of protection is different and covers different aspects of an accident or injury from a car incident.

  • Personal Injury Protection (PIP) – This coverage pays benefits to the individual in the accident from their own insurance company.
  • Property Protection – This coverage covers the damages you cause with your car.
  • Residual Liability – This coverage gives the individual protection if they are sued by the other individual in an accident.

It is important to understand the truth about your own automotive coverage, and what you need as a driver when living in the state of Michigan.

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Is Home Insurance Required? How to Get a Home Insurance Quote No License, No Problem

22
Oct 14

My Tires Were Stolen! Am I Covered By My Car Insurance?

It isn’t something you thought you had to worry about. You went into the store parking your car like you always do and shopped for hours. Leaving in a great mood with all your new fun items you get to your car and notice something is missing… your tires!

This is a crazy moment where you scream and run around for a few minutes freaking out that someone actually stole your tires. Now that everyone in Michigan knows your pain, it’s time to figure out if your insurance covers this. You can’t go anywhere without your tires so they should be the first call you make. It will probably be to your best friend to tell them your tires are gone, but then the second call should definitely be to the insurance company.

Do you have comprehensive coverage?

The only way your tires being stolen will be covered is if you have some form of comprehensive coverage. Comprehensive is the one you get that covers repairs you need that are not related to a car accident. It usually comes with a deductible. Normally your insurance will subtract your deductible from the payout in the case of theft.

You need to file a police report

As with anything that is stolen, it is important to report it right away. You need to call the police to come out and make a report as soon as you realize your tires are missing. It will make it a lot easier to get a claim filed and approved with your insurance company if there is a report made. On the other side, you will have trouble getting a claim approved if you wait too long to file a report. Don’t wait a couple of days to file a claim because it will hold you up at the insurance company.

Once you discover the theft and have a few minutes to freak out, jump into action and get someone out to the scene of the crime. The police are good about marking down the details they know the insurance adjuster is going to ask for.

Depreciation

Unless your car is very new or you recently purchased new tires, the insurance carrier will most likely depreciate your tires. We all know tires get worn and need replaced after so many thousands of miles. When your tires have lost their tread, you have to pay to replace them on your own. Well, your insurance carrier does not want to pay the full value of replacement when you were overdue for replacement anyways. The adjuster will ask you how old your tires were at the time of loss. They will then calculate the depreciated value, the value they were at the time of loss, and pay you that amount minus your deductible. This is very frustrating to many insured drivers. Lots of drivers are caught off guard when the hear this information. Unfortunately it is true for nearly every insurance carrier. Keep in mind, your insurance company did not steal your tires, a thief did. Try to be mad at the thief, not your insurance company. You might even be getting angry reading this, sorry. Theft is always tough to deal with and no words can really make you feel better. I hope the police catch them for ya, and they are properly / severely punished.

How long does the process take?

As with any insurance claim, it will take a few days at least to go through. Since the adjuster doesn’t have to review any type of damage, it may take a little less time. Just make sure you get the paperwork in as soon as possible to avoid any type of delays. Within a couple of days, you will know your claim has been approved and you are ready to get back on the road again with new wheels.

Prevention is the key

In the event your tires have been stolen you may want to look at some methods of preventing them from being stolen. This can include getting an alarm system installed where if someone comes near your car with ill will in mind, it will run them off quickly. This may help you avoid being stranded with an immobile car after a fun day of shopping too.

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