Car Accident Without A Drivers License in Michigan
Reader’s Question:
I was a passenger involved in a car accident. I do not have a driver’s license nor own a car so I don’t have insurance and am curious to know who pays my lost wages as well as my outrageous medical expenses?
Jerry
Livonia, MI
I’m sorry to hear about your accident Gerry. To figure out what insurance company is responsible for your medical expenses and lost wages will depend on what state you reside and the type of insurance they require motorists to carry. The main differences depends if your state is a no-fault state or not. Personal Injury Protection (PIP) is generally used in a no-fault state for a situation like this.
Since you live in Michigan, which is a no-fault state, if you are injured as a passenger in a car crash typically your own car insurance would pay your benefits. But in a situation like yours where you do not have car insurance you would collect the benefits from the insurance company that covered any vehicle owned by a relative that you live with. If you did not have coverage that way either, then you would have to collect from the insurance company covering the car or driver in which you were riding.
Since you are in a state without no-fault laws you typically would be able to put your injury claims through the at-fault person’s bodily injury liability policy. If you want to find out your state’s insurance laws, you can contact your state’s insurance regulatory body.
Do I Have to Add My Teen To My Car Insurance Policy?
Reader’s Question:
I’m from Dearborn, Michigan and I have a teenage son who just turned 18. My insurance company said that I have to add him to my policy. Why do I have to do that if my car is covered anyways no matter who drives it? Is there a way I can get a cheaper auto insurance?
Sarah
Dearborn, MI
In making auto insurance calculations, insurance companies include risk factors like other people who have regular access to your cars. This is the reason why they require all licensed drivers in your household to be listed on your policy.
Insurance companies usually use classifications that reflect possible liability exposure on the part of the insurer as a measure to predict bodily injury or property damage resulting to accidents involving another person from your household’s operation of your vehicle.
If your teenage son gets into an accident while in the process of getting his license, and you fail to inform your insurance provider, coverage may not be extended. Some states allow the accident to be covered but then charge you for the premiums you should have paid up to that time for the teen to be on the policy.
Also in some states intentionally not reporting any licensed driver from your household to your insurance carrier and adding him as a driver can be interpreted as a form of insurance fraud.
Insuring teen drivers can be expensive since they are statistically speaking prone to road accidents for being inexperience and immature drivers. Good news is that there are ways to bring down the increase in insurance rates due to adding a teen to your insurance policy. So start discussing the available discounts you can take advantage of with your Dearborn, MI agent such as a good student discount, taking a driver’s education or driver’s improvement class, and etc.
Will Auto Insurance Policy in Michigan Cover Out of State Claim?
Reader’s Question:
In a couple of months, I am planning to move to PA. My present address is in Battle Creek, MI where my family lives and I intend to keep my car insurance here. My dad told me that my insurance policy won’t be honored once I moved to PA and if ever I get into an accident, he can be sued? Is this true?
Nicole
Battle Creek, MI
First thing you have to do is to speak with your car insurance agent regarding your plan to move to Pennsylvania. The car insurer can tell you if you would still remain on your dad’s policy but usually the answer is no. In cases where you move away from home, especially out of state, and since the car is no longer garaged at the household address listed on the policy, an insurance provider will likely no longer carry you and the vehicle on the current policy.
Normally, car insurance companies will follow the limits set by the state where you’re operating a vehicle in cases where you are only visiting or are driving through a state and not when you have moved there for good. If you fail to inform your insurance company regarding moving out of state, or properly changing your coverages over to PA insurance, this would likely be taken as misrepresentation by the Michigan insurer which is a form of auto insurance fraud and is a reason to deny your insurance claims.
If your car insurance did not accept the claim and/or if your car insurance limits were too low and exceeded, your father, both you as the driver and your father as the car owner could be held liable and sued. Your father may face a serious liability putting his assets at risk so make sure that your liability limits are sufficiently high enough.
16 Year Old Teen Driver Auto Insurance In Michigan
Reader’s Question:
I live in Michigan. My 16 year old daughter is buying a car. Can it be titled under her name alone?
Tim
Pontiac, MI
The Department of State for Michigan states that there is no age requirement for titling a car in Michigan.
It is unlawful though to knowingly sell a car to an emancipated teen or minor without written permission from a parent or guardian. A consent document completed by the parent or guardian of the minor at the time of the sell is needed by the seller. By law, the seller is required to keep this consent form by parent or guardian for three years.
Your daughter will also need a parent or guardian to sign on any other legal papers such as an insurance policy while she is still a teen or minor.
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