Insurance Coverage After My Car Was Backed Into

[Brandilla]

My question involves insurance law for the state of: Michigan

Hi everyone. I've been trying to understand this No Fault law/act in Michigan and I'm confused...

Yesterday, here in Michigan gas was going up 40 cents. There was only one gas station in my area that hadn't gone up yet and it was pretty busy. I pulled in and got in line for a pump, and a guy backed right up into my left fender, right in front of my driver's door, causing me to be unable to open it. The guy got out and we exchanged information and we went our seperate ways, with no police report, as it was in the gas station's parking lot, and I was told by my husband that cops won't come if it happened on private property. I immediately went home and called the guy's insurance company to file my claim. The woman I spoke with told me my car is unsafe to drive, and I would need to have someone come to me to do an estimate. Okay. No big deal.

Today, the woman who is actually the other guy's local insurance agent called me and told me a few things that confused me. First of all, she said I need to take my car in for an estimate. She said that sometimes you can make it so the door will open (I can't. I tried. And I told her that). She also told me that because of Michigan's no fault law, I need to go through my own insurance company, and if I understood her right, she said they (as in the other guy's insurance) would only reimburse me up to $500 for my deductible. Is this true? I was hit before, and the other person's insurance covered all the damage ($1300). And lastly, I don't know if it matters, but she said that since I wasn't actually in a legal parking spot, even though I wasn't moving, it's still considered a moving automobile accident.

Ultimately, what I want to know is what are the odds of the other person's insurance company paying for my damage? Did I understand right that I can only get up to $500? I have PLPD, so my insurance will be of no help...

Oh, one more thing. The woman said she tried calling her client today and his phone number has been disconnected and if she can't get ahold of him by phone, it will be 10 days before she can even do anything for me.

I've only ever been in one other accident, where my husband had my car parked in a parking lot and someone backed into it. My dad actually handled everything for me then, so I'm really just confused now... I don't know what to expect or what to do. If my car is unsafe to drive, what am I supposed to do for 10 days? Not to mention I'm 7 months pregnant, so crawling over the seat is almost impossible...

Sorry this is so long. I really would appreciate anyone's help SO much though... Thanks in advance.

[aaron]

She also told me that because of Michigan's no fault law, I need to go through my own insurance company, and if I understood her right, she said they (as in the other guy's insurance) would only reimburse me up to $500 for my deductible. Is this true?

Yes. Michigan is a No Fault state, so you make your claim for collision damage through your own policy. You can recover your uninsured vehicle damage, up to $500, from the other driver (or, in this case, their insurance company).

I don't know what to expect or what to do. If my car is unsafe to drive, what am I supposed to do for 10 days?

Do you have rental car coverage on your policy?

[Brandilla]

Thanks for your fast response. Truthfully, I don't know if I have rental car coverage, but I doubt it. My dad has always handled my car insurance stuff. I know I pretty much have the bare minimum.....

Yes. Michigan is a No Fault state, so you make your claim for collision damage through your own policy. You can recover your uninsured vehicle damage, up to $500, from the other driver (or, in this case, their insurance company).

So no matter how much the repairs cost, that's the most they'll pay? When my car was hit last year, the other person's insurance covered all of the repairs, plus my rental car for when the car was in the shop. Do you know why it would've been covered then and not now?

[aaron]

Perhaps it was an out-of-state insurance company that didn't understand Michigan no fault law, or perhaps the accident occurred in a different state. I have no way of knowing.

[Happy Trails]

I would guess that it was because the first time the car was parked in a parking spot.

http://www.carinsurance.com/kb/content16896.aspx

[Brandilla]

I would guess that it was because the first time the car was parked in a parking spot.

http://www.carinsurance.com/kb/content16896.aspx

Thanks.... That's kind of what I was afraid of. It just sucks, because I was in line at a busy gas station... It's not like I chose NOT to get out of the way. I was honking my horn and everything.... But I guess this is all good information to know for the future.

One last thing, is it correct to assume that if the damage is more than the $500, I can't sue the driver to recoup my losses??

[aaron]

The driver's liability is limited to the lesser of $500 or your uninsured vehicle damage (practically speaking, your deductible). Once you collect that amount, you cannot sue for more.

[Brandilla]

Thanks guys for clearing everything up for me. Of course, it's not what I wanted to hear.. lol but I appreciate it very much.