|
|
|
|
Welcome to Michigan DUI |
||
Be informed on Michigan Drunk Driving News and Issues on Protecting Your Rights, Avoiding a DUI Arrest, handling Police Traffic Stops and locating Affordable Car Insurance Options. Browse the Links and Categories for Comprehensive Drunk Driving Resources, State of Michigan Links and MORE... |
|
Michigan Auto Insurance: 6 Things To Know About Auto Insurance in Michigan This entry was posted on 5/22/2006 10:41 PM and is filed under DUI Car Insurance. Source: http://www.insure.com
Auto insurance in Michigan can be complicated and confusing. Having a claim can be a painful process, but it doesn’t have to be. Below you’ll find 6 things you SHOULD know about your auto insurance policy and company. Understanding these items can save a lot of money, time and heartache in the long run.
1. How your Michigan auto insurance company determines your car's value after it's declared a "total loss."Insurers say they use three mechanisms to determine the value of a totaled vehicle: computerized vendor quotes, value books such as Kelley Blue Book, and a market search of the local area. However, the local area isn't specifically defined and an insurer may be unable to locate a replacement car within your neighborhood. If an insurer finds a replacement car outside of your living area, the valuation can be affected. For instance, if you live in Detroit - MI, the cost of replacing your car is going to be higher in the major cities than in the suburbs and rural areas. The insurance company will consider quotes from those suburban towns as reasonable estimates. Insurers say their goal in totaling a vehicle is to allow the insured person to purchase, within their market, the same car they lost in the accident. But even they admit that they can use one, two, or all three mechanisms to determine the value of your car, which means you can't be sure exactly what value you'll end up with. What you can do: If you disagree with your insurance company's value determination, there are several things you can do. First and foremost, if you have records of maintenance that show you've had the oil changed every 3,000 miles and had it checked routinely by a mechanic, copy those records and present them to the insurance company to show the car was in good condition. If you had any special parts installed or any upgrades done after the purchase of the car and you've been paying premiums on those improvements, make sure those are included in the insurance company's evaluation. Get price quotes on replacement cars from at least three dealers within a reasonable driving distance and submit these to your insurance company. Ask the insurance company to provide you with a list of dealers within a specific distance who can sell you a car at the price it is quoting that will be equivalent to your car. If you still aren't satisfied, you can step up the process and go to mediation or arbitration, which means presenting your case to a neutral party for assistance in reaching a compromise or, in arbitration, a binding decision, or you can take the issue to court. 2. You may be entitled to a diminished value claim in some states. Diminished value is based on the idea that any car that has been in an accident, regardless of how well the repairs are done, is worth less than the exact same car that hasn't been in an accident. What you can do: In Michigan you are allowed to file a claim for that lost value. This gives you a chance of getting a diminished value payment. Successful cases are also generally made against the at-fault driver's insurance by a third party. 3. You must officially cancel your insurance policy when you switch insurers. Most auto insurance companies state in your policy that you can cancel your coverage at any time by notifying the company in writing of the date of termination. However, most consumers assume that if they decide to terminate the policy at the end of the coverage period, all they have to do is ignore the bill. The insurance companies don't see it that way. They will send you another bill for the next premium payment, and when you don't pay it, the company will cancel you for nonpayment, which goes on your credit record. Your company will not know that you purchased insurance through another company. Keep in mind that your current company must allow you to cancel your policy if you have already purchased a new one. What you can do: Call your insurance company or insurance agent and let them know you are canceling your policy. Be sure to give them a specific date, or you may end up uninsured for a period of time. The company will then send you a cancellation request. Most often, the form is already filled out and all it requires is your signature. Make sure you read it to check for errors. You may also have to prove to your former insurance company that you have new coverage, and if you've financed a car through a dealership, the dealer will need to know your new policy information, since purchase contracts often require proof of insurance coverage... 4. You can wait to add your teenager to your policy until he or she is licensed. In most cases, insurance companies don't require you to add your teenager to your policy until they have their driver's license. The exception may be if you are in a high-risk pool; you may then have to add your child when they receive their permit. What you can do: If you forget to tell your insurance company that you have a licensed teen and you have to file a claim for them after an accident, they will still be covered, but your insurance company is entitled to then charge you back premiums from the date your teen received a license. You are not required to add your teenager to your policy just because he or she has reached driving age. 5. Paying in installments could increase your overall bill. "Fractional premium" fees are usually charged when you divide your annual premium payment into installments rather than pay for a year of coverage all at once. Payments are usually offered on a six-month, quarterly, or monthly basis, but almost every insurance company charges an administrative fee for breaking up the payments. It can be just dollars per payment, but the more you break it down, the more it adds up. What you can do: Be sure to ask up front when you apply for the policy what the fees are for paying in installments. If the fees are small enough, it may be worth it. However, remember that insurance companies can cancel your policy for late payment if you forget one of your installments, many times with minimal notification. If you can pay the premium up front, it may simplify the process and save you a few dollars. 6. Paying in installments could increase your overall bill. "Fractional premium" fees are usually charged when you divide your annual premium payment into installments rather than pay for a year of coverage all at once. Payments are usually offered on a six-month, quarterly, or monthly basis, but almost every insurance company charges an administrative fee for breaking up the payments. It can be just dollars per payment, but the more you break it down, the more it adds up. What you can do: Be sure to ask up front when you apply for the policy what the fees are for paying in installments. If the fees are small enough, it may be worth it. However, remember that insurance companies can cancel your policy for late payment if you forget one of your installments, many times with minimal notification. If you can pay the premium up front, it may simplify the process and save you a few dollars. Please note that this description/explanation is intended only as a guideline.
|
Copyright 2007. http://MICHIGANDUI.COM. All rights reserved.