Should I Call My Insurance After an Accident?

Suppose you’re waiting for the light to turn green at a stoplight, and someone drives up and rear-ends you. In most cases, the fault will be obvious, and you’ll want to file a claim with your insurance company as soon as possible. But what if it’s not so obvious? 

In at-fault states, the insurance policy on the vehicle that was at fault is responsible for damages. That means damage to their car and their injuries, as well as damage to your car and your injuries.

Michigan, a no-fault state, flips that around. Determining who is at fault in case of an accident is not a primary factor. Each party’s damages in the accident are paid for by their own insurance policy, no matter whose fault it was.

So should I call my insurance after an accident? The short answer is yes. 

Let’s consider why you might want to call your insurance company after an accident.

Why Should I Call My Insurance After an Accident?

Accidents can have a negative and long-lasting impact on the lives of survivors. Loss of income, health problems or death can occur as a result. However, the Michigan no-fault insurance program compensates victims for medical bills, lost income, and other losses incurred due to an accident.

On the whole, the no-fault system provides better protection for you and your loved ones. To access these benefits, inform your insurance provider immediately after an accident. Some of the reasons to do so include:

Reason# 1. Your Insurers Will Settle Medical and Other Expenses

If you are injured in an accident, the Personal Injury Protection (PIP) part of your no-fault policy entitles you to a payout of up to 85% of the total income you would have earned if you had not been injured, up to a maximum of three years.

The no-fault system also covers all reasonable medical expenses for injuries suffered in the accident. Reasonable medical expenses include emergency services, medical equipment, ambulance services, x-ray and diagnostic services, physical therapy, hospital services, prescription medicines, in-home care and prosthetic devices. 

However, there is an annual revision to how much you’ll receive as compensation for lost income. To receive the maximum PIP benefits, you must file your claim within 30 days of the accident.

But if you wait, the insurance companies can reduce your payout. The terms will differ if you took out or replaced a PIP policy after 1st July 2020.

Compensation for Replacement Services

You are also entitled to a payment of up to $20 a day for replacement services. If your injury prevents you from doing house or garden chores, the insurance company will pay for these services. 

If you are entitled to replacement services under your policy, you must apply for payment by submitting your claim within one year of the accident. If you wait for longer, you could receive less than you’re entitled to, and you may not get any money at all.

Compensation for Damage to Property

If your car causes damage to a properly parked car or someone’s property, the no-fault Property Protection (PPI), being a part of your no-fault policy, will cover the loss of up to $1 million for the damaged property or car.

The amount depends on what type of insurance you had before the accident.

Cover for Family Members

Family members are also covered under the no-fault policy, provided they live in the same house as you (the insured). Even if a family member is a pedestrian or a passenger in another car and is in an accident, the benefits they are entitled to are similar to those you are entitled to under PIP. 

Reason# 2. You Are Under Obligation to Report as Per Your Policy Agreement

When you sign up for your no-fault policy, you agree to provide your insurer with certain agreed-upon information.

Failure to do so could result in your policy being canceled.  Insurers use this information to determine whether or not to pay PIP benefits. If they don’t receive your report, you may lose out on a payout. 

Disclose everything that needs to be reported to your insurance. That way, they’ll apprise you of your available coverage and help you get a fair settlement.

Reason# 3. The Other Driver May Not Have Proper Insurance

If it turns out the driver that hit you does not have insurance cover, report to your insurance provider.  Your insurer will then be able to take action against the other driver.

If your vehicle was damaged, you may also want to notify the police as well.  There is no law stating you must report an accident to your insurer. But if you don’t, you could be held responsible for the other driver’s damages and be liable to pay compensation.

Reason# 4. Get Help with Immediate Financial Burdens

Your insurer can help ease any financial burden you might have after the accident. For example, if your car has suffered extensive damage, you might need a rental while your vehicle is repaired.

Your auto insurer may pay for the rental car depending on your cover. Or provide you with a loaner car while yours is being repaired. Your insurer will also likely pay for the costs associated with the repair of your vehicle.

Conclusion

If you’ve been in an accident, report the incident to your insurer as soon as possible after the accident.

You are also legally required to notify the police of your accident. If you don’t, you could be held liable for any damages caused by the accident.

Frequently Asked Questions

 1. What should I do after a car accident in Michigan?

In case of a car accident in Michigan, you should notify the nearest police department. Next, you should seek immediate medical attention at the nearest health facility.

Moreover, you should immediately contact a reputable car accident lawyer in Michigan. 

2. Should I seek medical treatment following a car accident in Michigan?

In case of any injury, whether minor or significant, you should seek medical care immediately. Even a minor injury can become quite serious, especially if left untreated, and the consequences can be life-threatening or permanently disabling.

3. What if the driver who hit me does not have auto insurance?

It’s a matter of the law. Your insurance company is required to pay you no-fault benefits even if the driver who hit you has no insurance. These benefits do not include repairs to your car.

4. Do you have to report a crash to your insurance?

Even if you don’t plan to make a claim, you should notify your insurer immediately after an accident. This is to avoid the possibility of the other driver filing a claim without you knowing.

5. Why should I purchase auto insurance in Michigan?

To drive legally in Michigan, you must purchase no-fault auto insurance. Penalties for driving without insurance include a fine of up to $500 and up to one year in jail.

6. Does the basic no-fault insurance pay for repairs to my car after an accident?

Repairs to your car are not covered by your basic no-fault insurance policy. And your insurer won’t make any payment towards your vehicle’s repair costs. Your basic no-fault insurance only pays benefits towards your medical expenses, lost wages, and the like.