How to Read Insurance Policies

Knowing how to read and understand the fine print of insurance policies is not an easy task. A Michigan car accident attorney can provide guidance when injured victims have difficulty interpreting their insurance policies.  This includes all types of coverage and policies in force that could assist the accident victim in receiving just compensation for accident injuries, such as no fault (first party) auto insurance, uninsured and underinsured motorist coverage, excess and umbrella and other coverage the accident victim may be eligible for.

Michigan car accident lawyers have seen far too many people lose out on important benefits because they were unaware of important filing restrictions, buried in their policies. When reviewing an insurance policy, be sure you have the complete policy, including any notification of coverage changes from year to year that you may have saved.  This can also include pamphlets or explanatory notes that are mailed with renewal statements, reflecting any policy terms and changes.   Most policies include: declarations, conditions, insuring agreements, and exclusions with conditions.

Many auto insurance policies pose strict “policy driven” notification requirements (such as 30 days notice for hit and run accidents).  When car accident victims do not respond to notification requirements on time, they can lose their coverage. For this reason it is critical to carefully review your auto insurance policy, entirely. Many contracts have separate provisions for uninsured and underinsurance coverage requiring very prompt notice, and insurance carriers can change their policy filing requirements at any time.  Most automobile accident attorneys in Michigan are familiar with the more restrictive filing limits posed by major insurance carriers, and can caution injured victims on what to look for immediately following an accident.

It is also important to check insurance policies for any coordinated benefits and review any additional contractual coverage (such as underinsured or uninsured).   Michigan auto accident attorneys have seen unadvised clients lose thousands because of issues with health insurance plans, managed care plans, ERISA plans, coordinated vs. uncoordinated policies. Most policies are coordinated because they are less expensive, as the health insurance pays first.  With uncoordinated coverage, victims may receive the “double dip recovery” - where the health insurance pays the medical and auto insurance pays the accident victim for medical expenses. 

When receiving ongoing medical care for car accident injuries, having a solid understanding of insurance policies can help ensure that health care providers bill appropriately. When the patient is not informed or a car accident lawyer is not involved, most providers will bill the “easiest” insurance company or bill no fault insurance first – which can be an expensive mistake.

Liability limits listed on your auto insurance policy such as (20/40/10), represent the following:

• First number: bodily injury liability maximum for one person injured in a Michigan car accident
• Second number: bodily injury liability maximum for all injuries in one accident
• Third number: property damage liability maximum for one accident

But, understanding exactly what those numbers represent in relation to a car accident case often requires interpretation by an experienced car accident lawyer.

Again, be sure to adhere to appropriate notification and filing deadlines and don’t hesitate to contact a specialized auto accident attorney in Michigan for guidance on how to interpret your combined policies. 

Our Michigan car accident lawyers can be reached at 800-777-0028.