The motor vehicle liability requirements in Michigan are the source of much public debate and frustration, particularly among those for whom it represents a substantial monthly burden. Lawmakers recently adjusted no-fault insurance requirements to allow individuals to opt out of the unlimited medical coverage available to those who bring claims against the state insurance program.
Before you rush to be one of those people who does not pay for a full no-fault policy, you should first consider the reasons why lawmakers enacted these rules in the first place. Traumatic brain injuries (TBIs) and their catastrophic consequences on health and finances are a leading reason why lawmakers wanted unlimited medical coverage available to the victims of serious crashes.
In the event that you experience a collision and you or someone you love suffers a TBI as a result, you will likely feel grateful to have a no-fault insurance policy in place.
Brain injuries typically exceed the maximum coverage limit on insurance
Different states around the country have different minimum requirements for personal injury and medical coverage for motor vehicle liability insurance. In many states, the minimum requirement is often as low as $25,000 for a single injured individual.
When you consider the fact that an analysis of the cost of brain injury indicates they can cost anywhere from $85,000 to as much as $3,000,000 for a lifetime of care, it is not hard to see why unlimited medical benefits can be invaluable to those with brain injuries and their loved ones.
Without a more robust insurance policy, individuals will have no choice except to take legal action against the driver who caused the crash to cover those costs. What you recover will depend not only on the evidence you can present to the courts but also on the actual income and assets the person who caused the crash has available. Even if a jury or judge awards you millions of dollars to offset the costs you’ve had, if that person can’t pay, you will have to pay for care on your own.
No-fault protects you regardless of who caused the crash
Another problematic loophole for insurance coverage in many states is the fact that an uninsured driver leaves people very vulnerable to substantial financial losses after a crash. Unless the other driver has special riders that protect them from an uninsured or underinsured driver causing a collision, there may not be any available insurance coverage for those who get hurt by someone who did not have active insurance when they caused a collision.
No-fault insurance policies get their name from the fact that coverage applies to the person who paid for the policy and the people in their vehicle, regardless of how law enforcement officers allocate responsibility after the crash.
