Michigan Insurance Lawyer says Drivers Should Still Steer Clear of Insurance Company
In the past 15 years, I’ve dealt with every insurance company in Michigan, and I’ve seen how they’ve treated hundreds of my clients.
Normally I tell people not to choose State Farm for auto insurance. In a state without bad faith laws and punitive damages, I think State Farm has treated its policyholders in Michigan worse than many of the insurance companies I see. State Farm adjusters often cut benefits off, deny payments, or put their policyholders under “investigation” and surveillance – causing tremendous hardships for no reason.
However, State Farm is also one of the three biggest auto insurance companies in Michigan, and thousands of people are insured with them. Therefore, even though I do not personally recommend State Farm, I do want their current insureds to be aware of a very important new option State Farm is offering in Michigan: underinsured motorist coverage (UIM). State Farm was one of the last insurance companies refusing to offer underinsured motorist coverage until this recent change, and as I understand it, they are not advertising the change to policyholders.
Underinsured motorist coverage provides a valuable source of legal recovery after an accident, when someone is injured by another driver who does not have adequate insurance coverage. State Farm now offers underinsured motorist coverage up to $250,000 per person and $500,000 per accident. This means that in the event of a car accident, State Farm will pay up to $250,000 in insurance coverage per person, even if the person who causes a serious car accident only has $20,000 in coverage (the minimum) and no assets. State Farm will pay up to the per accident maximum of $500,000 only if multiple people are injured. Keep in mind, no person can get more than $250,000, even if their personal injuries are worth far more, because the amount is contractual.
If you have State Farm and you decide to stay with the company, I strongly recommend that you add on underinsured motorist coverage. Due to the struggling economy, there is a good chance that when a serious car accident or truck accident occurs in Michigan, one of the drivers will be uninsured or underinsured. Tell your insurance agent you want both uninsured and underinsured motorist coverage. Almost every insurance company in Michigan now offers these important coverages. Meanwhile, read about the 10 worst insurance companies in Michigan. State Farm makes the list.
Michigan Auto Law exclusively handles Michigan car, truck and motorcycle accident cases throughout the entire state. To talk to an auto accident lawyer contact us at (800) 777-0028.
Steve Gursten is head of Michigan Auto Law. He is president of the Motor Vehicle Trial Lawyers Association and past co-chair of the Michigan Association for Justice Automobile Accident No?Fault Committee. He frequently writes and speaks about Michigan No-Fault laws, and is available for comment.Steve Gursten wants current State Farm insureds to be aware of a new option they can now obtain called underinsured motorist coverage.