What is a Deductible and How is It Determined?
Just about every insurance policy carries what is called a deductible, but they are most common in an auto accident. For more information regarding a suitable insurance policy, contact a car accident lawyer in Michigan. A deductible is a certain amount of payment that you must make in order for the insurance company to cover the rest of the expenses. Depending on your particular insurance plan, the deductible can be extremely high or extremely low.
Usually, if you have a larger monthly payment the deductible will be much smaller than if your car insurance payment was lower. The deductible is usually a fixed quantity regardless of your insurance claim. For example, if your car is wrecked during an automobile accident, you will be required to pay the deductible before your insurance company will cover the rest of the costs. Let’s say that you have a deductible of $500 and the damages resulting from the accident are $10,000. You will be required to pay $500 before the insurance company will cover the additional $9500. There are even some insurance plans that do not require a deductible, but they are usually very expensive for this reason. Some insurance companies also use deductible reimbursement programs. These programs are designed to pay back your deductible after your insurance claim.
Are There Minimum Requirements for Car Insurance in Michigan?
All states have minimum insurance requirements for drivers to follow. If you do not have the minimum requirements required by the state, you are driving you illegally without insurance. If you have been in a serious car accident and find that your insurance does not cover all of your expenses, you should immediately contact a Grand Rapids Auto Accident attorney who regularly deals with insurance companies to help you with your case. The minimum requirement is different in every state and you should be sure to know the required minimum for the state are driving in. Even though many people just purchase the minimum required insurance, it is usually not the best option. For instance, if you were involved in a serious auto accident, the minimum required insurance may not cover medical expenses that you require. Michigan is one of the rare states that still have no-fault insurance law. You will find that increasing your minimum state insurance requirement is usually not that much more than what you are currently paying. I would recommend that you talk to your local car accident attorney and find the right amount of coverage for your particular situation. Then you should contact your insurance company and let them know that you want to upgrade your insurance for your car.