Posted: Sun Feb 25, 2007 3:24 pm Post subject: Is it the CAR or the DRIVER that is insured???
Hi everyone! It's nice to find you guys!
I live in Michigan, and my question is in regards to Auto Insurance. I have been told that in Michigan, the Law says that it is the AUTO that is insured, NOT the person or persons driving it...which in essence means that anyone who drives the vehicle is automatically insured. All Carriers that I have contacted ask "how many in the household will be driving the vehicle, and what are their ages?" When I tell them about my child being a new driver (16 w/permit) they tell me that once she has her license the rates are going to go up sky high! If this makes sense to anyone (my post), could someone please enlighten me as to whether or not any of this is true?!?!
Hi..Its good to hear that you're from Michigan!
I think the Auto Insurance laws are pretty much clear and beneficial for you. The No-Fault Auto insurance is a must for all driving over there. Yeah, I agree that you don't really have too much to choose while buying a policy but yeah you really have the choices to pick up while you're gonna pay for it!
You're really protected with retrieval of lost incomes and medical costs under this No-Fault Law. Yes, insuring the vehicle assures that those who are injured in the accidents would be compensated. This law also helps restricting the use of the Tort Liability Law which has been not so effective over the time.
Regards,
Fatman.
You are actually discussing two different things, but the short answer is yes... you are insuring the vehicle.
Bottom line, the state laws state that the _vehicle_ needs to be insured, it never refers to a driver. That is the bottom line when it comes to insurance.
Without getting into too much detail, the insurance policy does insure the vehicle and most anyone using it with your permission. As far as asking about drivers, this is mainly for policy rating purposes. As mentioned above, this is where the two different subjects come up. However, there can also be penalties under the policy for not listing everyone in your household on the insurance applications (this usually amounts to a non-renewal and not a denial of coverage... unless the policy is recinded (cancelled as never in-force)).
When an insurance company rates a policy they almost always rate the highest risk driver with the highest risk vehicle. As this is the highest liability the carrier will be faced with. Some insurance companies give a little more consideration in this area.
However, the policy _does_ also offer coverage to those that are listed. For example, when you drive someone elses vehicle, your policy provides _you_ with liability protection (however, it's excess over the owners insurance in most cases).
[Now I'm just waiting for the ""I think your policy will tell you", I want my money"" post]
Yeah hi! I too feel the no-fault thing has really worked well since 1973. The said benefits that come in the form of medical treatment assistance and wage loss compensation have always been enough for the victims. Now they don't need to bother about the financial crisis till the lawsuits get settled. I think you guys should be thankful. Its good to see your queries getting answered through a vivid platform over here. Pour in more of what comes to your mind.
Till then, ArindamSenIndies
Hi Mrs. Biggo!
See all have been said ...before I could actually come across your query!
With this kinda potentiality in the form o' Fatman, TCope, ArindamSenIndies.....we'd be able to solve all o' em...don't we ?Thanks to all of you guys for this wholesome research that brings us together.
Huh, now just gotta have the priviledge to add a few words for you.
As you can see, the three coverages are mandatory for you in the form of Personal injury, Property and Residual Liability and I presume you have them in place already. Now as you've expressed your concern regarding the rise of premiums, I'd like to say in this regard, that the rise in rates have been quite reasonable as compared to many of the other states. This might sound absurd but when you look at it in terms of the benefits
available it really doesn't sound that much harsh. And yes, the premium hike has been commensurate with the rise in lawsuit expenditures, mounting costs associated with all medical benefits. There are also the factors like the inflated healthcare costs and the auto repair costs to contribute towards it. Am I sounding logical ??
Do lemme know,
Sasha T.
You shoud see my boss! 4 kids driving his premiums are crazy!!! Yes having young drivers makes the cost go up becuase if for some reason they drive one of your cars they are more likely to get in an accident. _________________ ~Monique~
Thank you all for your insights and responses...I am using all of the info that I am gathering to pummel my agent! 
