Today it seems that so many people just buy insurance simply thinking that they are "fully insured." Why? Because that is what the agent tells you right? Well . . . not exactly. The problem is they don't tell you the whole story. The truth of the matter is that if you live in Michigan you likely have a lot less insurance than you think.
If you haven't heard about the "home exclusion," the "household exclusion", or the "family exclusion", you might want to dust off that old car insurance policy before you have your wife, husband, child, or friend drive your vehicle because the chances are that your insurance company has buried this little beauty in your insurance policy under the exclusion to liability portion.
The exclusion reads that YOU or any
FAMILY MEMBER of yours will
not be insured for
bodily injury as a result of an accident.
Now that doesn't seem right does it? If you get hurt you don't have the insurance you paid for? Well if you bought insurance for $50,000, $100,000 or even $1,000,000 it doesn't matter. If you, your husband, your wife, your child, or anyone in your household, gets seriously hurt and was a passenger in the car it doesn't matter.
If you, your wife, husband, or child end up having serious injuries as a result of an accident in your car and they were also a passenger at the time, this clause will limit what you/they can receive through your policy.
The limit is what the Michigan Financial Responsibility Law states is the minimum. What does the Michigan Financial Responsibility Law state the minimum is? Well your policy likely will not state that amount. Why? Because your own insurance company is too embarrassed to even tell you. The amount is $20,000 per incident or $40,000 per occurrence. This essentially means that you,
at max, get $20,000.
If this seems wrong to you, it's because it is. There is nothing more deceptive then insurance companies hiding clauses in your policy that they know won't be read, and know that your agent will not tell you about. The chances of you being a passenger in your own car or someone in your family or household being a passenger in your car are pretty darn good. In fact I would say it's extremely likely.
But no way would Courts up hold this? Right? This is too egregious even for insurance companies' right? Unfortunately, wrong again. The Michigan Court of Appeals has upheld this clause in more than one case. To them it doesn't seem to matter that it deceptively keeps you from getting the insurance you paid for.
It seems that there isn't much that can be done about this abomination. We can keep hoping the courts start using a little more common sense but that seems about it. However; there is one more thing you can do. CALL YOUR AGENT.
Call your agent today. Ask them . . . if someone else is driving my vehicle and I get hurt as a passenger how much liability insurance do I have on the policy. They might try and tell you that you're "insured" or that you shouldn't worry you'll have "full coverage," but don't settle for that answer. Tell them to tell you HOW MUCH. Will my liability insurance be $50,000, $100,000 or $300,000 like it says on the front of my policy or will it be less. Ask them, is there a household exclusion to liability or not. Even though you live in Michigan you don't have to keep paying for insurance that doesn't insure you or your family. CALL YOUR AGENT.
The Clark Law Office Represents People, Not Insurance Companies. Do you need a
Michigan Accident Lawyer or
Personal Injury Attorney? Call us today @
517-347-6900 for your free consultation.