Sterling Auto Insurance in Michigan

When it comes to getting Sterling auto insurance, any driver has to educate himself about the no-fault insurance system. Knowing the system gives drivers a better understanding as to how their Sterling car insurance premiums are formulated; thereby letting them take proper courses of action to tackle these high costs.

Sterling Auto Insurance in Michigan – Dealing with the No-Fault Insurance System

Sterling adopts a No-Fault system of insurance as required by law of the state of Michigan. Under this system, an insurance company is required to pay the amount of coverage to the insured even if he is the one who caused the accident or any other unfortunate incident in the first place. It is precisely what this term says - no fault. It means that insurance companies should not even bother to check whose fault it is. In a nutshell, if there is an accident, a company pays up.

It looks that simple, but in reality, it is not.

In Sterling, State law requiring providers to make use of this No-Fault system is a challenging one because a lot of claims have reached higher courts. Since Michigan is only one of the states in the United States of America applying this program, it means that you will have to deal with it wherever you go. The program actually requires that a person injured must rely on his own coverage. It means that the insured can only claim under his insurance. There is nothing he can claim against the insurance of the other party, even if it was the other party who caused the accident.

How do we explain this? A general rule is that if a driver causing an accident is negligent or has fault, he must be made liable for all damages that result from it. Under this No-Fault system, if a damage or injury is not considered to be substantial or if they are only slight or negligible, the person causing it will not be liable in any way. If any, a company will only have to pay a minimum of $500 for tort. What is making things worse is that any injury suffered by a car accident victim will always pass through a threshold test which in the end will never be favorable to victims.

This threshold test is another factor making this system more troublesome. This test requires that an injury must be visible and that it must affect a part of the body which the injured person needs in his job or for everyday living. It sounds absurd, really, but that is what this law says. This requirement must be met before a victim can even make a claim against the one causing the accident.

What can we do to be secured as well as insured? What you need to do is to study the terms and conditions of this policy. If would not hurt to check out the No-Fault Act of Michigan and the Threshold Law. This will enable you to better prepare yourself in making a claim in case you figured in an accident. All it takes is a bit of diligence and a lot of common sense before you sign an insurance contract.

Local auto insurance quotes in your area can help you compare car insurance quotes for auto insurance coverage in all of the following ZIP codes in Sterling


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