This would not be an issue in Michigan as we have the best auto insurance in the country. Our personal injury protection (PIP) which is a mandatory coverage along with the no-fault coverages, would provide this victim with unlimited medical coverage due to the crash for his entire lifetime. The PIP would also cover the costs to have his home made handicap accessible. Kudos to Michigan Auto Insurance – the best in the U.S.!
Wow, Nancy — I’ve never heard of an
unlimited PIP and one that remodels the
house for handicap needs. That sounds
great, other than, the premium must be
excessively high.
Well Tom, I am sure the excess carrier totally supported the position that their coverage was not applicable to this loss. Some states have laws that say if there is coverage purchased, it is available if negligence exits.
Also, I wonder who pushes the laws protecting the insuror’s excess coverage (could the insurance industry possibly be “driving” this?).
Selling coverage where there is no exposure is also a pretty good way of having a 0% Loss Ratio=Making $$$ for the insurance company.
strange but true – MI has unlimited PIP. The high cost associated with this is offset in some cases by an optional deductible (yes, a deductible on PIP). That, and state regulations, of course.
We have a similar set up here in Australia – you get the Compulsory Third Party (personal injury) when you register your vehicle, costs anywhere from $256 – $1000 depending on vehicle size, whether it has other insurance, age of driver, and claims history. Average premium is $520. Not bad for a lifetime of help…
According to Ins. Journal report of 3/25/05, the MI Claims Catastrophic Assoc.(MCCA) pays out $50 Million per month and assesses every policy $141.70 annually. You have to wonder how many people drive without insurance given the size of that surcharge. Yes, you can mandate lifetime coverage, but can you afford it?
A couple of points on the NE case. First, we are talking aboutn liability coverage not PIP. Second, from the few facts available it sounds like the insurer offered coverage to the county in the event that it had multiple separate $1 MM claims and not excess coverage for any one claim in excess of $1 MM, so it was providing a benefit to the county for the premium charged.
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This would not be an issue in Michigan as we have the best auto insurance in the country. Our personal injury protection (PIP) which is a mandatory coverage along with the no-fault coverages, would provide this victim with unlimited medical coverage due to the crash for his entire lifetime. The PIP would also cover the costs to have his home made handicap accessible. Kudos to Michigan Auto Insurance – the best in the U.S.!
This strikes me as a sensationalist article of the type designed to cast the insurance industry in a bad light.
The unfortunate plaintiff in this case is a victim of a state statutory cap on damages, not of anything remotely related to an insurance company.
Who writes these articles or chooses the headlines?
Wow, Nancy — I’ve never heard of an
unlimited PIP and one that remodels the
house for handicap needs. That sounds
great, other than, the premium must be
excessively high.
Well Tom, I am sure the excess carrier totally supported the position that their coverage was not applicable to this loss. Some states have laws that say if there is coverage purchased, it is available if negligence exits.
Also, I wonder who pushes the laws protecting the insuror’s excess coverage (could the insurance industry possibly be “driving” this?).
Selling coverage where there is no exposure is also a pretty good way of having a 0% Loss Ratio=Making $$$ for the insurance company.
strange but true – MI has unlimited PIP. The high cost associated with this is offset in some cases by an optional deductible (yes, a deductible on PIP). That, and state regulations, of course.
We have a similar set up here in Australia – you get the Compulsory Third Party (personal injury) when you register your vehicle, costs anywhere from $256 – $1000 depending on vehicle size, whether it has other insurance, age of driver, and claims history. Average premium is $520. Not bad for a lifetime of help…
According to Ins. Journal report of 3/25/05, the MI Claims Catastrophic Assoc.(MCCA) pays out $50 Million per month and assesses every policy $141.70 annually. You have to wonder how many people drive without insurance given the size of that surcharge. Yes, you can mandate lifetime coverage, but can you afford it?
A couple of points on the NE case. First, we are talking aboutn liability coverage not PIP. Second, from the few facts available it sounds like the insurer offered coverage to the county in the event that it had multiple separate $1 MM claims and not excess coverage for any one claim in excess of $1 MM, so it was providing a benefit to the county for the premium charged.