Edit: Several people are saying that they don't raise your rate in Michigan if you're not at fault in an accident?? I'd been told the exact opposite by every person I know, so is that true? I've tried looking it up online and keep finding mixed results. Can someone send me a source? If I've been wrong about this that would make the life of me and most of my friends so much easier.
So almost about a year ago an AT&T van went through a light and hit my car. It was in the Detroit area and I’m not sure whether they ran a red light or the light just freaked out (the light at that intersection has been known to show the wrong colors at times), but in either case they collided with the driver’s side of my car. My car was damaged and I ended up going to the hospital for glass shards from my broken window left in my arm (scars that I still have), but we both did still have vehicles that we were able to drive away afterwards. Now, a year later, I just received a letter from AT&T claiming that I owe them nearly $13,500 in damages from a collision that they state that I caused to their vehicle and are demanding that I settle it either with insurance or out of pocket. I had insurance a year ago, but I don’t anymore, and I definitely can’t pay anything close to $13,500 out of pocket. I called and left them a message about it and am waiting to hear back, but I’m obviously very distressed and not sure what I can do about the situation.
At the time I did the math and decided that it was cheaper to settle my hospital and car repair bills out of pocket rather than report to and use insurance since Michigan is a no-fault state (meaning that my insurance would go up whether or not I was at fault if I reported it). Yes, I’m aware that’s legally dubious, but I’m very low-income so I have to make difficult choices to pay rent sometimes. However, this also means that I don’t have an insurance claim on file for the situation.
Would the police report be enough to dispute this or does Michigan insurance make it so I have to cover their damages no matter what? What can I do?
AT&T charging me $13,500 for damages to a vehicle that hit me
byu/BrasswithSass inInsurance
Posted by BrasswithSass
7 Comments
If you had insurance the day of the accident, that is the issuance that will be handling it. Reach out to your insurance
>At the time I did the math and decided that it was cheaper to settle my hospital and car repair bills out of pocket rather than report to and use insurance since Michigan is a no-fault state (meaning that my insurance would go up whether or not I was at fault if I reported it)
Whoa, hold up, That’s not what “no-fault” means at all and that’s not how it works. Do not listen to whomever told you that.
What you need to do is contact your carrier immediately and report the claim. Since you had active coverage at the time of the accident there shouldn’t be an issue in terms of coverage. Gather any invoices and documentation you have regarding your medical expenses and vehicle repairs and see if it’s possible to collect reimbursement for those.
The other option is to pay the $13,500 yourself but that would be an insane move, quite frankly. Report the claim. Get rid of your stress and maybe even put a few bucks back into your pocket.
1. Reach out to your insurance you had at the time to report.
2. Send them the letter from AT&T.
Your insurance would handle this. Also, ask your adjuster what exactly AT&T would be entitled to. My understanding is it would be the mini-tort of $3k, if you were found liable after an investigation.
If I had a dollar for every time I heard “it’s a no fault state so I didn’t report it”, I’d have at least enough to buy lunch once a week and not sweat it.
I’m in Michigan and had an not at fault accident earlier this year just got the renewal and went down $7. Have had a couple other not at fault accidents years ago and it has never increased my rates.
They are trying to subrogate against you because they think you are uninsured. They are allowed to do that in Michigan, regardless of fault. You need to reach out to the insurance company you had at the time and have them verify coverage to the other insurer.
You can challenge AT&T’s claim. Use the police report and mention the faulty light. A lawyer’s help could be crucial here.