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Q

I recently hit a legally parked car while trying to avoid a collision with an oncoming car. The police were called and a report was made, no ticket was issued. I have PLPD insurance and live in Michigan. The insurance agency will be notified. I am 18. Will this affect my insurance rates?


A

In Michigan, what is known as PLPD (public liability and property damage) is basic insurance, thus just the minimum state required liability limits. There are 3 parts to the basic no-fault insurance that must be carried on a MI registered vehicle.

Michigan state law requires personal injury protection (PIP) of at least $10,000; property protection (PPI) and residual bodily injury and property damage liability (BI/PD). In the case of your collision it would appear that a claim will go under the property protection portion of your insurance policy.

PPI under Michigan's no-fault laws pays up to $1 million for damage your car does in MI to other people's property, such as building and fences. Usually other moving cars would not be covered but you hit a parked vehicle. According to the MI Financial and Insurance Services site, PPI does pay for damage your car does to another person's properly parked vehicle.

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Since it would appear that your insurance company will have to pay out a claim on your behalf, your insurance rates could be affected. To find out if claims such as this can affect your rates, speak with your insurance carrier and/or contact the MI Office of Financial and Insurance Services (OFIS) which offers help on understanding what affects your premium.

Michigan law requires insurers writing individual policies to at least annually provide the policyholder with a description of the rating classifications they use in setting their rates. This notification must occur with the notice of the renewal of the insurance policy. So if you have the last notice from your insurance provider, it should explain their rating system and how claims might affect your premiums.


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1 Responses to "I recently hit a legally parked car while trying to avoid a collision with an oncoming car. The police were called and a report was made, no ticket was issued. I have PLPD insurance and live in Michigan. The insurance agency will be notified. I am 18. Will this affect my insurance rates?"
  1. Anonymous

    Answered all of my questions in detail for my specific situation.

      Reply»