The "Full Coverage" Myth: Why Your Downriver Auto Policy Might Leave You Exposed
We hear it in our office every week. A client sits down, injured and worried about medical bills, and tells us, “It’s okay, I have full coverage.”
Then we look at the declarations page.
Since the Michigan auto insurance reform in 2019, the term "full coverage" has become dangerous. It gives drivers in Taylor, Southgate, and Trenton a false sense of security. The reality is that if you opted for anything less than Unlimited Personal Injury Protection (PIP), "full coverage" might actually mean "bankruptcy waiting to happen."
As attorneys who have spent decades fighting insurance giants, we want our Downriver neighbors to understand what they are actually signing up for.
The Hidden Danger of PIP Caps
Before 2019, every driver in Michigan had unlimited lifetime medical benefits for auto accident injuries. It was the gold standard. But to lower premiums, the state introduced "caps." Now, you can choose coverage limits as low as $50,000 or $250,000.
Here is the problem: Severe injuries do not care about your cap.
If you are rear-ended on I-75 or T-boned at a busy intersection on Telegraph Road, a night in the trauma unit and a few surgeries can easily exceed $250,000.
MRI and X-Rays: Thousands.
Emergency Surgery: Tens of thousands.
Rehabilitation/Physical Therapy: Ongoing for months.
Attendant Care: Expensive.
Once your medical bills hit that cap, your auto insurance stops paying. You are then left relying on your private health insurance (which may have high deductibles or exclude auto injuries) or, worse, paying out of pocket.
"Managed Care" Is Not Your Friend
Another trap we see is "Managed Care" options. Some insurers offer lower rates if you agree to use their network of doctors.
Imagine you have a trusted doctor at Corewell Health (Beaumont) in Trenton or Dearborn, but your auto policy forces you to see a specific provider across the county who prioritizes the insurance company's bottom line over your recovery. When you are in pain, you want your doctor, not the cheapest option the insurance company could find.
The "Order of Priority" Has Changed
It used to be that if a passenger didn’t have a car or insurance, they could claim benefits from the driver’s policy. That has largely changed.
If you have a child who doesn't drive or an elderly parent living with you, and they aren't properly listed or covered, they might be denied benefits entirely if they are hurt in a crash. The "Assign Claims Plan" (the state safety net) now has a strict $250,000 cap.
We Review Policies (and Fight Denials)
Insurance adjusters are trained to save the company money, not to explain the fine print to you. They often delay payments or deny valid claims hoping you will give up.
At Downriver Injury & Auto Law, we don't let them get away with it.
If you haven't been in a crash: Check your policy. We highly recommend keeping Unlimited PIP if you can afford it. It is the only true protection against catastrophic loss.
If you HAVE been in a crash: Do not assume the insurance company’s first offer is fair. Do not sign a "release" until you talk to us.
We know the tactics insurers use to devalue claims in Wayne County. We know the difference between a "soft tissue" offer and a settlement that actually covers your future needs.
Don't rely on a billboard slogan. Rely on experience. If you are confused by your No-Fault benefits or have been denied payment, contact us. We’ll help you navigate the maze.
