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Know the Law: Preventing premium increases from bad roads

Posted at 6:30 AM, Jun 16, 2018
and last updated 2018-06-16 06:30:20-04

Preventing Premium Increases from Potholes in Michigan and Other Contributors to Poor Roads

Even though the Michigan Legislature is on a summer break during the campaign season, the legislative session does not end until the 2018 calendar year is over. This means any bills that have not yet been decided on can still be passed later in the session. A bill that has not yet been decided on, House Bill 4279, says insurance companies cannot raise auto insurance rates for vehicle damage caused by state roads, including damage caused by potholes in Michigan.

As we all know, Michigan roads are not the best in the country. House Bill 4279 would help decide who should be responsible for paying vehicle damage from our bad roads.

Collision Coverage can Help Pay for Damage Caused by Potholes in Michigan

Although collision coverage is not required for Michigan motorists, it is important to have in order to protect your vehicle. Currently, when you hit a pothole in Michigan, auto insurance companies are able to raise your collision coverage rates. This is because hitting a pothole is said to be the fault of the driver, even though there are many potholes to try and avoid.

State legislators are saying that the cost of paying for damage should not be put on the people who pay auto insurance premiums. While this is going on, insurance companies are saying that they should not have to cover the cost of vehicle damage until the state fixes our roads.

Difficult to get the State to Reimburse you for Vehicle Damage

Unfortunately, there is a difficult process to go through to have the State pay for vehicle damage caused by potholes in Michigan. In order to be successful in this type of claim, you have to show that the State knew about the pothole for at least 30 days.

There is no telling when House Bill 4279 will be passed. If it does pass, we would be able to file a claim with our insurance company for vehicle damage caused by bad roads without the fear of having them increase our premiums.