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I wasn't insured (Michigan)

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dymac

Junior Member
What is the name of your state? Michigan

Ok, here is what happened. I accidently let my insurance policy expire without renewing it. Yes, very stupid and irresponsible on my part. My wife was involved in a car accident in July 2006. No one was hurt but both vehicles were totalled. In Jan I receive a letter from a collection agency saying I owed Triple A (AAA) insurance company $10,700 for an accident in which my wife was involved in. I got advice from a lawyer that specializes in debt collection and he sent them a letter requiring the collections agency to provide me with proof that they validated the debt. The collections agency sent me a copy of the accident report and the other drivers insurance policy. The lawyer said that it may be good enough and it may not, but to record all phone calls and keep all letters to protect myself.

Anyways, my question is what do you think will come of this? I have not heard from the collection agency since I sent them the letter. I have heard that most times the insurance company will take people to court to get the money. Do you think they will file suit against me and if they do how will I know I'm being sued?

Thanks
 


seniorjudge

Senior Member
Q: Do you think they will file suit against me and if they do how will I know I'm being sued?

A: Yes and (maybe) a deputy will serve you with a summons.
 

dymac

Junior Member
Q: Do you think they will file suit against me and if they do how will I know I'm being sued?

A: Yes and (maybe) a deputy will serve you with a summons.
So I will know before anything happens right? I will have ample time to settle the debt before I have to go to court?


Thanks
 

ecmst12

Senior Member
From what I have read here, this is not legally your debt (as in, it can't be reported on your credit report) UNLESS there has been a lawsuit/judgement against you affirming that you owe it. A judge hasn't ruled that your wife was at fault for the accident and therefore owes this money. I don't know if you're disputing fault but if you want to do that, you will have to let them take you to court over it, then you(your wife) can argue the facts of the accident and see if a portion of the fault will be assigned to the other driver. You (your wife) also have not had a chance to dispute the amount they came up with for the fair market value of the other vehicle. It's not like a credit card bill that you signed a contract to pay; this is something that they have to prove that you owe before you (legally) owe it.

Of course, if you don't dispute that your wife was 100% at fault, letting it go to court could end up costing you more money in the long run. In that case, if you think the amount is fair, you should contact the insurance company and try to settle it with them directly before it gets that far.
 

dymac

Junior Member
From what I have read here, this is not legally your debt (as in, it can't be reported on your credit report) UNLESS there has been a lawsuit/judgement against you affirming that you owe it. A judge hasn't ruled that your wife was at fault for the accident and therefore owes this money. I don't know if you're disputing fault but if you want to do that, you will have to let them take you to court over it, then you(your wife) can argue the facts of the accident and see if a portion of the fault will be assigned to the other driver. You (your wife) also have not had a chance to dispute the amount they came up with for the fair market value of the other vehicle. It's not like a credit card bill that you signed a contract to pay; this is something that they have to prove that you owe before you (legally) owe it.

Of course, if you don't dispute that your wife was 100% at fault, letting it go to court could end up costing you more money in the long run. In that case, if you think the amount is fair, you should contact the insurance company and try to settle it with them directly before it gets that far.
Thank you for the response.
 

alnorth

Member
Who do you believe was at fault, and by what percentage? Obviously the other insurance company thinks you are 100% at fault, what do you think? If you agree with them, you may as well try to work out a deal now, but if you think it was something like 50/50 or 100% their fault, you could have a fight ahead of you.
 

dymac

Junior Member
Who do you believe was at fault, and by what percentage? Obviously the other insurance company thinks you are 100% at fault, what do you think? If you agree with them, you may as well try to work out a deal now, but if you think it was something like 50/50 or 100% their fault, you could have a fight ahead of you.
In my opinion it my 50/50. An eyewitness also said it was both drivers fault.
 

FlyingRon

Senior Member
You need a lawyer who specializes in Michigan's arcane no-fault system. Your fairly screwed for not having insurance (which you were required by law to have).
 

moburkes

Senior Member
Okay, guys. In MI, each driver goes through his own insurance company for the his own medical bills and vehicle damage. Can anybody point to that law that was talked about in another thread in which, if you are uninsured, you can be sued for other than pain and suffering?
 

dymac

Junior Member
I believe that it doesn't matter who's fault it was. I was uninsured so I will have no chance if it ever went to court.

It is no-fault insurance in Michigan, meaning my insurance pays for my damage and the other drivers insurance pays for their damages, unless one driver isn't insured, then the unisured driver is responsible for the other drivers damages as well. I'll be biting the bullet on this one. Hopefully they can work out some type of settlement.
 

ecmst12

Senior Member
No, I don't think that's right. The accident does not automatically become your fault just because you have no insurance. And I spent a long time searching and couldn't find anything that said you'd be responsible for more then $500 for someone else's damages in an accident that you caused, even if you weren't insured. But I couldn't find anything to disprove it either.
 

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