Helping Get Medical Bills Paid After a Crash in Michigan
A young man was driving his mother’s car, when another car failed to yield. The collision caused major damage on the driver’s side. The speed at impact was estimated at 60 mph. Our client’s injuries were numerous, including a left shoulder tear requiring surgery, a low back herniation requiring multiple steroid injections and a torn ACL in the left knee. Our client also sustained a closed head injury from a concussion. He had an enormous amount of medical bills.
The auto insurance carrier refused to pay personal injury protection (PIP) no-fault benefits so our client had to contact the Detroit car accident lawyers at the Lee Steinberg Law Firm for help. Because of our experience and aggressive approach, we were able to get all of his unpaid medical bills, replacement services and attendant care paid.
The Aftermath of the Detroit Car Accident
Our client was driving his mother’s vehicle, but that insurance carrier rescinded the policy claiming mom did not disclose that one of her other sons was living with her when she purchased the policy. Under Michigan law, this insurance carrier should have paid his medical bills and other no-fault benefits. But because it rescinded the policy, it denied it was responsible for paying anything.
Michigan car insurance carriers attempt to rescind policies all the time. They argue that because something was minor was omitted when the policy was taken out, they affected the price of the premium. Because it affected the price, by law they can rescind or cancel the entire auto policy. Car insurance companies do this by asserting something called a material misrepresentation or fraud.
Under most car insurance policies, the insurance carrier can void coverage if a material misrepresentation or fraud occurs. This is what happened in this case.
Because of the denial, our client was forced to file a lawsuit again his mother’s insurance carrier. Our law firm also got the Michigan Assigned Claims Plan (MACP) involved and the MACP assigned another auto insurance carrier to pay the claim. Naturally, this second insurance company refused to pay, arguing the original insurance was primary for payment.
Meanwhile our client incurred more than $400,000 in medical expenses.
Our Legal Team Builds a Case and Gets All the No-Fault Benefits Paid
From the beginning, out law firm was aggressive in finding out the exact reason for the insurance company’s denial. We filed a motion with the judge demanding that under the law and facts of the case, mom’s insurance company was in fact the correct carrier to pay all outstanding PIP benefits. The judge agreed and ordered this insurance company to pay the entire claim.
Fraud and Misrepresentation in Michigan Car Accident Cases:
Insurance carriers and agencies such as Progressive and LA Insurance have become extremely aggressive at alleging fraud on the part of their policyholders. After a car wreck, your own car insurance company is supposed to pay what are known as PIP benefits, or no-fault benefits. These benefits include:
- Medical bills
- Lost Wages
- Replacement Services
- Attendant Care
- Transportation
- Out-of-Pocket Expenses
But instead of paying, the car insurance carrier will deny the claim, arguing there was a material misrepresentation when the policy was procured or purchased. A material misrepresentation must be some piece of important information not disclosed to the insurance company or agent when the policy was purchased. This can include the information of who will be operating the vehicle, where the vehicle stays at night (garaged) and the purpose of using the vehicle.
Because insurance carriers use this information to assign a risk to the policy, they will charge a premium based on this risk. If important information is not disclosed, the car insurance company can allege they were materially misrepresented. This allows them to completely void or cancel the policy after the crash.
We Handle Your Injury Case So You Can Focus on Recovery
We know the tricks auto insurance companies in Michigan like to pull. In this case, they tried to argue another person was supposedly not disclosed as living with our client’s mother when she purchased the policy. In using this argument, they then tried to say our client’s mom misled the insurance company. They used this to void the policy after the crash occurred.
During this time, our client was very stressed about the large amount of outstanding medical bills. He was worried about the bills going to collections and hurting his credit. Family members who had taken time of work to help with his rehabilitation had not been paid either. There was frustration all around.
However, our law firm took this burden off our client. We provided a roadmap to show him how we were going to get all of his medical bills paid. With evidence we collected, showed the judge that mom’s insurance company was in fact the correct insurance company to pay the claim. In doing so, we helped our client get all of his medical bills paid.
Our Detroit No-Fault Car Accident Lawyers Can Help You
If you are injured in a bad wreck, our team of experienced Detroit car accident attorneys can assist you. At the Lee Steinberg Law Firm, we care about our clients and allow them to focus on getting better. We fight the insurance companies and their lawyers so our clients can focus on getting better.
We have helped out clients receive hundreds of millions of dollars. Give us a call at 1-800-LEE-FREE (1-800-533-3733).
