Disclaimer: This article is for educational purposes only and does not constitute legal advice.
Detailed Answer
After a collision in Michigan, your insurer must follow strict rules under the Michigan No-Fault Act (MCL 500.3101 et seq.). For personal protection insurance (PIP) benefits, the insurer must pay within 30 days after receiving a complete application for benefits (MCL 500.3143). If the insurer denies or partially pays your claim, it must provide a written explanation stating specific reasons and cite the policy provisions or statutes supporting the decision (MCL 500.2006).
If your insurer delays payment without proper notice or denies your claim, consider these steps:
- Request a Written Explanation. Send a certified-mail letter to your claims adjuster asking for the reasons behind the delay or denial. Retain copies for your records.
- Review Your Policy. Check for appraisal, arbitration, or internal appeal clauses. Many auto policies include appraisal for vehicle-damage disputes.
- File a DIFS Complaint. Report unfair claims practices to the Michigan Department of Insurance and Financial Services at michigan.gov/difs. DIFS investigates insurers violating state law.
- Send a Demand Letter. Draft a formal letter detailing the facts, your claim amount, relevant statutes or policy sections, and a deadline for response (e.g., 30 days). Send by certified mail.
- Invoke Appraisal or Mediation. If your policy allows, request appraisal or mediation to resolve the dispute through an independent third party.
- File Suit if Necessary. For PIP benefits, you must file a lawsuit within one year of the insurer’s written denial (MCL 500.3145). For property damage, you can pursue a claim in small claims court or circuit court based on the amount in dispute.
Helpful Hints
- Document every interaction: date, time, name of representative, and summary of the conversation.
- Use certified mail with return receipt for all important letters.
- Track all filing deadlines and statute-of-limitations periods.
- Review your insurance policy thoroughly for dispute-resolution procedures.
- Consider consulting a Michigan-licensed attorney if the insurer continues to delay or deny your claim.