Which claims you might be able to take to small claims court without a lawyer? As a general rule of thumb, you case should not involve

• serious long-term or permanently disabling injuries
• severe injuries
• medical malpractice
• toxic exposure

If you case does not involve these issues, the insurance company may well be willing to negotiate and settle out of court. Many times, it’s simply cheaper for them to pay you than to prolong the fight.

from Detroit News Feb, 16, 2008

We agree with The Detroit News that Michigan drivers need options when purchasing medical coverage through their auto insurance (“Insurance reform plan misses root of problem,” Feb. 11). Our coalition believes offering people a choice in the amount of personal injury protection they are required to buy will reduce premium rates. We have a plan — called PIP Choice — to do that.

We’re happy Gov. Jennifer Granholm acknowledged this problem in her State of the State address. Unfortunately, the state insurance advocate’s proposal lacks the urgency needed to reduce rates now. Parts of Butch Hollowell’s proposal might help slightly, but it could take years to grind through the process. Drivers need relief now.

Michigan is the only state that forces drivers to purchase unlimited medical coverage, even if they are insured through personal health plans or seniors through Medicare. This overlapping coverage and one-size-fits-all law is wasteful and costly to drivers.

Roughly 95 percent of claims in Michigan are under $50,000, yet 100 percent of Michigan drivers are forced to purchase the unlimited amount. Drivers should be allowed to choose a plan that works best for them.

At last count, 55 percent of Detroiters drive without car insurance. The dire economy coupled with the city’s astronomical premium rates will cause that number to rise and force even more motorists to drive without it.

Detroit has the highest premium costs in the country, sometimes costing up to $4,000 per year. This is outrageous. PIP Choice could reduce their premium rates up to 16 percent.

Diana Christensen

Drivers for Savings Coalition

Lansing

Depending on the accident, medical attention may or may not be required.  In an automobile accident, for example, the individual who caused the accident will be responsible for any repairs to the victim’s automobile, along with the previously mentioned compensation.  Most individuals hire a lawyer soon after the accident occurs even though settlement negotiations will typically not begin until after medical treatment has ended.

After concluding medical treatment, a personal injury lawyer will begin to negotiate with the insurance company representing the person who caused the accident.  During this time, lawyers will assess the amount of medical bills, doctor reports and diagnosis, lost wages, damages and will attempt to estimate a fair amount of pain and suffering.  After gaining your approval, personal injury lawyers will submit a proposal to the insurance adjuster for consideration.  It generally takes 30 days for a response, which is expected to be a counteroffer.  At this time, lawyers will discuss the offer with their client and see if a fair settlement can be reached.  If not, the lawyer will prepare another letter explaining that the adjuster’s offer is not acceptable and will, once again, request that the case be settled for a slightly lower amount than the original proposed amount.  This situation is a test of each side as the adjuster wants to settle the case for as little as possible while the lawyers want to make sure their clients are properly compensated.  After several letters back and forth, and perhaps some telephone calls, the lawyers will advise their client when a fair offer has been reached.  While they cannot instruct their client on what to do, they can advise them on the fairness of the offer and how that figure may change if the case were to proceed to trial.

For reasons of both time and expense, the majority of personal injury cases are settled out of court.  Once a trial is granted, attorney fees and court costs increase dramatically.  An attorney receives a pre-negotiated amount of the client’s settlement, but receives a larger percentage if the case moves to trial.  There are a number of lawyers who handle personal injury cases and it is always important to select one that is most sincere and seems most knowledgeable about the process.

The information in this article is to be used for informational purposes only.  It should not be considered as, or used in place of, professional legal advice.  Individuals who need legal help should consult one of the lawyers in their area who can assist them with their questions and concerns.