Car accident and injury: one couple’s insurance experience

A single moment on the road can set off a chain of insurance claims, especially when injuries are involved. Different parts of an auto policy kick in to handle medical bills, vehicle repairs, and other costs — and understanding how those pieces work together can make a big difference after a crash.

That’s exactly what retirees Mike and Mary learned after a 2019 accident. Broadsided by a driver who ran a stop sign, their car was totaled, and both ended up in the hospital. Living in Michigan, a no-fault state, meant payments came from both their own insurer and the other driver’s company.

Their experience shows how auto insurance works after a serious accident — and why it’s important to check that every detail on your record is reported correctly.

Serious accident on a country road

Mike was driving on a familiar country road when he noticed a truck hauling a trailer coming down a side street. It was quickly approaching the intersection and did not appear to be slowing for the stop sign. Mike was too close to stop himself and accelerated, hoping to clear the intersection before the other vehicle.

“I stepped on the gas, and (the other driver) hit right behind the driver’s seat,” Mike remembers.

His car rolled four or five times before flipping end over end. Fortunately, both Mike and Mary were wearing their seatbelts.

“My window was blown out [and] glass was everywhere,” Mike says. 

He was able to get out of the vehicle quickly, but his wife was unconscious. Dirt and debris had been pushed against her side of the door, making it impossible for Mike to open.

First responders arrived, rescued Mary and sent the couple to the hospital in the same ambulance.

“I busted my sternum and cracked 4 to 5 ribs and broke my wrist,” Mike says. His wife sustained serious injuries to her knee and shoulder.

The settlement process and outcome

The other driver was clearly at fault for running a stop sign, and she was ticketed for the accident. While Mike isn’t sure how lawyers learned of the incident, it didn’t take long for them to contact him about a legal case against the other party.

“Within a day after the accident, I had in the mail a huge packet from a law firm about filing a lawsuit,” Mike recalls.

Lawyers weren’t the only ones calling, either. The other driver’s car insurance company contacted Mike to discuss settling. Instead of pursuing a lawsuit, Mike decided to put the accident behind him and work with the company directly.

Ultimately, the company paid him a $19,000 settlement related to his injuries while his wife was awarded $70,000.

“The next day it was in my hands via FedEx,” Mike says.

In a later conversation with an attorney friend, Mike was told that his settlement was probably fair, but his wife could have gotten more by taking legal action. Doing so, though, would have dragged out the process and resulted in a cut going to the attorney.

In the end, Mike says he is satisfied with the settlement amount and happy not to deal with the situation longer than necessary.

As for the medical expenses related to his and his wife’s injuries, Mike doesn’t know how much those were. “I never saw a bill,” he says. Those costs were paid directly by insurance.

How Mike’s insurance covered his totaled car

While the other driver’s liability insurance paid for Mike and Mary’s settlements – and presumably their medical bills – Mike’s insurer paid the value of his totaled car. Since Michigan is a no-fault state, each driver’s insurance company pays for damage to their vehicle, regardless of who is at fault for an accident.

Mike still owed money on his 3-year-old vehicle, which had full insurance coverage, including collision protection. The company paid him for the car’s worth, and Mike used that to pay off the existing loan. Then, he had enough left over for a “healthy down payment” on a new vehicle.

“It was a lot of communicating back and forth,” Mike says of the claims process with his insurer. The car was totaled to the point where the odometer couldn’t be read, and Mike isn’t even sure where the car was taken after the accident.

Once the vehicle’s value was agreed upon, Mike received payment within a week.

Rising premiums after the accident

However, the end of the claims process wasn’t the end of Mike’s insurance saga.

“Within a year, my insurance (premiums) went up a little bit,” he says. At the time, he thought it might have been because the replacement vehicle was newer. “The next year, my insurance went up quite a bit, and the following year, it about doubled.”

At this point, Mike faced a $3,200 annual bill for his auto insurance, compared to about $1,700 before the accident. His insurance agent said the best way to save would be to bundle his home and auto into one policy.

Still, it didn’t make sense to Mike that his premiums would increase so much. He tried to call the insurance company directly but was told that he would have to work through his agent. They could not provide him with any information.

Frustrated, Mike ended up talking to a different agent who had helped them with their health insurance. That agent did some checking and discovered that the accident was listed on Mike’s record as his fault.

The agent helped correct that error, and Mike then moved his home and auto to a policy the agent suggested. That brought his auto insurance back down to approximately $1,700 and reduced his home insurance coverage from $1,000 to $500.

“My advice would be to watch your premiums and what you’re paying,” Mike says when asked what he would tell others making an auto insurance claim. If he had questioned the increases earlier, he estimates he could have saved himself $2,400.

Some insurance claims are more complex than others, and Mike and Mary’s experience shows how the various components of auto insurance can pay for both physical damage and medical expenses after an accident. What’s more, it’s a cautionary tale about the importance of monitoring premium increases after filing a claim.

Key takeaways from Mike and Mary’s experience

Mike and Mary’s accident shows how quickly life can change — and how crucial insurance can be in the aftermath. Their medical bills were fully covered, they received fair settlements, and Mike’s totaled vehicle was paid off quickly. However, their experience also highlights the importance of staying vigilant after a claim.

From monitoring premium increases to double-checking records for errors, Mike’s story is a reminder that the claims process doesn’t end when the check arrives. Being proactive, asking questions, and reviewing your policy can save you thousands of dollars and plenty of frustration in the long run.