I’ve always been a sucker for cheap stuff, and not too long ago, I purchased cheap auto car insurance in Michigan. Now that I need to make a claim for an accident, they’re giving me the runaround. When the accident happened, I was only the passenger because a friend of mine was driving my car. All the same, they have to cover my losses, right?

Jonathan

Detroit, MI

I’m right there with you, Jonathan. That’s the thing about cheap companies with bad service. They know everybody is scrimping on food, rent, clothing and everything else, so they offer rock bottom prices, but they are hardly worth your money.

Before you purchased this auto insurance policy, I hope you checked out the auto insurance company first. Are they really licensed? You can visit the state website or the Michigan Department of Insurance to take a look at the list of licensed car insurance agents. When dealing with them in person, they must carry their license with them, too. In their offices, the license to sell auto insurance must be posted on walls.

As for what you are entitled to receive, there seems to be no doubt that you should be reimbursed for your medical expenses and other losses. In Michigan, PIP or Personal Injury Protection is mandatory. For as long as the cost of your hospitalization, and your doctor’s fees are within the reasonable amount determined by the auto insurance company, they have no choice but to reimburse you even though you weren’t the one driving. As a passenger, your PIP still protects you from unexpected expenses caused by some road trouble. So, think twice before jumping to cheap auto car insurance in the future.