My Girlfriend And I Live Together. What Should I Do?
With the new auto laws coming into effect in Michigan, there are so many different scenarios and situations to consider. This week, we will focus on unmarried couples that live together. Let’s say that you and your girlfriend live together and you share a car. Even though you might both drive it from time to time, you’re the one who technically owned it and you’re the only one listed on the insurance. On your insurance policy, you have full coverage and full medical benefits in the event of an accident- meaning that if you get into an accident your insurance company will pay 100% of the accident related medical bills. Does this mean that you are both covered by your insurance in the event of an accident?
Unfortunately, no it does not mean that you and your girlfriend will be covered by your current auto policy. As the named insured on the policy, your medical bills will be covered since you have unlimited coverage. If you had a policy where the insurance agency will pay up to $500,000 or $250,000, your bills would be covered up to that number and you would be responsible for the remaining balance. Since your girlfriend is not a named insured on the policy or a resident relative (such as a child), she would not be covered by your auto insurance and her bills would go to the Assigned Claims Plan** with coverage up to $250,000 for her medical. Any bills more than $250,000 would be the responsibility of your girlfriend to cover. Certain companies may allow a live-in partner to be a named insured on your policy, so it is extremely important to disclose your living situation with your insurance agency so they may get coverage for everyone in the household. Keep in mind that if you were to split up, the first named insured (that would be you) has the legal right to remove any person(s) from their policy at any time.
We hope you find this information helpful. We will be posting new scenarios until July when the new Michigan Auto Insurance laws come into play. We are happy to answer any additional questions you may have! Visit our website at farmingtoninsagency.com or call us a (248)-474-3511. We are your local insurance experts- let us show you the FIA difference.
**The Michigan Assigned Claims Plan was established by the state of Michigan in 1973 to provide access to Michigan No Fault Benefits for people in a car or truck accident when no applicable car insurance is available. You must apply for MACP to be eligible for the benefits. Go to https://www.michacp.org/file-claim.aspx for more information.