Michiganders encouraged to review insurance policies as 2022 comes to an end

(CBS DETROIT) - The Michigan Department of Insurance and Financial Services is urging Michiganders to review insurance policies and financial information as the year comes to an end. 

"The end of the year is an important time to review your auto and homeowners insurance policies, as well as important financial information such as statements from your financial institution and credit card companies," said DIFS Director Anita Fox. "Reviewing and understanding your insurance policies and financial documents can give you the peace of mind knowing that you are prepared for any unforeseen mishaps during the holidays and throughout the new year."  

Reviewing financial information at the end of the year is a good idea because it helps people plan for the next year, including having an emergency fund to pay insurance deductibles in case unforeseen circumstances damage a person's home, auto or other possessions. 

Here are some common mishaps that happen around the holidays and information on how to protect yourself if:

Auto Insurance 

• What if icy road conditions result in an auto accident?

Michigan is a no-fault state, so each person will seek medical coverage under their own policy. Coverage for a damaged vehicle is only possible if the optional collision coverage was purchased. Individuals should talk with their insurance agencies to understand what kind of coverage they have. 

• What if a vehicle is stolen while warming it up?

A person must have optional coverage to cover the costs in the event of a vehicle being stolen.

Homeowners Insurance

• What if presents are stolen from a home or a vehicle?

Officials say personal belongings stolen from a vehicle are not covered by auto insurance, but could be covered by home or renter's insurance. Certain items are covered under standard policies, but there are options to add coverage for additional items. People are encouraged to keep receipts to document to their insurance if something like this were to happen.

• What if someone falls on an icy driveway while making a delivery?

Homeowners insurance covers limited medical payments if someone is injured at the home and also has liability coverage if a person is sued. Individuals should check their policies to see the liability limits.

• What if a tree branch falls through the window?

Damage to a home and tree removal are usually covered by standard policies. A person should check their policy to determine what kind of coverage they have for a mishap like that.

Credit Card Theft

• What if someone steals credit card information and uses it to buy expensive electronics?

A person can be protected from a purchase like that through their credit card company if it is in the contract. There is no coverage if someone gives their card to a family member, and they decide to go out and start buying items with it.

Health Insurance

• What if a person needs to go to urgent care while traveling out of the state?

Before traveling, a person should check their insurance policy to verify in-network health care providers. If a provider is out-of-network, it may cost more out-of-pocket for the individual.

For more information from the Michigan Department of Insurance and Financial Services on preparing for mishaps and events like these ones, visit here.