Michigan Auto Insurance

November 5, 2015

Michigan auto insurance law requires every registered motor vehicle to be insured with no-fault coverage.   No-fault insurance coverage means all of the expenses are paid regardless of who caused the accident to other people’s property.  Michigan auto insurance includes three different sections in the no-fault coverage:

  • Personal Injury Protection (PIP)-  This pays all medical that is deemed necessary and reasonable including wages lost and replacement for up to three years if you are hurt in an auto accident.
  • Property Protection (PPI)- Michigan auto insurance law states this coverage will pay damages caused by your vehicle to another person’s property such as buildings or fences.
  • Residual Bodily Injury and Property Damage Liability (BI/PD)- If you are found liable in an auto accident in which someone was gravely injured or killed, this insurance pays up to the limit including legal services.   The minimum required is $20,000 per person injured or killed in the accident, $40,000 for each accident if more than one person are injured or killed and up to $10,000 for damaged done by your auto to personal property in another state.

As with all insurance you are able to buy more coverage as needed for each circumstance.   Lenders will have other requirements for Michigan auto insurance beyond the basic coverage.  A lender may require full coverage to protect the asset until it is paid off.

Comprehensive and/or collision coverage is above and beyond that of no-fault.   No-fault insurance does not cover damage to your car.  In order to have your car repaired in from an accident, you will need collision.  This type of coverage comes with different amounts and deductibles.   Comprehensive covers theft, collisions with animals, fire, flood, vandalism and falling objects such as a tree limb.

Uninsured or underinsured motorist insurance is also available in Michigan.  Uninsured covers you should you be struck by an uninsured motorist paying for pain and suffering and wages lost.   Underinsured insurance pays the difference between what the insurance of the driver will pay, the limits of the policy and what the courts award.

Michigan auto insurance laws are designed to protect all drivers with the no-fault minimum coverage.  While this insurance covers damage to another person’s car it does not cover damage to your car, therefore collision or comprehensive coverage is suggested if you want to protect your investment.  Lenders will require this type of coverage.  Michigan also offers the option of uninsured and underinsured motorist.

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