Michigan Car Insurance
Michigan has some of the comprehensive auto insurance laws in the country. Michigan is a no fault auto insurance state. Every registered vehicle in Michigan must show proof of insurance. By law, Michigan drivers are required to purchase three basic coverage types on their auto insurance policies: Personal Injury Protection ("PIP"), Property Protection ("PPI"), and bodily injury/property damage liability insurance.
Per policy terms, PIP coverage pays for medical bills, lost wages, replacement services, funeral expenses, and survivors' benefits for a driver and their passengers following an accident. In Michigan, there is unlimited medical and rehabilitation benefits, wage loss benefits up to 85% of income for up to three years, 20 per day for replacement services for up to three years.
PPI coverage pays up to one million dollars for damages caused by an insured's vehicle. An example would be damage an insured driver caused to a building or fence in an accident. This coverage also pays for damage caused by an insured driver to parked cars struck in a collision.
Michigan law requires drivers to carry minimum liability coverage of $20,000 for one person, $40,000 for all parties in an accident for bodily injury damages and $10,000 minimum coverage for property damage liability. This amount of liability coverage may be more simply stated on an auto insurance policy as 20/40/10.
UIM Coverage
Michigan drivers are not required to purchase Uninsured/Underinsured Motorist ("UIM") coverage but it is an important type of insurance coverage. UIM coverage applies in the event the driver at fault for the accident is insured or does not have enough insurance to pay for the damages sustained by the other driver(s) or passengers in an accident. For example, if a driver in an accident had 20/40 UIM coverage, they would be able make a UIM claim with their auto insurance company and be able to receive up to $20,000 for their own bodily injury damages. Per the policy limits, their insurance company would only pay up to $40,000 for all UIM bodily injury claims resulting from the accident.
Collision and Comprehensive Coverage
Collision and comprehensive are other important available insurance coverage types in Michigan. These coverage types are not required by law but can be very important in the event of an accident. Also, many financial institutions require vehicle owners to purchase collision and comprehensive coverage as a condition of their loans.
Collision pays for vehicle repairs or vehicle replacement value following a collision regardless of fault. Comprehensive coverage pays for all vehicle repair damage or replacement value for incidents other than a collision such as a tree falling on the car or the car being stolen. There are minimum deductible limits for these collision and comprehensive such as $500, but drivers can also raise their deductible amounts to lower their premiums.
Keep Your Car Insurance Current
It is very important that Michigan drivers do not allow their auto insurance policies to lapse. Each day, thousands of Michigan drivers are involved in car accidents. Uninsured drivers in Michigan pay fines and may be forced to comply with state financial responsibility laws, which require them to purchase expensive SR–22 Insurance. They can also be held personally responsible for all damages caused in an accident. Driving without car insurance in Michigan is fiscally irresponsible and can lead to financial ruin.
Get A Free Quote From BestCarInsuranceCompanies.net
Drivers in Michigan have more than a dozen auto insurance companies to choose from. National insurers such as Progressive, Geico, Nationwide and American Family all sell auto insurance in Michigan. Whether you live in Detroit, Grand Rapids, Lansing, or Ann Arbor, use BestCarInsuranceCompanies.net to get low cost Michigan car insurance.
Michigan drivers pay more on average than in nearly every other state in the country for auto insurance. It makes sense to shop for the insurance that provides the best possible coverage and service at the lowest price. Just enter your zip code above to get started on a free quote and you could be on your way to saving hundreds of dollars a year on your auto insurance.