Michigan auto insurance is protected by No-Fault and is required by law. In order to register your vehicle there are certain coverage’s that you must have in understanding auto insurance in Michigan, you need to know that the basic no-fault Michigan auto insurance policy has three required parts.
Bodily Injury and Property Damage (BI/PD)
The first section is bodily injury and property damage; this coverage will protect you and your assets if you are sued as the result of an auto insurance accident. In Michigan, you can be sued if you injure someone with your vehicle causing a substantial injury to the other driver, passenger or pedestrian. This coverage also covers the cost of defending you in any suit for damages and also pays for the cost of the defense in addition to your liability limit.
The State of Michigan auto insurance law requires you to carry these minimum limits:
• $20,000 per person who is hurt or killed in an accident
• $40,000 for each accident if several people are hurt or killed
• $10,000 for property damage in another state
These limits are usually shown as 20/40/10. If there is a lawsuit against you the court could award a judgment in excess of these limits this will usually depend on the severity of the accident and the assets that you have available. It is recommended that you carry higher liability limits that are required. You should discuss this with a local Michigan insurance agent to discuss what limits might be right for you, usually, these limits can go as high as 1 million/1million/1 million.
Property Protection Insurance (PPI)
No-Fault will pay up to $1 million for damages that you cause in Michigan to another party’s property, such as a parked auto, building, fence. If the damage is caused out of state the limits will be determined by what you selected from the property damage limit that you selected.
Personal Injury Protection (PIP)
This part of no-fault auto insurance policy pays all necessary medical costs if you are hurt in an auto insurance accident. Michigan is the only state in the country that offers unlimited medical. Michigan is able to do that by adding an assessment (MCCA) to all Michigan auto insurance policies (as of 2017 this fee was $170.00).
Lost wages are also paid if you are unable to work due to accident-related injuries. PIP will pay up to 85% of your gross income for up to 3 years. This limit on this coverage varies according to your salary and is capped at maximum payout limit as set by the state as of 2017 this limit was ($5541) this figure is updated every October.
Survivors’ payments this is an amount that can be paid to the survivor based on the assessment of the claim if the insured dies as a result of the auto insurance accident.
Funeral expenses help pay for the related funeral expense if the covered individual dies as a result of the accident. This limit is capped at $1750 per person.
Replacement services will pay up to $20 per day for 3 years if you need help performing household duties or other tasks due to accident-related injuries.
These coverages are the minimum required by law for all Michigan registered autos. If you want coverage for damage to your auto you will have to purchase the optional coverage’s listed below.
Michigan Auto Insurance Physical Damage Coverage
Collision pays to repair or replace your vehicle if it is damaged in an accident. There are 3 types of auto insurance collision coverage available in Michigan. This coverage will pay for the damages as long as they don’t exceed your car’s actual cash value. (Actual cash value is the car’s original purchase price minus the amount it has depreciated)
Standard collision pays for damages to your auto regardless of fault; you will be responsible for paying a deductible if you are a fault.
Broad form collision pays for damages to your auto regardless of fault; you will only have to pay the deductible if you are found to be more than 50% at fault
Limited Collision pays only if you are less than 50% at fault. If you are more than 50% at fault nothing is paid.
This coverage provides protection for damage not resulting from a collision. Examples are theft, glass damage, fire, flood, vandalism, explosion, hail, and contact with birds or animals.
Comprehensive and collision coverage is usually required by the finance company if your vehicle is leased or financed.
Optional Michigan auto insurance liability coverages:
Uninsured Motorist Bodily Injury (UM)
Uninsured motorist coverage is an optional liability coverage that compensates you for excess wage loss and pain and suffering. This coverage applies if an uninsured driver hits you or a member of your family. Usually, the limits are the same as your bodily injury limits but can be at the state minimum.
Limited Property Damage (LPD)
Under Michigan law, if you are 50% or more at fault in an auto accident, you can be sued for up to $1000.00 of damage not covered by the other person’s collision coverage. This coverage is also called mini-tort. If you purchase this coverage, your policy will pay up to the $1000 to the other party’s collision coverage. If you are hit and need to know how to get your deductible back go to How to file a mini-tort claim.
Optional Michigan auto insurance coverage’s
Rental Car Coverage
This is an optional coverage that will pay a per day amount towards a rental car for a filed a collision or comprehensive claim while your vehicle is being repaired. This coverage is a set amount and once that limit is up you are responsible for the additional cost.
Emergency Road Service
This is an optional coverage that pays towards the cost to have your vehicle towed or other emergency services.
Click the link to be connected to a Michigan auto insurance agent to get a quote.