If a person owns a vehicle in the Great Lakes State they are required by law to purchase automobile coverage in order to even have a vehicle registered. The type of polices that are available to residents, however, are somewhat unique. Michigan is a No-Fault state, which means that all motorists must have Personal Injury Protection (PIP), which pays for medical expenses, loss of wages, and various other injuries sustained in an accident regardless of who is at fault. Theoretically, this form of coverage means that fewer accidents will result in lawsuits because such suits can only be filed under a PIP policy if the amount of losses is more than policy provides.
Included in the MI No-Fault requirements is mandatory Personal Protection Insurance (PPI) which is in place to pay for property damage done to others up to a limit of $1 million dollars. It is important to note, however, that another person’s automobile only counts as personal property if it is legally parked. Furthermore, Michigan’s No-Fault laws also require that drivers obtain Residual Liability Insurance—Bodily Injury and Property Damage (BI/PD) which amounts to a minimum of $20,000 for a person who is hurt or killed in an accident, $40,000 for multiple people in a single accident, and $10,000 for property damage in the event that the accident occurred out of state. As previously stated, the minimum auto insurance in Michigan does not cover damages done to a person’s automobile if it is not parked, meaning that in order to obtain this protection additional coverage will have to be purchased.
Although the required amount of MI coverage is already some of the most extensive in the nation, there are still portions which can be increased in order to add greater levels of protection. The BI/PD minimum requirements could potentially be exceeded in the event of a severe accident, so many vehicle owners choose to increase these amounts to avoid potential lawsuits or costly charges. This can often be done quickly and at the expense of only a few extra premium dollars a year. Some motorists also choose to add Collision Insurance as well in order to safeguard against costs related to repairing one’s own vehicle after an accident. Typically this form of additional coverage comes with a deductible which determines how much the insured agrees to pay out of pocket, and also how high one’s rates will be. Generally speaking, the higher ones deductible is the lower the rates will be.
If the amount of protection which is already offered by the state is not enough, or if a motorist simply wishes to increase the the amount of coverage on a vehicle, then a person may wish to obtain Comprehensive insurance. This policy addition is in place to pay for repair costs pertaining to damages that have not been caused by a automotive accident. Included in this is fire damage, vandalism, damage from falling objects, or even collisions with an animal. For motorists who frequently commute through areas where such hazards are prominent, including comprehensive coverage may be beneficial. In order to aid residents in understanding the complexities of coverage in Michigan, the state publishes a Buyers Guide to Auto Insurance which details the many requirements and options which are available to the public. Remaining informed about state policies is an excellent way to stay protected and prepared for any possible automobile related incidents in the future.
Source: http://www.onlineautoinsurance.com/michigan/
