Michigan is one of only twelve states in the nation that is a no-fault state. This means that when choosing auto insurance coverage, there are three basic parts that are required that all MI motorists should be aware of. The first of these is Property Protection Insurance (PPI). PPI covers up to $1 million in damages to other people’s property. This means that if a driver’s vehicle strikes another person’s fence or building, then considerable amount of the repair costs may be covered by this mandatory precaution. However, this coverage does not include any damages done to any vehicles or their contents, which includes trailers or the objects they might be carrying.
The second portion of Michigan no fault auto insurance is Personal Injury Protection (PIP), which would pay for any reasonable medical expenses that might come from an automobile accident. It is also possible that a policy holder’s PIP will also pay for up to three years of wages that the driver would have earned if they had not been injured, up to a certain amount. Finally, MI requires Residual Bodily Injury and Property Damage Liability Coverage (or BI/PD). This ensures that if a vehicle owner is in an automobile accident that their defense costs, as well as the costs of any damages that they are found liable for as a result of the accident are covered, up the an amount which was set at the time the policy was added. BI/PD coverage, however, does have minimum limits in it’s coverage. Every holder must purchase $20,000 to cover any person who is hurt or killed in an accident, $40,000 per accident in the event that multiple people are injured or killed, and up to at least $10,000 for property damage that takes place in another state.
Before driving the streets of the Wolverine State, it is important for drivers and future coverage owners to seek out all possible information on purchasing auto insurance in order to have full understanding of their future automobile policy. The protection possibilities in MI do not stop at the three basic parts of a no-fault policy; there is an array of additives that can be included into one’s vehicle coverage. It is first important to note that a basic no-fault policy does not pay to repair or replace a policyholder’s car if it is damaged. In order to get the peace of mind that comes with coverage, owners would have to purchase collision and comprehensive coverage. Collision would take care of costs to a driver’s automobile made from a collision with another car, while comprehensive coverage handles costs involved in damage to a vehicle owner’s car that may be caused by anything from falling objects, fire, or vandalism, to animal confrontations or theft.
Even though Michigan insurance among the most comprehensive in the nation, there are still some that choose to forgo insurance altogether. For this reason, many providers offer Uninsured Motorist Coverage, which ensures that an insured driver will be compensated for possible pain and suffering, as well as any excess wages that were lost because of injuries received during a hit and run accident, or an accident caused by an uninsured motorist. It’s always important to remember that knowing what type of protection to purchase and finding cheap premiums for such policies could end up saving drivers both money and frustration if damage ever came to their automobile.
Source: http://www.onlineautoinsurance.com/michigan/
