Michigan residents should know what type of car insurance coverage they need to carry to comply with state law before purchasing a policy. There are different coverage types that are required in addition to the amount that needs to be purchased. Beyond those requirements are other alternatives that can be added to the policy according to the needs or desires of the policyholder. Finally, we’ll explain the easiest way to purchase MI insurance for a vehicle that can get the cheapest quotes.
MI State Auto Insurance Requirements
State law says that every driver in Michigan must carry the correct type of financial responsibility to legally operate a vehicle on public roads. The most common form of financial responsibility is purchasing an auto insurance policy. There are many, many companies throughout the state that offer a variety of policies at different prices for motorists to choose and purchase.
Like many other states, Michigan requires their drivers to carry bodily injury liability and property damage liability in a 20/40/10 minimum amount. This means that the insurer will pay up to $20,000 for the bodily injuries of the other driver and passengers per person and up to $40,000 for the bodily injuries combined. This coverage also will help cover court costs. The 10 in the 20/40/10 refers to the $10,000 that will be covered in property damage, and the insurer will pay for those repairs up to $10,000. These are only the minimal amounts required and it is recommended by experts for drivers to carry a 100/300/100 policy for bodily injury and property damage liabilities.
Michigan also requires drivers to carry two additional coverage types in their minimal insurance policy, personal protection insurance and personal injury protection. Personal protection insurance is in the amount of up to $1 million and pays for damages caused to other people’s property. It is similar to property damage but check with the individual provider to get the exact terms of coverage. Personal injury protection pays up to a certain amount for the medical bills and any lost wages for up to three years. It covers medical expenses of the policyholder, members of the policy and any passengers of the accident no matter who caused the accident. This coverage can be used in addition to the coverage of a healthcare policy. Personal injury protection is a great coverage for drivers who carpool regularly since passengers are covered under it.
Additional Coverage Options
There are other coverage types that can be added to the minimum state requirements to ensure full coverage on the vehicle. Comprehensive and collision are very popular types to add to a policy. Comprehensive insurance covers damage done to a vehicle that was caused by something other than a typical on the road vehicle accident. This can include weather related causes of damage such as strong winds or hail. Collision covers damage no matter who caused it. So, when in an accident that was the policyholder’s fault, their state required liabilities will go towards the other driver’s repairs and medical bills, and the collision coverage will go towards the policyholder’s vehicle for repairs.
Other options include protection for the policyholder from drivers who do not have auto insurance or who have a small amount of it and cannot pay for the full repair bill. Uninsured and underinsured motorist liabilities would be used in this situation, and it would be the policyholder’s insurer who pays for these damages incurred by the other driver who has insufficient insurance or no insurance at all. This coverage is actually required in other states.
A few other additions would be the towing coverage and the rental car coverage. Each of these are for the policyholder’s convenience. The towing coverage allows for a tow truck to haul the policyholder’s insured vehicle away from the scene of the accident to a body shop, and the rental car coverage forces the insurance company to pay for the rental car fees that occur when the policyholder’s vehicle is being repaired. Most often these are covered up to a certain amount and are not just a blanket amount covering however much the policyholder feels necessary. For example, some insurers only cover up to $25 a day or up to $50 a day with certain rental car coverage options. Find out which other options are offered by the insurer and their coverage terms to get the best coverage.
Find Michigan Car Insurance
Our method of getting quotes for Michigan auto insurance is the fastest and easiest way to get a number of quotes in a matter of minutes. Instead of taking time to contact each individual insurer and gather their data and prices over and over again, we ask one set of questions and then provide the list. Starting with the box asking for a local zip code, enter in the local residential zip code and watch for the next webpage to open. The next few questions are in regards to the driver, the vehicle to be insured, and the type of coverage the driver wants.
The information needed about the driver does not require the use of any really important personal information that could be used against them, such as a social security number or a driver’s license number. Instead, we only need the name, age, address, and past driving history of the driver. We can give an accurate quote as long as the information provided is honest and accurate. Please remember that although the personal numbers (social and license) are not needed, they will be taken if the driver decides to purchase a policy. This is done by the insurer, just like when a policy is purchased offline and traditionally on paper. The vehicle information needed will be the make, model and year of the vehicle, where it is kept, why it is driven and how often it is driven. Finally, the coverage and amount of that coverage wanted on the policy is needed. All of these things contribute to determining the final quote of the premium.
