Michigan Car Insurance Information
Michigan has the most comprehensive no-fault auto insurance system in the nation. If your vehicle is insured in Michigan, you and your family will be provided with unlimited medical and rehabilitation benefits, wage loss benefits and $20 per day for replacement services for up to three years if you are injured in an auto accident, regardless of fault.
Every registered vehicle must be insured. If you own a car and you drive it, or allow someone else to drive it without basic no-fault insurance, you can be sued and held personally liable. You may also be convicted of a misdemeanor and fined from $200 to $500, or put in jail for up to one year, or both. The court may also order your license suspended for 30 days or until you are able to provide such proof. In addition, if you are uninsured you may be held liable for all damages that result from an accident while uninsured, including your own.
There are three basic parts to a no-fault policy that must be purchased and carried on every vehicle. They are:
Personal Injury Protection (PIP) - Personal injury protection (PIP) pays all necessary medical costs if you are hurt in an auto accident.
Property Protection (PPI) - Property protection (PPI) pays up to $1 million for damage your car does in Michigan to other people's property, such as buildings and fences.
Residual Bodily Injury and Property Damage Liability Insurance (BI/PD) - Residual bodily injury and property damage liability (BI/PD) pays your defense costs and any damages you are found liable for as the result of an auto accident, up to the limits of the policy. The minimum limits of coverage that everyone must purchase are $20,000 for a person who is hurt or killed in an accident, $40,000 for each accident if several people are hurt or killed, and up to $10,000 for property damage in another state. These minimum limits are often referred to as 20/40/10.
There are other coverage options that can be purchased and these involve insurance for the collision damage to your vehicle.Your basic no-fault policy does not pay to repair or replace your car if it is damaged. Therefore, if you want to have your vehicle covered if it is damaged or stolen you must purchase collision and comprehensive coverage.
Uninsured motorist coverage is another optional coverage that compensates you for pain and suffering and excess wage loss if you are injured in a hit and run accident or if an uninsured motorist strikes you. You can also purchase underinsurance coverage for that compensates you for your injuries if they are greater than the insurance policy limits of the driver that causes your injuries. These are both very important benefits.
An excellent resource for information on Michigan auto insurance is the Michigan Department of Labor and Growth which has detailed information on the Michigan No-Fault Laws and buying car insurance. The biggest car insurance companies in Michigan are State Farm, Allstate, AAA, Farmers, Nationwide, Progressive, Titan, MEEMIC, Auto Owners, and Citizens.