Michigan winters are often brutal. Michigan locals are busy and hard working, the last thing they need is to worry about the rising costs of accidents on the road. Every resident should be equipped with proper Michigan auto insurance. Michigan plants have been manufacturing cars and car parts for close to a century, and Michigan auto insurance has been around just as long to insure them.
Michigan Auto Insurance Requirements
Michigan is one of the no fault car accident states. The no fault policy was enacted to lower the amount of lawsuits filed in Michigan courts every year. Because no fault insurance covers all drivers regardless of whether or not they were deemed to be at fault for an accident, Michigan auto insurance must include Personal Injury Protection. Personal Injury Protection is expensive but the minimum coverage can be obtained provided the driver has a very good health insurance plan. Personal Injury Protection covers medical expenses, loss of salary due to time off and death benefits.
No fault insurance does have its exceptions, especially if the dollar amount is higher than Michigan is willing to pay for the cost of major accidents, in which case the driver at fault would have to cover the costs. It is therefore obligatory for Michigan drivers to carry the state minimum requirements for Bodily Injury Liability and Property Damage Liability. The state minimum requirements are set to 20/40/10. The breakdown goes as follows:
- Bodily Injury Liability – The insurance company of the at fault party will payout up to $20,000 for medical expenses for a single person injured in the other car.
- A total amount of $40,000 will be paid out to multiple injured parties in the other vehicle.
- Property Damage Liability – The at fault driver’s insurance company will pay out up to $10,000 for damages to private and public property such as road signs and the other driver’s vehicle.
These minimums are low and costs of medical expenses and damages may well exceed these amounts, therefore, the State strongly urges that Michigan auto insurance protection include a much higher level of coverage.
Michigan state also recommends that its drivers carry Comprehensive and Collision protection in case their own car is damaged during an accident, or in case their vehicle is damaged because of natural causes such as snowstorms or contact with the State’s wildlife. These minimums are often not sufficient to pay for car accidents in the State of Michigan, therefore it is recommended that the residents receive more Michigan auto insurance coverage than required by law.
It is also recommended that motorists insure themselves against hit and run drivers, or from the possibility that the driver at fault has little or no insurance protection. Uninsured/underinsured Motorist Protection plans safeguards against these circumstances.
