Do I need auto insurance?
The State of Michigan required that all drivers have no-fault insurance. 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.
What auto insurance coverage must I have?
There are three basic parts to a no-fault policy that must be purchased and carried on every vehicle.
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. You can also purchase additional limits of BI/PD coverage, which will be explained in the next section. You can learn more about each of these mandatory no-fault coverages in the publication Brief Explanation of Michigan No-Fault Insurance. You can also obtain additional information by reviewing A Consumers Guide to No-Fault Automobile Insurance in Michigan.
How much will I pay?
There are many factors that go into determining how much auto insurance costs including the following:
Can I lower my rate?
There are ways that you can lower your auto insurance premium:
Personal Injury Protection (PIP): pays all necessary medical costs if you are hurt in an auto accident.
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): 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.
Collision Coverage: pays to repair or replace your vehicle if it is damaged in an accident and is available with our without a deductible.
Comprehensive Coverage: pays if your car is stolen, collides with an animal or is accidentally damaged by falling objects, fire, flood, or vandalism. You can purchase both of these coverages with deductibles in an effort to reduce the cost of your insurance.