Auto Insurance in Michigan
Michigan's unique approach to auto insurance may be confusing for those who are unfamiliar with it. Therefore, it is important to understand the state's requirements and options available for drivers.
Michigan is known for having the most comprehensive no-fault auto insurance system in the country. This means that regardless of who is at fault in an accident, each party's insurance company is responsible for covering their own medical expenses, lost wages, and other damages, up to a certain limit. This system was put in place to ensure that accident victims receive prompt medical attention and compensation, without having to go through lengthy legal battles.
What’s Included in Your Car Insurance Policy?
The state of Michigan requires these things to be covered by your auto insurance:
- Bodily Injury Liability
- Property Damage Liability
- Uninsured/Underinsured Motorist Liability
- Personal Injury Protection—Medical & Loss of Work
- Property Protection Insurance
This is only the bare minimum of coverage. It doesn’t really help you repair your own car if you caused an accident. Instead, it only covers property damage and bodily injury of the other driver. This means any repairs for your car or physical injury to you will end up costing you money.
Michigan's auto insurance has a requirement for Personal Injury Protection (PIP) coverage. PIP coverage is mandatory in Michigan and covers medical expenses, lost wages, and other related expenses resulting from a car accident, regardless of fault. Michigan drivers are required to carry a minimum of $250,000 in PIP coverage. However, drivers can choose to purchase higher levels of coverage, depending on their needs and budget.
Unique Aspects of Auto Insurance in Michigan
Michigan's auto insurance system is also unique in that there are unlimited medical benefits available to accident victims. This means that if a driver is involved in an accident and requires ongoing medical treatment, their insurance company is responsible for covering those expenses, regardless of the cost. While this can provide peace of mind for those who are seriously injured, it also leads to higher insurance rates in Michigan than in other states.
Michigan drivers also have the option to choose between different levels of property damage liability coverage. This coverage pays for damage to other people's property, such as their car, if you are at fault in an accident. Michigan drivers can choose to carry the state minimum of $10,000 or purchase higher levels of coverage, depending on their needs.
Finally, Michigan is a no-fault state, which means that drivers cannot sue other drivers for non-economic damages such as pain and suffering, unless their injuries meet certain criteria. This can limit the amount of compensation that accident victims can receive, but it also helps to reduce the number of lawsuits and legal fees associated with car accidents.
Why Should You Work with Us?
Auto insurance in Michigan is different from the rest of the United States in several ways, including the mandatory Personal Injury Protection coverage, unlimited medical benefits, and no-fault system. It is important for Michigan drivers to understand their options and requirements when it comes to auto insurance, and Insurance Advisors can ensure they are adequately protected in the event of an accident.
At Insurance Advisors, Inc, we believe there’s no such thing as a one-size-fits-all insurance policy. We take time to create a customized car insurance policy that keeps you and your family safe. Call us today to discuss your insurance needs, and we’ll make sure you’re covered.