Understanding Michigan Car Insurance Laws
Michigan, like most states in the US, has legal requirements for drivers to have a minimum amount of car insurance. Failing to meet these requirements can result in penalties such as fees, license suspension, and even imprisonment. Michigan’s auto insurance laws are some of the strictest in the country. So, it is crucial to understand these laws to ensure that you meet the requirements and are legally permitted to drive within the state.
Michigan Car Insurance Laws
Michigan drivers must follow several car insurance laws. However, some of these laws are different from other states since Michigan is considered a no-fault state. Here are some of the essential laws on car insurance in Michigan:
Michigan law requires all drivers to carry at least a minimum amount of car insurance coverage as determined by state law.
Proof of Insurance
Michigan drivers must carry proof of insurance in their vehicles at all times, and electronic proof of insurance is acceptable.
Failure to show proof of insurance
If a driver cannot provide proof of insurance when asked by law enforcement, their license may be suspended.
Minimum Insurance Requirements
Drivers must carry at least a minimum of 50/100/10 liability insurance, Personal Injury Protection (PIP) and Property Protection Insurance (PPI). The default coverage in Michigan, however, is 250/500/10. These amounts offer more robust coverage than the minimum required but also cost more. Michigan has minimum requirements for bodily injury and property damage liability. These coverage options help protect the other car if you are in an accident, as well as property that you do not own.
The minimum coverage is:
- $10,000 in property damage liability per accident
- $50,000 in bodily injury liability per person
- $100,000 in bodily injury liability per accident
Personal Injury Protection (PIP)
Michigan drivers are required to carry PIP insurance. There are six options for PIP coverage that the policyholder can choose from, including a default option with no maximum limit. PIP pays for medical expenses and lost wages.
Property Protection Insurance (PPI)
Michigan drivers are also required to carry PPI insurance, which pays for property damage to other people’s property, including fences, parked cars, or homes. This coverage will pay up to $1 million for these damages.
Residual Bodily Injury and Property Damage Liability
The last type of insurance that is part of a no-fault policy is residual bodily injury and property damage liability. The minimum coverage levels for this are 20/40/10. This coverage helps pay for defense costs and damages if you are found to be liable for an accident in which someone was seriously hurt or killed.
Although Michigan drivers are only required to carry liability, PIP, and PPI coverage types, many drivers choose to purchase optional coverage. Buying optional coverages will increase your car insurance premium, but you will get more protection. Here are some of the most common add-on coverages available to drivers in Michigan:
- Collision insurance: pays to repair your vehicle’s damages after a covered accident. Collision insurance does not pay to repair another driver’s car if you cause an accident.
- Comprehensive insurance: pays to repair your vehicle’s damages after non-accident incidents like floods and falling objects, and also vehicle theft.
- Uninsured/underinsured motorist insurance: pays for injuries and vehicle damages if you get into an accident with a driver who does not have insurance or does not have enough insurance to cover the losses.
- Residual Bodily Injury Liability: offers protection to cover medical expenses that result from the accident if you are involved in an accident that causes serious injury to someone else.
The Costs of Car Insurance in Michigan
In Michigan, the average full coverage car insurance premium costs $3,336 per year. Minimum coverage in the state typically costs $1,190 per year. By comparison, The United States’ average premium is $2,542 per year for full coverage and $740 per year for minimum coverage. For a variety of reasons, including the state’s insurance laws, Michigan is one of the most expensive states for car insurance on average.
The best car insurance companies in Michigan
Many car insurance companies offer coverage in Michigan, including national and regional options. Some of the best car insurance companies in Michigan currently include Geico, USAA, Progressive, Auto-Owners, and Travelers Insurance. However, the best way to find the best car insurance for you is to request quotes across multiple companies for the same types and amounts of coverage and compare them.
Understanding Michigan car insurance laws is essential to ensure that you are meeting the requirements and are legally permitted to drive within the state without any penalties. It’s always a good idea to take your time to research and compare quotes among different providers when selecting your coverage, so you can be sure you’re getting the best coverage that meets your needs and budget.
Originally Post From https://finance.yahoo.com/news/michigan-car-insurance-laws-193028198.html
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