Easy Guide To Car Insurance In Michigan

You're driving through your home state of Michigan when the unthinkable happens: You have a rear-end collision with the car in front of you who you're convinced was driving too slow. It's just a scratch, so ordinarily you wouldn't be concerned. Except you remember that you let your auto insurance lapse. Uh-oh. That could be bad, because as with every other state, car insurance in Michigan is required. So let's take a quick look at this essential issue.

In Michigan, car insurance operates on a "no fault" basis. Simply put, that means the insurance company must cover all injury claims related to all car crashes, no matter who as at fault. The no fault insurance program covers you up to a certain limit. Understand, however, that no-fault details are different between each state. So if you just moved to Michigan, don't think you automatically know how car insurance in Michigan operates.

Be sure to check with the Michigan Insurance Regulator to find out for what you would be responsible in the event of an accident. Many insurance companies can likewise provide this information, either via their website or through a quick telephone call.

Also, in Michigan you could be required to pay a minimum of $20, 000 bodily injury liability for each person who is injured (with $40, 000 per collision the maximum). You have to have a minimum of $10, 000 property damage liability coverage. This 20/40/10 policy is what is known in Michigan as basic coverage.

And finally, in Michigan, you must have a minimum of $10, 000 personal injury protection to cover medical costs for anyone in your car required because of injuries sustained in an accident. And although not required, there is also the option for uninsured / underinsured motorist coverage, which protects you in case you're in an accident with somebody who does not have insurance.

One other thing: Minimum coverage is just that: the bare minimum that's required. This means it's what will keep you from getting in trouble with the law in the event of an accident. However, many people should seriously consider going way above minimum coverage.

This is especially true if you know that your car is still worth a significant amount of money, or you simply know that your life would come to a screeching halt if your car is totaled. So the best advice, whether in Michigan or anywhere else, is get the insurance that you need to protect yourself.