Michigan Auto Insurance Basics


There are a large number of motor vehicles on the roads today. Consequently, the number of accidents is increasing as well. If a person has been involved in an accident, the costs of covering damages caused during the accident will be very high. Hence, auto insurance has been made mandatory to ensure that each car in an accident will have an insurance company to pay for the damages.

The person paying for the damages can either be the owner of the car or the person deemed responsible for the accident. The system of rules followed by the state will decide who pays for the damages. In a tort system, the person responsible for the accident will pay for the damages. In a no fault system, the damages will be paid for by the insurance company irrespective of the fault.

The state of Michigan follows the no fault system of rules. However, no state will completely follow absolute no fault system. There are thirteen states that follow no fault system in the United States of America and none of these states follow pure no fault systems. There is always a possibility of suing the other person who is responsible for damages if the cost of the damages crosses a certain amount. These are known as no fault modifications and very from state to state.

The state of Michigan has also made auto insurance mandatory. There are a few insurance coverage policies that a driver on the road must have. These include twenty thousand dollars for bodily injury per person and forty thousand dollars in total for bodily injury. It is also compulsory to get auto insurance for ten thousand dollars to cover any property damage. Property protection insurance is mandatory for the amount of a million dollars. It is also mandatory to get personal injury protection to cover medical costs and any lost wages.

Bodily injury liability is to ensure that the person who has been involved in the accident will have his medical costs due to damages caused during the accident are covered. Property damage will help pay for any damage caused due to the accident to any cars, buildings, fences or lamp posts. Property protection insurance will help pay for your car. This is the largest sum and hence your car will be protected on the roads of Michigan. Personal injury protection is an insurance coverage policy that will help you pay for any medical costs you incur or cover lost wages.

Another important kind of insurance coverage policy would be uninsured or underinsured motorist’s coverage. Michigan has not made this policy mandatory. However, it is a good idea to buy this policy. This would protect the driver or motorist in case he is involved in an accident with an uninsured or under insured driver. An uninsured driver has no insurance as per the law’s requirements. An underinsured driver has insurance but not enough to cover damages. This is a very tricky situation and hence, buying this insurance coverage policy will help you a lot. Physical damage policy is also very popular. This will help pay for damages to your car