Michigan Auto Insurance Coverage


The state of Michigan has written a set of rules and regulations to ensure all of its citizens live in safety and harmony. Each of these rules must be followed. Any violations will be dealt with harshly and the violator will be penalised. With the number of accident increasing with the number of vehicles on the road, the state of Michigan has made auto insurance mandatory. However, obtaining insurance in the state of Michigan is slightly tricky.

The state of Michigan follows no fault system of rules. According to the no fault system, in case of an accident, every person will be paid by his insurance company for the damages caused irrespective of whose fault the accident was. This system, understandably, cannot be followed perfectly. People will not want to pay for damages when the responsibility of the accident is somebody else’s. There are thirteen states that adopt no fault rules. All of these states adopt some modification of the no fault system. There are modifications that allow a person to sue the person responsible for the accident for the damages caused. To sue, the costs incurred must cross a certain limit. These limits vary from state to state.

The state of Michigan has made auto insurance mandatory. The minimum bodily injury liability is fixed at twenty thousand dollars per person in an accident and forty thousand dollars in total for bodily injury. It is also compulsory to have property damage coverage for the amount of ten thousand dollars. It is also mandatory to have property protection insurance for a million dollars. A motorist must also have personal injury protection to cover his medical costs and any lost wages.

Bodily injury is mainly used to cover the costs of any medical treatments people involved in the accident might need. Property damage covers all the costs of replacement and repair of any property damaged during the accident including buildings, cars, fences and lamp posts as well. Property protection insurance will pay for any damage your car might have caused to stationary property such as parked cars or buildings. This is for a large amount of one million dollars. Personal Injury protection coverage will assure you get medical costs coverage and lost wages of you will lose any.

Other forms of coverage in the state of Michigan include Uninsured and Underinsured motorist’s coverage. Uninsured motorist’s coverage pays for damages when a person is involved in an accident with a driver who has not been insured as required by the law. Underinsured motorist’s coverage is also similar. However, this coverage pays for damages caused if the motorist is insured but not for the adequate amounts to pay for damages. These are very important coverage policies and are used often. The reader is advised to go in for these policies as well.

The next kind of insurance would be physical damage insurance policies. There are tow kinds of physical damage policies. These are collision and comprehensive damage policies. Collision pays for repair and replacement of your car in case of an accident or collision. Comprehensive pays for any damage other than collisions.