Almost every state in the United States of America has made auto insurance mandatory. Mandatory auto insurance ensures that in case of an accident, the driver of the car is paid for the damages caused to his car. There are two ways to decide who will pay for the damages. The two ways are known as the tort system or the no fault system.
Michigan is a no fault state. According the no fault system, in case of an accident, a person’s auto insurance company will pay for his damages irrespective of who might have caused the accident. Michigan does not follow pure no fault system. People do not want to pay when the fault is another person’s. Drivers are allowed to sue the person responsible for the accident in case the damages cross a pre decided limit.
Auto insurance has been made mandatory in Michigan. The state has fixed the minimum amount of coverage a driver should have when he is driving on the road. The minimum liability for bodily injury in the state of Michigan is twenty thousand dollars per person per accident and forty thousand dollars in total per accident. Ten thousand dollars of property damage coverage is also mandatory.
Property protection insurance for an amount of a million dollars is also needed along with personal injury protection to pay for the drivers lost wages and medical bills. Bodily injury mostly pays for the victim’s medical bill and other damages caused during the accident. Property damage will cover the costs of any damage caused to other people’s properties including cars, buildings and fences. Personal injury protection helps pay for any medical expenses one might incur due to the accident. It will also pay for lost wages, if any. Property protection insurance will pay for any damage the driver’s car might have caused to cars parked perfectly, buildings and other stationary objects.
This article focuses on some of the discounts a driver can avail to help him reduce the cost of insurance.
Buy insurances together. Buy home and auto or life and auto insurance together. This will help you get a discount. Most homes in America will have more than vehicle. It is a good idea to all the car insurances done by the same company. This is known as the multi vehicle discount. A discount is offered on a good student as well. A student with good grades can help a driver get discount. This acts as a great incentive and ensures the student keep his grades high.
Good driving records will ensure a drier gets a discount. If the driver has had a good driving record for the past three to five years, he is a very safe driver and will get a discount. Attending the driver education classes conducted by the DMV will cost you a very small amount. However, the money you save on your auto insurance due to the classes is a large amount. IF you are a driver above fifty years of age and below sixty five years of age, you are bound to get a discount.