Erie Auto Insurance in Michigan

Knowing your options in Erie auto insurance is a must if you want to get adequate protection. By keeping tabs with the basic requirements in Erie car insurance, you will surely be able to make a more educated decision regarding the policy you plan to purchase.

Know Your Options with Erie Auto Insurance in Michigan

Every car owner in Erie, Michigan and all over the state is required by law to have a no-fault insurance as a prerequisite to have the vehicle registered with the DMV. The basic policy accredited by this state has three parts: Personal Injury Protection (PIP), Property Protection Insurance, and Residual Liability Insurance - Bodily Injury & Property Damage (BI-PD).

Personal injury protection will pay for all medical costs and a certain maximum amount of compensation for lost income up to three years. In 2007, Michigan laws allowed this amount to be $4,589 per month. This means that you or your family (in the event that you are killed in the accident) would have received this amount or less, depending on lost earnings and fringe benefits.

For the PPI coverage, your insurer will pay off the damages caused by you and your car to others' property like fences and buildings, as well as other people's car that was properly parked. This amount is up to $1,000,000.

Liability coverage in Michigan is known as 20/40/10 which means that if you are sued, the limits are up to $20,000 if one person is hurt or killed in an accident, $40,000 if several people got hurt or killed in one incident, and $10,000 for property damage in another state. The following are the circumstances by which you could be sued:

  • Someone is killed or seriously injured in an accident within the state that you caused;
  • You got into an accident with a non-resident driving a vehicle not registered in Michigan;
  • You got into an accident outside of the state of Michigan; or
  • You are 50% or more at fault in accident and your due is up to $500 in damages to someone else's car.

Sometimes, the court will be in favor of the other party and will award more than the limits. Then you will have to shoulder the difference not covered by your insurer. This is the reason some opt to buy more coverage, for extra protection.

Not every person in Erie is eligible to own auto insurance. Basically, you have to have a valid Michigan driver's license and a car registered with the local DMV. There are times when insurance companies decline an application even if these two factors are present. Here are some reasons for denial: your license is revoked or suspended, you have been found guilty of insurance fraud in the last five years, your car insurance policy was suspended in the last two years because of non-payment of premium, or your driving record is not so desirable.

If you are not one of the examples cited, then go ahead and check quotes so you can finalize your insurance policy.

Local auto insurance quotes in your area can help you compare car insurance quotes for auto insurance coverage in all of the following ZIP codes in Erie


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