Reading Auto Insurance in Michigan

With the no-fault system adopted in Reading auto insurance, drivers of Reading, Michigan now, more than ever, need to educate them of this implemented system. Learn how the system affects Reading car insurance premium rates to benefit as much in terms of savings.

A Brief Overview of No-Fault Reading Auto Insurance in Michigan

The state of Michigan has adopted a No-Fault Car Insurance System, which it applies in all cities, towns and communities within its territory. In fact, in all of North America, the state has applied this system with a wide coverage involving practically all risk factors. In the city of Reading, this same standard is imposed with every resident driver being required to get insurance for them to be able to have their cars registered with the local DMV.

The No-Fault insurance system was devised in the late 70's and adopted by Reading to make sure that all car owners, whether resident or not, will be sufficiently supported financially in case they get into an accident. This support is in the form of insurance proceeds which may compensate medical and hospitalization expenses, and even expected profits to a certain extent. The best thing is, this system requires an insurer to pay, and regardless of who is at fault.

The program adopted by Reading is actually composed of three factors: PIP or Personal Injury Protection, PPI or Property Protection Insurance, and Residual Bodily Injury and Property Damage Liability.

PIP requires an insurance company to pay for expenses you incurred for medical treatment or hospitalization. One feature of this factor is that you can recover as much as 85% of profits or income you expect to earn or have lost because of the accident.

PPI is designed to compensate other property owners for damage caused by you, the insured. However, before you go driving without regard for other people's property, you should know that in Reading, a certain limit is imposed. If the amount paid by the insurer is insufficient, an owner may sue you for the remaining amount. If the amount paid by an insurer is excessive, you are not entitled to keep the excess. Take note, however, that insurance laws in Reading allow coverage for an amount reaching up to $1,000,000.

Residual Bodily Injury and Property Damage Liability is simply that coverage or policy which saves your pocket from lawsuits that injured parties may file against you. This is a limited protection, however. For example, if you deliberately caused an accident no coverage or policy will answer for your liability.

A standard feature of this insurance program is that in applying for it, all parties almost instantly get paid the amount of their coverage. It would be a winning deal for some, yet there are still those at the losing end because in using this system; you give up some of the rights that state laws give you in suing other people. Thus, it would appear that this scheme is good only if you are at fault - not so if you are the victim.

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 Reading


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