Michigan Auto Insurance Quotes
If you wish to obtain information regarding auto insurance rates then you must also have a better understanding of the laws that prevail in the state of Michigan. In order to get a better understanding of the auto insurance coverage you should be able to differentiate between coverage that is mandatory and coverage that is optional. Very often, the minimum coverage that is prescribed by the state is inadequate and vehicle owners opt for additional coverage which is also optional. After you have a fair understanding of these various components in auto insurance you will be in a better position to apply for quotes from various insurance providers who are authorized to do business in the state of Michigan.
Michigan Liability Insurance Requirements
Under Michigan auto insurance laws, liability insurance coverage must be maintained on all vehicles registered in the state. In addition, personal injury protection coverage must also be purchased. For bodily injuries for one person in one accident, the minimum coverage required is $20,000. For all bodily injuries in one accident, the minimum coverage required is $40,000. Property damage liability insurance is also required in the minimum amount of $10,000. The required personal injury protection coverage will pay medical or funeral expenses for covered drivers and their passengers, as well as pedestrians injured in an accident.
Michigan's No-Fault Laws
Michigan is one of the twelve states that is considered to be a no-fault state. This means that an insurance company must pay an insured driver's accident expenses regardless of who was at fault in the accident. As a result, the liability insurance coverage that a motorist carries must be no-fault coverage.
According to the no-fault system, the driver purchases the auto insurance policy as required by the state laws that are mandatory. This insurance coverage will protect the policyholder and pay for some of the coverage with regard to medical costs and loss in wages up to a certain limit. However, the motorists will have to give up some of their rights to sue the opposite party and it works for both the parties involved in the accident.
Hence, in case you are involved in an accident, your insurance provider will pay for your damages up to the limits set in your policy regardless of who was at fault. These limits will have to meet the state's requirement of minimum coverage in case it is a no-fault state such as Michigan. The other drivers in turn will be covered by their insurance providers. The aim of creating and adopting such as system was to ensure that each and every motorist has access to immediate coverage to cover medical costs and loss of wages and thereby reduce the number of lawsuits that are filed following an accident. This in turn, helps in lowering the premiums and keeping the auto insurance rates really low.
Minimum no-fault requirements vary from one state to another. While some states allow lawsuits depending on the seriousness of the injuries there are the others who allow lawsuits to be filed if the cost of damages has reached a certain specified dollar amount. In other words, the injured party is allowed to sue for damages that exceed the specified limit.
The PIP or personal injury protection is a policy under this no-fault system. The minimum coverage limits on PIP vary from one state to another but the benefits normally cover the injury-related expenses which include medical costs, loss in wages, funeral and other related expenses. However, other damages that include pain and suffering, inconvenience, emotional distress etc., are not covered by the no-fault coverage.
Michigan Proof of Insurance
All drivers must be able to show proof of insurance to a law enforcement officer during a traffic stop. The best way to avoid problems in showing proof of insurance is to keep a current financial responsibility card in your vehicle at all times. This card has important information about your policy that will show law enforcement officers that you are in compliance with the law. If you are unable to provide proof of insurance, you can be found guilty of what is known as a civil infraction. The penalty is driver's license suspension for 30 days or until you provide proof of coverage on the vehicle in question.
Michigan Penalties for Lack of Coverage
Michigan's penalties for failing to maintain financial responsibility on a vehicle are harsh. If you are convicted of driving without insurance, you can be jailed for up to a year or required to pay a fine of $500. Both penalties can be applied for the same offense. Driving without insurance is considered a misdemeanor in Michigan. In order to avoid these penalties, maintain the proper insurance coverage on your vehicle at all times.
Factors That Affect Auto Insurance Rates
The most important factor that affects auto insurance rates is the driving record. If you have an impeccable driving record, you can avail a lot of discounts. However, if the driving history shows accidents, violations or citations, then you can expect your auto insurance premiums to go up.
Age is another important factor in determining auto insurance rates. Those who are below 25 years of age belong to the high-risk category and are bound to see higher premium rates. However, individuals who are over 50 years of age but below 65 will certainly see a drop in auto insurance rates. These rates are based on available statistics and the accident rates in particular age groups etc.
Gender and marital status can also play a huge role in deciding auto insurance premiums. If you are married then your premium rates would be much lower than when you are single. Women generally end up payer lesser rates than men because they are considered to be safe drivers.
The car you own, the location you live in, the safety features in your car, the make and model - are all factors that will influence the auto insurance rates. So, the best thing to do would be to shop around, obtain free quotes, and then decide on the policy you need.
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Auto Insurance Guide
- Michigan Auto Insurance Basics
- Michigan Auto Insurance Coverage
- Michigan Auto Insurance Discounts
- Michigan Factors that Affect Insurance Rates
- Michigan Driving and Traffic Laws
- Michigan Tips For Saving on Car Insurance
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