The Complexities Of Michigan Auto Insurance Laws
The Complexities Of Michigan Auto Insurance Laws
Michigan insurance laws can be very complicated and confusing for the average driver. If you currently reside in Michigan or you are in the process of relocating to the state you must understand state auto insurance laws as what you are legally required to carry when you operate a motor vehicle. Michigan is one of the few states in the nation that operates based on a No Fault system. While most states have tort laws Michigan has attempted to reduce frivolous and fraudulent claims by enforcing a no-fault system. If you are injured in an auto accident in Michigan your own insurer will pay for your injuries rather than the third party insurer. This is the case no matter who is deemed at fault hence the term No-Fault. Understand what types of coverages are mandated, also the limits you are required to carry to drive legally in Michigan.
Michigan requires drivers to carry No-Fault insurance on their auto insurance policy. No-fault insurance will pay for medical and rehabilitative costs, wage loss caused by an auto accident injury, and replacement services for up to 3 years. In addition to No-Fault insurance, the state also requires drivers to carry liability and personal injury protection.
Liability is a third party coverage that will pay for injuries caused to a third party. Liability insurance consists of Bodily Injury and Property Damage coverage. Bodily Injury requirements in the state of Michigan are written on a per person and a per accident basis. Michigan insurance laws require $20,000 per person and $40,000 per accident. These limits are commonly listed as 20/40. Property Damage limits will pay on a per accident basis. Property Damage will pay to repair or replace a third party vehicle. Drivers must carry no less than $10,000 per accident in Property Damage coverage.
Personal Injury Protection, commonly referred to as PIP, is also required in the state of Michigan. PIP will pay for expenses you incur resulting from an automobile accident up to the limits stated on your policy. If you do not have medical insurance is is recommended to carry higher limits of PIP coverage.
Michigan is a very complicated state in terms of insurance. If you are relocating from another state, you may be overwhelmed with the differences in coverage requirements. It is strongly recommended to consult an experienced auto insurance agent if you are new to driving or if you have just recently moved to the state. While may believe the laws in Michigan are too strict the state has enforced these strict laws to protect all drivers on the road. Quote a variety of Michigan insurance policies through different insurers and bind coverage will a respected insurer offering affordable coverage.
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