The state that you live in determines the auto insurance coverage you must have.
Being one of the most expensive car insurance states in the US, Michigan has a no-fault system that requires unlimited Personal Injury Protection (PIP) and it’s important to analyze the different coverages and requirements when it comes to getting car insurance online, as seen in the table below;
|Coverage||Requirements In Michigan|
|Bodily Injury Liability. This covers the expenses incurred due to the injury or death of another when the accident is your fault||$20,000 per person and $40,000 per accident
However, on July 2, 2020, there’s been a change and the monetary requirement is now;
$50,000 per person and $100,000 per accident and the existing policyholders that choose not to select a lower limit will default to $250,000 per person and $500,000 per accident
|Property Damage Liability. This covers the damage that comes to another’s property including homes and buildings when the accident is your fault||$10,000 per accident|
|Personal Injury Protection. This covers the medical or funeral expenses incurred if you or your passengers get hurt in an accident||Unlimited lifetime coverage with both medical and limited non-medical coverage
Starting from July 2, 2020, medical coverage options range from no coverage to continuing unlimited coverage and it largely depends on the type of health coverage someone possesses and what is the best for their specific needs
Limited non-medical coverage is for work loss, funeral, survivors loss and more
|Property Protection. This covers the expenses resulting from the damage of buildings, parked vehicle and any other stationary structures and it doesn’t matter who is at fault||$1,000,000 limit for the damage|
The above are the compulsory or minimum car insurance in Michigan, there are however some optional coverages that may be offered by some companies and they are;
- Uninsured Motorist which covers the medical expenses after you are in an accident and the driver that caused it doesn’t have insurance.
- Underinsured Motorist which covers the medical expenses if you’re involved in an accident and the driver at fault has limited liability insurance.
- Collision which covers the expenses to repair or replace your car after it’s been involved in an accident.
- Comprehensive which covers the expenses to repair your car after it’s stolen or damaged.
No-Fault System in Michigan
Michigan is a no-fault state meaning that drivers must and should carry PIP and the drivers can choose from six different categories of this insurance and they are;
- Unlimited coverage
- Coverage up to $500,000
- Coverage up to $250,000
- Coverage up to $250,000 with a medical exclusion
- Coverage up to $50,000 for policyholders enrolled in the Medicaid
- PIP medical opt-out for those enrolled in Medicaid
Therefore in Michigan, if you’re involved in an accident, your carrier is responsible for your medical expenses only and not that of others and the likelihood of being sued is low but you can be sued if;
- You caused the accident of someone out of state
- The accident that you are involved is in another state
- You caused someone’s death or injury in an accident
- You caused an accident where the owner of the vehicle has no insurance
Insurance Discounts in Michigan
Most providers have ways of saving hence it’s easy to get insurance discounts and you can check each company for their unique discounts. The following discounts will help you get started;
- Student discounts
- Driver safety course for those under 21
- Payment in full
Driving Requirements for Teenagers In Michigan
It is vital for teen drivers in Michigan to know about Michigan’s driving laws. If you are a teenager in Michigan, you have to finish the first part of driver’s education and get level 1 learner’s license once at the age of 14 years and 9 months. Having driven for six months, you can get level 2 intermediate license at the age of 16 with 50 supervised hours, 10 being in the night. After this, you can’t drive between 10 pm and 5 am and with not more than one passenger who is younger than 21 except for family members. At age 17, all restrictions will be lifted having obtained the level 3 full license for qualified drivers
Failure to Provide Car Insurance
You have to always carry proof of car insurance with you as evidence and you may be asked during traffic stops to provide proof and failure to do so, you will be required to provide a fee of $200 which is assessed for two years consecutively. Hence driving without insurance in Michigan is a misdemeanor and if convicted, you will be required to pay responsibility fee. You may face one year in jail and surrender your driver’s license for a period of 30 days. If you want to reinstate it, you can pay a $125 fee