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Brief Online Explanation of Michigan Vehicle Insurance

Posted on Wednesday, Feb. 9th 2011 7:42 AM by Online Vehicle Insurance Quotes in Vehicle Insurance 1 Comment »

Michigan is one of only twelve states in the nation that is a no-fault state. This means that when choosing vehicle insurance coverage, there are three basic parts that are required that all MI motorists should be aware of. The first of these is Property Protection Insurance (PPI). PPI covers up to $1 million in damages to other people’s property. This means that if a driver’s vehicle strikes another person’s fence or building, then considerable amount of the repair costs may be covered by this mandatory precaution. However, this coverage does not include any damages done to any vehicles or their contents, which includes trailers or the objects they might be carrying.

The second portion of Michigan no fault vehicle insurance is Personal Injury Protection (PIP), which would pay for any reasonable medical expenses that might come from an vehicle accident. It is also possible that a policy holder’s PIP will also pay for up to three years of wages that the driver would have earned if they had not been injured, up to a certain amount. Finally, MI requires Residual Bodily Injury and Property Damage Liability Coverage (or BI/PD). This ensures that if a vehicle owner is in an vehicle accident that their defense costs, as well as the costs of any damages that they are found liable for as a result of the accident are covered, up the an amount which was set at the time the policy was added. BI/PD coverage, however, does have minimum limits in it’s coverage. Every holder must purchase $20,000 to cover any person who is hurt or killed in an accident, $40,000 per accident in the event that multiple people are injured or killed, and up to at least $10,000 for property damage that takes place in another state.

Additional Michigan Insurance Coverage

Before driving the streets of the Wolverine State, it is important for drivers and future coverage owners to seek out all possible information on purchasing vehicle insurance in order to have full understanding of their future vehicle policy. The protection possibilities in MI do not stop at the three basic parts of a no-fault policy; there is an array of additives that can be included into one’s vehicle coverage. It is first important to note that a basic no-fault policy does not pay to repair or replace a policyholder’s car if it is damaged. In order to get the peace of mind that comes with coverage, owners would have to purchase collision and comprehensive coverage. Collision would take care of costs to a driver’s vehicle made from a collision with another car, while comprehensive coverage handles costs involved in damage to a vehicle owner’s car that may be caused by anything from falling objects, fire, or vandalism, to animal confrontations or theft.

Even though Michigan insurance among the most comprehensive in the nation, there are still some that choose to forgo insurance altogether. For this reason, many providers offer Uninsured Motorist Coverage, which ensures that an insured driver will be compensated for possible pain and suffering, as well as any excess wages that were lost because of injuries received during a hit and run accident, or an accident caused by an uninsured motorist. It’s always important to remember that knowing what type of protection to purchase and finding cheap premiums for such policies could end up saving drivers both money and frustration if damage ever came to their vehicle.

Posted on Wednesday, Feb. 9th 2011 7:42 AM | by Online Vehicle Insurance Quotes | in Vehicle Insurance | 1 Comment »

One Comment on “Brief Online Explanation of Michigan Vehicle Insurance”

  1. Sgt Steve Says:

    Not having a good grasp on the details of a coverage plan could leave a policyholder susceptible to many different costs associated with an vehicle accident. Most states have liability requirements that must be met, yet the minimum allowances are often very low. In Ohio the required liability is only $12,500 for bodily injury to one person, $25,000 for bodily injury to two or more people and $7,500 for property damage, which means that if an Ohioan motorist strikes another vehicle then their insurance provider would only pay up to $7,500 for the cost of damages to the other car. According to the Federal Trade Commission the average cost of a new car is $28,400; this means that if the other driver owned a fairly new vehicle, then the policyholder would end up paying a considerable amount of money out of pocket to cover any remaining costs of damages.

    State officials will often advise vehicle owners to increase their liability limits in order to offer an ideal level of protection, which will often only slightly raise premiums, but the benefits of being adequately covered often outweigh these expenses. It is important for consumers to understand their coverage and what they could potentially be paying in the event of an accident. Becoming educated on these topics is easy and convenient with the use of modern technology. Exploring different state government websites, for example, is an excellent way to find lists of different types of coverage that is typically offered, as well as extensive descriptions.

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