Buying Michigan auto insurance is not something that you buy once in your lifetime and then automatically renew year to year. Ideally, you should review your Michigan auto insurance coverage annually to make sure that the type and level of protection you have in place is still right for you.
The reason you buy auto insurance is to protect your assets. As you accumulate more things, you will need to make sure that you have enough insurance in place to make sure that you won’t be personally responsible for paying for the damages you cause in an accident.
You can always choose to buy a higher level of coverage than the minimum amount required by law. If you skimp on your Michigan auto insurance, you may not have enough coverage in place to pay for injuries and property damage caused by you in an at-fault accident.
Another time when you should review your current auto insurance coverage is when your car has been paid for in full. At that point, you may wish to consider dropping your collision coverage and limiting the comprehensive protection to fire and theft only. This part of the policy only pays out based on the vehicle’s cash value, not what you originally paid for it or the cost to replace it. If the car has little cash value, it doesn’t make sense to keep full coverage in place.