Michigan Auto Insurance Requirements Explained

Many motorists in Michigan make the mistake of purchasing auto insurance without comparing coverage and pricing correctly. In many cases, road users either find themselves being woefully underinsured if they are involved in a road traffic accident or they end up being significantly overcharged for a policy that doesn’t offer the best type of coverage to suit their personal requirements.

Before opting for a new policy or renewal, road users in Michigan should make themselves aware of the laws relating to auto insurance that surround the Wolverine State and ensure that they stay within the boundaries of minimum level mandatory requirements at all times.

No-Fault Auto Insurance

Michigan operates as a no-fault state. In the event of a road traffic accident, vehicle users will have all expenses for bodily injury and property damage covered by their own auto insurance carrier. This method differs greatly from the Tort system used in other US states where all costs are met by the auto insurance company of the at-fault driver.

Liability Insurance

No-fault laws were applied to reduce the number of cases relating to road traffic accidents that found their way into court. The influx of lawsuits began to put a huge strain on the US legal system and no-fault auto insurance was originally implemented in Michigan as a means of relieving the pressure. However, it should be noted that there are still notable exceptions to the no-fault system and because of this, motorists are still required to carry bodily injury liability and property damage liability as a mandatory measure.

The minimum levels of mandatory auto insurance coverage for the state of Michigan are as follows:

  • $20,000 worth of bodily injury liability per person
  • $40,000 worth of bodily injury liability per accident
  • $10,000 worth of property damage liability

Personal Injury Protection

Personal injury is also a mandatory requirement because of the no-fault laws that surround the state of Michigan. Personal injury protection covers the cost of medical expenses, funeral costs and loss of earnings for the policyholder and any passengers travelling in their vehicle at the time of a road traffic accident. It is recommended that road users purchase as high a level of personal injury protection as possible. If a motorist already has a sizeable level of health insurance in place through a seperate policy, they can opt to carry a minimal level of personal injury protection instead.

Auto Insurance Additions

At the present time, there is no legal obligation to purchase any other types of auto insurance coverage although many motorists using new or nearly-new vehicles would be best advised to purchase as detailed a level of protection as possible. Collision coverage pays for accident repairs to the vehicle of the policyholder while comprehensive insurance covers the cost of repairs or replacement when a vehicle is damage by an act of theft, vandalism or adverse weather conditions.

Uninsured/underinsured motorist coverage offers protection from other road users who don’t have their own effective policy in place while GAP insurance is ideal for lease or hire vehicles and will pay for any shortfalls in a loan agreement if the settlement figure offered by an auto insurance carrier doesn’t meet the level of all outstanding payments.

Choosing the Best Option for your Auto Insurance Requirements

Price comparison sites now enjoy a massive percentage share of the auto insurance sales market and many motorists in Michigan are already saving hundreds of dollar every year by purchasing their policies online. Promiga Auto Insurance Quotes operate in partnership with all of the leading US carriers to bring our customers cost-effective options that provide detailed coverage at exactly the right price.

By applying for multiple auto insurance quotes from our extensive list of A-rated providers, motorists are able to review policy offers in detail in order to find the best option for meeting their personal requirements. Promiga never charge our customers a fee or commission and all of our free auto insurance quotes are provided on no-obligation terms.  What’s more, we never ask for personal details and our range of exceptional deals can be accessed with a simple Michigan ZIP code.

Auto Insurance Articles

To support our easy-to-use auto insurance platform, Promiga also provide a constantly-increasing number of related articles that are designed to help you maximize your savings. We offer auto insurance advice for every US state and also provide detailed information about policy purchases in Canada, the United Kingdom and Australia. Promiga Auto Insurance Quotes are dedicated to providing our customers with the very best one-stop shop for all of your coverage requirements.

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