The state of Michigan requires drivers to have at least a minimum level of car insurance in place. Bodily injury liability insurance in the amount of $20,000 to pay for the medical expenses of a single person is required. At least $40,000 in coverage to pay for medical bills and expenses of all people injured in the same accident must also be bought.
Property damages are also covered by liability insurance coverage. In Michigan, drivers must buy a minimum of $10,000 in coverage to pay for the damage to the other driver’s vehicle as well as public property, such as sign posts.
Car insurance customers can buy more than the minimum level of coverage if they wish. If an accident causing serious injuries occurs, $20,000 in bodily injury liability insurance may not be enough to fully satisfy the claim. In that case, the bodily injury coverage pays out up to the policy limit and the policyholder is personally responsible for the balance. Rather than be exposed to this type of financial responsibility, a better choice is to buy a liability policy with a higher limit.
The minimum requirements for Michigan car insurance are a starting point for car insurance buyers only. Each car owner should consider the level of coverage that is appropriate for their situation before making a decision about how much insurance to buy.