The Complete Guide to Michigan Auto Insurance and PIP

The state of Michigan currently uses the no-fault auto insurance system that sees road users claiming from their own policies in the event of a road traffic accident. Driving without sufficient auto insurance coverage in place is an offence, and vehicle owners must be able to provide proof of a valid policy before the Michigan Department of Motor Vehicles will issue license plates. No-fault auto insurance pays for medical expenses and lost income when the policyholder is injured in an accident, and also pay for damage caused to the parked vehicles of third parties and their property, irrespective of who is to blame.

Personal Injury Protection

Personal injury protection is a vital part of a Michigan no-fault auto insurance policy, and covers all medical costs accrued after an accident. As well as picking up the bill for treatment, personal injury will cover a loss in income for up to three years. Personal injury protection is broken down as follows:

  • Injuries sustained in a road traffic accident are covered under the terms of general medical expenses. There is no maximum limit on medical payment costs for any injuries sustained as the result of an auto accident
  • Personal injury protection covers loss of income for up to three years. Limits are applied according to the gross salary of the policyholder, and this is set at a level of 85% of earnings
  • If an auto insurance policyholder is unable to complete household duties in the wake of a road traffic accident, personal injury protection allocates $20 per day for replacement services for a maximum period of three years
  • Personal injury protection provides a survivor’s payment to the bereaved family of the policyholder. The amount of the survivor’s payment varies and an independent assessment will usually be carried out before a final sum is offered. In some cases, the payment will also pay for necessary services relating to the family of the deceased policyholder
  • If the policyholder dies as a result of accident-related injuries, personal injury protection allocates up to $1,750 towards the cost of funeral expenses
  • Personal injury protection covers the policyholder, and any other person travelling in the vehicle at the time of a road traffic accident

When the benefits of no-fault auto insurance are combined with private health and disability coverage, it is usually referred to as excessive medical and wage loss and this can significantly lower your Michigan auto insurance rates. It is important to note that some private healthcare providers place restrictions on combining no-fault auto insurance benefits with the services they provide. Some companies, such as Medicaid, refuse auto insurance policyholders to combine their personal injury protection with their private health insurance at all.

There are two different types of medical coverage applied to the personal injury protection section of a Michigan auto insurance policy. Primary medical coverage is the main part of no-fault personal injury protection, and takes care of medical expenses accrued by the policyholder after an accident. Excess medical coverage is utilized when the policyholder chooses to combine their personal injury protection with health insurance.

Work loss coverage is also split into two definitive areas. Primary work loss covers loss of income through the personal injury protection section of an auto insurance policy. Excess work loss covers excess expense accrued beyond predefined payouts, and a $300 deductible is usually applied when this area of coverage is used. Work loss waivers are available on personal injury protection plans and indicate that the policyholder is over the age of 60 and ineligible to collect work loss benefits of any kind.

Property Protection Insurance

Property protection insurance covers the cost of repairs and replacement relating to the property of third parties, but doesn’t extend to other vehicles involved in an accident. Auto repairs must be paid for on one’s own policy irrespective of where blame lies for the accident. Damage to property can include buildings or fences, and also extends to parked cars where no other driver was present. A $1 million limit is placed on the property protection section of an auto insurance policy.

Residual Bodily Injury and Property Damage

No-fault auto insurance prevents the policyholder from being sued under most situations, but there are some notable exceptions to consider. Residual bodily injury and property damage coverage pays for defense costs beyond the limits of an auto insurance policy. This level of protection can be applied if another driver is killed, seriously injured or permanently disfigured when you have been the cause of a road traffic accident. Coverage can also come into play if you are involved in an accident with a road user in a vehicle that is registered outside of Michigan, or if you are involved in an accident outside of your own state. Residual bodily injury and property damage coverage may also become effective if you have deliberately set out to hurt someone with your vehicle.  The minimum limits for residual bodily injury coverage are $20,000 per person and $40,000 per accident. The minimum limit for residual property damage coverage is $10,000.

Optional Coverage

Michigan road users are able to take out uninsured/underinsured motorist coverage as a means of covering the cost of medical treatment if personal injuries are sustained after an accident with another road user who doesn’t have sufficient auto insurance coverage in place. The limits placed on uninsured/underinsured motorist coverage must be the same as those placed on other liabilities. This type of coverage is for the exclusive use of the policyholder and any passengers who are inside their vehicle at the time of an accident caused by an uninsured or underinsured driver.

Where to Purchase Auto Insurance Coverage

Although it is still entirely possible to purchase auto insurance from traditional outlets such as land-based offices and telephone call centers, most Michigan road users now opt for price comparison websites when they purchase or renew a policy. Price comparison websites have a number of distinct advantages over other methods of obtaining auto insurance:

  • Price comparison websites give instant access to a wider range of auto insurance companies from a single location, and alleviates the frustration of having to make multiple telephone calls or visiting multiple websites
  • Reputable price comparison websites never ask for sensitive personal information, and are happy to provide auto insurance quotes with nothing more than a local ZIP code
  • Online auto insurance quotes on reputable price comparison websites are free of charge, and no obligation is placed on site visitors to actually make a subsequent purchase
  • By obtaining multiple auto insurance quotes from a price comparison website, consumers are able to review and compare policies on a like-for-like basis. This gives road users in Michigan the perfect opportunity to sift through different quotes until the perfect combination of price and coverage are found
  • Price comparison websites are largely anonymous, and this means that you’ll never be subjected to nuisance telephone calls from unrelated companies and junk mail in your inbox or mailbox

At Promiga Auto Insurance Quotes, we’re continually improving our services by researching the latest industry reviews and seeing which carriers perform best. We’ve made a pledge to our customers to only use the leading auto insurance companies in the existing marketplace, and that’s a promise we intend to keep. All of our auto insurance providers enjoy the very best ‘A’ ratings are noted for their superior levels of coverage, excellent customer service and efficient claims handling. Promiga never charge a fee or commission when you purchase a policy through one of our preferred auto insurance providers.

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