Moving To Michigan? Here’s how to find the correct Michigan auto insurance coverage
Michigan has the most difficult insurance policy around and understanding what it does and doesn’t cover is very important. People that move to Michigan get very confused with the state’s coverage and the whole idea of a no fault insurance program. Here is a basic outline of Michigan’s insurance coverage.
First off, Michigan is a no fault state. This means that you can’t go back on the other driver for damages to your vehicle caused by them. This isn’t entirely true though. Michigan does have a mini tort provision where you can go back on the other driver for up to $500 worth of damages to your vehicle. This in most cases is used to cover your deductible.
In Michigan, or any other state, it is wise to carry high liability limits. This is called bodily injury liability. Carrying the state minimum limits of 20/40/10 isn’t going to cover much. 20/40/10 means that you have coverage for $20,000 liability per person, $40,000 for the whole accident and $10,000 in property damage outside of the state of Michigan. In Michigan, property damage is automatically covered up to 1 million.
The next part is the medical coverage called PIP. Personal Injury Protection. This covers medical expenses incurred related to your vehicle. Michigan has unlimited medical coverage and it is very expensive. You can’t opt out of this coverage. Every carrier in Michigan provides this due to state law. The way to save money here is to try and coordinate coverage with your health insurance provider. The way you do this is to call the customer service number on your health insurance card and see if they coordinate with your Michigan auto insurance. They will know what you are talking about and either say yes, or no.
The final thing that most people don’t understand is the different collision options. The two main options are basic, or broad form collision. With basic collision you pay the deductible no matter who is at fault in the accident. With broad form collision, you only pay if you are more then 50% at fault. This is important to know due to only being able to go after the other driver for up to $500 according to Michigan’s mini-tort program.
These are the main parts of a Michigan auto insurance policy that people struggle to understand. The other options such as car rental reimbursement, gap coverage, etc.. are pretty standard from state to state. Follow this and ask your agent more questions that you have and most importantly, make sure you understand your Michigan car insurance policy.