Michigan Car Insurance
Laws and Regulations for Auto Insurance for the State of Michigan
Car insurance in Michigan follows certain rules, regulations, and laws. As a driver, there are responsibilities that you must adhere to if you live in the state of Michigan. If you don’t abide to the state laws then consequences will be made, for example, license suspension and multiple fines. Here, we will indicate what the necessities are if you are looking to become an official owner of a vehicle or an official local driver.
In 2010, the average cost of car insurance in Michigan is $2,029, much higher than the nation’s average of $1,577
For the state of Michigan, it is illegal to drive without liability insurance. Because Michigan is known for following the No Fault Insurance system, it requires that all drivers must be responsible for any incidents generating losses, if at fault. This means that if innocent people were affected by an accident made by your error, their payments for these damages (whether self-damaged or property damage) will be covered straightaway by your provider.
This No Fault Insurance system was created by the state lawmakers that declares that all citizens of Michigan must:
1. Assure that persons injured in auto accidents are compensated quickly and equitably, for medical costs and lost wages
2. Limit lawsuits so that benefits could be paid out quickly
Liability Insurance
Liability insurance pays for damages to the other person and their property (if applicable). Michigan has set minimum liability limits which are:
- $20,000 bodily injury liability for 1 person
- $40,000 bodily injury liability for all injured in 1 accident
- $10,000 property damage liability
Penalties for Driving without Insurance
With the changes made in September 2010, driving with no proof of insurance is a Category 2 Offense. The fine could range from $200-$500, and must be paid for 2 consecutive years thereafter. More severe consequences could include 1 year in jail or 30-day driver’s license suspension.
Collision Coverage
Although drivers in the state of Michigan are not required to have Collision Coverage, the bank or lien holder may require you to purchase it if your vehicle is bought with a loan or if your car is leased. Remember to only buy enough Collision Coverage to protect what your vehicle is worth. Many people overlook that factor.
Comprehensive Auto Insurance
Again, Comprehensive Auto Insurance is not required to have by the laws of Michigan, but will be mandatory by your bank or lien holder.
Rental Car Insurance
Since it is crucial that Michigan drivers are protected through Liability Insurance, Rental Car Insurance is also follows under that umbrella. If you are renting a vehicle for personal use, then your provider will cover the least minimum auto liability costs (as stated in your plan). This also typically applies if a rental car is needed (when your car is currently in the auto shop). Check with your insurance package to make sure you have a grasp of what it covers, and to see if you need to opt for a plan that offers more for your needs.
After looking into these factors on Michigan’s car insurance, the next stage is to gather together comparables and see how many discounts and savings you could qualify for. Because Michigan has much higher premiums than other states within the country, every dollar saved is worthwhile. Simply enter your zip code below to get auto insurance quotes and see which one best pertains to your life and budget better.
Sources:
Michigan Auto Insurance
Wiki: No Fault Insurance
Car Insurance: Michigan
