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Michigan Auto Insurance
by John Parr
Allstate has been an industry leader in US and Michigan auto insurance for 80 years. We are advocates for consumers. We participate in all aspects of insurance including the elements we insure, such as home and autos. Let’s see if we can help you to better understand Michigan auto insurance.
Most of the people I meet during my workday have a vague understanding of their auto insurance in Michigan. Particularly is this so with the concept of no-fault motor car insurance. This phrase is hazy and mystifying to normal people. It must have been coined by a bureaucrat or a modern day poet. Hopefully I can break it down for you into easy sections.
White Ford SUV in the woods
As a young man, I did not understand no-fault auto insurance until my first vehicle was rear-ended and badly damaged. What a disagreeable blow to find I had to pay for the repairs to my car when I didn’t cause the crash. I was covered only by “basic insurance no-fault”.
A Michigan State Police badge
No-Fault Michigan Auto Insurance Is Mandatory.
Michigan Auto Insurance is mandatory by law. To be more specific, basic no-fault insurance is mandatory. Every registered vehicle must be insured with basic no-fault insurance in Michigan. If you are the owner of a car and drive it without basic no-fault insurance you can be sued. You can be held personally liable for damage. You could end up in jail.
Michigan Office of Insurance Regulation Logo
Your Michigan Auto Insurance Choices
You don’t have a choice to ‘buy’ or ‘not to buy’ basic Michigan auto insurance. You can, however, choose what elements of insurance you purchase. Consequently, you alone will make the decision how much you are going to pay for coverage.
Also, you can choose your insurance company. Michigan auto insurance is one of the most complete no-fault insurance system in the USA. And it is offered by dozens of insurance companies.
Red Motorized Scooter
Only if you have Michigan auto insurance – basic no-fault !!!!
Parts of No-Fault Auto Insurance:
(A) Basic no-fault coverage that by law must be carried by every owner and every registered vehicle :Basic No-Fault Auto Insurance
(B) Personal injury protection (PIP Personal Injury Protection will pay all necessary medical costs if you are hurt in an auto accident.
C) Property protection (PPI) will pay up to $1 million for damage to other people’s property caused by your car in Michigan. This coverage includes buildings and static structures. Residual Bodily Injury and Property Damage Liability Insurance (BI/PD) will pay your defense costs up to the limits of the policy if you have an accident. There are minimum limits of coverage that everyone must purchase.
These limits are $20,000 for a person injured or killed, $40,000 for each accident if several people are injured or killed and a maximum of $10,000 for property damage in another state. These minimum limits are often referred to as 20/40/10.
Yellow School Bus
What is not covered by basic no-fault policy? It will not pay repair or replacement cost of your car if it is damaged or stolen. If you want your vehicle covered for repairs or replacement, you need to purchase Collision and Comprehensive coverage.
Collision coverage will pay to repair or replace your vehicle.
Comprehensive coverage will pay if your car is stolen, hits an animal or is damaged by falling objects, fire, flood, and vandalism.
Both Collision and Comprehensive insurance coverage can be purchased from any of the insurance companies regulated by the state. To reduce the cost of coverage, the insurance companies sell optional Collision and Comprehensive insurance with deductibles. Deductibles are dollar amounts that you will pay towards the cost of damage to your vehicle. A deductible of $500 per accident is fairly common but you have a choice of paying more than $500.00, thereby lowering you annual insurance premium.
Michigan State House on a Blue Sky Day
Government Regulates Insurance
Michigan auto insurance and the insurance companies are regulated by the State in a competitive manner. As long as there is competition among the insurance companies, it’s expected that premiums would be kept at a reasonable level. The insurance companies are allowed to make a reasonable profit, but competition between companies should keep the annual premiums at a reasonable cost.
Perhaps you came to our website to get some good information and excellent advice. You may be considering a vehicle purchase and want to know the cheapest cars to insure. We can help you! Or do you want to switch auto insurance companies to lower your premiums! Or are you a new driver! We would love to help you select the best coverage for your car, truck, RV, or any vehicle. We guarantee we can give you a better deal than anywhere else.
If you’re feeling lost with all the choices and our help articles and money-saving tips are not enough, please Email me or phone me. I’ll guide you through it. Allstate makes shopping for insurance simple and a pleasure. Get the insurance rate you’re looking for.
Call our office or drop by. Map of office location and hours of business.
Parr Allstate Agency has been in business for decades, providing lowest price coverage to customers in every corner of Michigan. And if you move out of Michigan you can stay with Allstate. Allstate has agencies in every state.
Safe drivers Reduce costs for everybody. And at Allstate, they pay a lot less. Safe drivers can save 45% or more on their car insurance. Particularly so with teenage drivers that learn to drive under the state Graduated Driver Licensing program.
Early Signing
You don’t have to wait until your policy expires to switch auto insurance companies. Switch today and get up to another 10% discount on auto insurance. We can even do the switching for you.
Discount for Good Student
Single full-time students under 25 can save up to 20% just by getting good grades.
Passive Restraint
You can save up to 30% if your car came from the factory with airbags and motorized seatbelts.
Anti-Lock Brakes
If your car’s equipped with anti-lock brakes, you get a 10% discount.
Anti-Theft Devices
If your car’s equipped with an anti-theft device, you can save up to 10% on your premium.
Multiple Policies
Save an extra 10% on your auto insurance just by insuring your home or apartment with us, too.
Auto Life Discount
With the Allstate Auto/Life DiscountSM if you buy any life policy from us, we’ll give you a discount on your Allstate auto insurance.
Allstate is one of the largest insurance companies in the USA. You’ll be in good hands.
Small Car Insurance
The right small car insurance for anyone and you in particular depends on the coverage you feel you need and the annual premium and deductible that best suit your financial circumstances. For example let’s look at the Smart ForTwo small car. Allstate bumper-to-bumper guide will teach you about the different levels of car insurance coverage. Check out the Allstate state-by-state guide to auto insurance. Educate yourself about the coverage options available in your state of Michigan.