Basic No-Fault Michigan Auto Insurance Is Mandatory.
by John Parr
Michigan Basic No-Fault 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.Don’t allow anyone else to drive your auto without basic no-fault insurance. Because you can be sued and be liable for that also. You could be convicted of a misdemeanor and fined from $200 to $500. You could be jailed for up to twelve months. You could be fined and jailed!
Your Michigan Auto Insurance Choices
You do not 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.
If you are injured in a car accident in Michigan, you and your family will be provided with unlimited medical and rehabilitation benefits. Also some wage loss benefits, and $20 per day for replacement services for up to three years.
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:
(B) Personal injury protection (PIP) 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.
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.
Government Regulates Insurance
Michigan auto insurance and insurance companies are regulated by the State in a competitive manner. As long as there is competition among the insurance companies, it is expected that premiums would be kept at a reasonable level. The insurance companies are allowed to make a reasonable profit and annual premiums paid by customers will be low. About 65 insurance companies sell Michigan auto insurance. They compete with one another for customers by offering a variety of rates and services. To ensure fair and level market, Michigan auto insurance companies are prohibited from communicating with other insurers about the rates they set.