Understanding Michigan Auto Insurance

If you’re planning on driving a car in the state of Michigan, you’re required by law to purchase a Michigan no-fault auto insurance policy. This insurance policy must be in place before you can register your vehicle. Drivers who fail to purchase insurance but get on the road anyway can be charged with a misdemeanor. If you get caught, you might end up paying a fine, serving time in jail, or having your license suspended. It’s easy to see why it’s important to buy Michigan auto insurance.

Car insurance in Michigan should follow a 20/40/10 structure (at a minimum). This means that drivers should be carrying $20,000 of bodily injury liability coverage, $40,000 of coverage for others involved in an accident, and $10,000 of property damage liability coverage. Personal injury protection and property protection insurance are also mandatory. Should you be injured in an accident, your insurance will make sure you’re compensated

What is Michigan No-Fault Insurance?

Michigan car insurance follows a no-fault auto insurance system. Under a no-fault system, a driver doesn’t need to prove that the other party was at fault for a crash in order to get compensation. If they get into an accident, they simply file a claim, and their insurance company gives them a settlement. Your Michigan insurance policy will pay for medical expenses, lost wages, and property damage repairs. There’s no conflict over whether one driver was more responsible than the other. Michigan is one of twelve states that has no-fault insurance.

Most states use an at-fault system whenever there’s an accident. Whichever driver is judged to be more at fault will be required to pay the other party for their medical expenses, lost wages, and property damage. The downside of an at-fault system is that it can lead to lengthy court cases. If a driver denies they were responsible for an accident, then the other driver might need to sue them in order to gain compensation. A no-fault system eliminates potential lawsuits and prevents the court system from being bogged down by these cases.

The major downside of a no-fault system is that insurance premiums are usually higher than in at-fault states. In fact, the rates for auto insurance in Michigan are the highest in the nation. This is because you’re required to carry a high amount of personal injury protection. Michigan guarantees that insurance will pay an unlimited amount of medical and rehabilitation bills for someone injured in an accident regardless of whether they’re at fault.

How to Get More Affordable Insurance

Even though the average rates are high, it’s still possible to get cheap car insurance in Michigan. Your insurance rate will depend on a number of factors, including your age, driving history, and credit score. The smartest thing you can do is look around for multiple car insurance quotes in Michigan. Our insurance agency works with a variety top-rated insurance companies. We can take an impartial look at the options and compare auto insurance quotes in Michigan. Our goal will be to find the best package for your needs.

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