Michigan Auto Insurance Requirements
The State of Michigan requires that every driver have two no-fault policies in place when operating a motor vehicle. This includes a Personal Injury Protection policy, commonly referred to as a PIP, and a Property Protection Insurance policy, or PPI. It is also necessary for the Michigan driver to carry a classic liability policy of 20/40/10, as well.
A Personal Injury Protection policy in Michigan requires that the driver have enough coverage to pay all of the medical expenses that may be incurred as a result of an automobile accident plus three years of compensation for any lost pay or services. Currently the maximum amount that can be paid for lost income or the death that may result from an accident is $4,713 each month a maximum of 36 months. Having a good health insurance policy in place or requesting a deductible on your insurance premium can reduce the premium that you may be required to pay. The Property Protection Insurance policy pays up to one million dollars for any damage to property when the accident occurs within the state of Michigan.
The classic liability policy of 20/40/10 that is mandatory for drivers to have on their Michigan automobile insurance coverage provides protection for the driver if they were to be sued following an accident. The break down of this policy is as follows:
* Bodily Injury Liability Coverage of $20,000 per person or $40,000 per accident
* Property damage Liability Coverage of $10,000
* Coverage for Personal Injuries for the Driver
Michigan Auto Insurance Laws
The State of Michigan requires that every driver carry at least basic no fault insurance coverage on their vehicle. This type of policy provides for the minimum insurance requirements set-up by the state. Drivers that fail to have this coverage or are unable to produce proof of having this insurance coverage in the event of being stopped by a police officer or being involved in an accident face hefty fines and punishments. The court may find you guilty of a civil infraction and suspend your license for at least 30 days or until the driver is able to provide proof of coverage to the court.
Michigan Auto Insurance Coverage
The Basic No-Fault Insurance Coverage required by the state of Michigan does not pay for any type of damage or repairs to your own vehicle when you are involved in an accident. There are situations in which an owner of a vehicle can collect for damage caused when their vehicle is properly parked and another driver causes damage to their vehicle. The other driver’s insurance coverage may pay for your vehicle to be repaired if this is a coverage on their policy.
There are additional collision policies that can be purchased through your insurance agency to provide coverage to your vehicle should you need repairs as a result of an accident or other damage caused to your vehicle. These policies vary as to how much compensation can be collected or how much you will need to pay as a deductible. Some of these collision policies also carry exclusions as to what is covered.
Cheap Michigan Auto Insurance Quotes
Most insurance agencies that provide insurance coverage to Michigan drivers will give you free quotes on the policies that they will handle for you. The premiums for these insurance policies can be substantially different from one another in cost. Most insurance agents have certain discount programs that can drastically decrease the premiums that you will need to pay for your insurance coverage. Some of the discounts can be found for good students, years of clean driving and belonging to certain groups or organizations such as a credit union.
There are online insurance agents as well that will provide quotes for free. Some sites specialize in providing you with the opportunity to compare quotes from several different insurance providers conveniently on one site.
Michigan Auto Insurance Ratings
Most insurance companies that you will find when looking for Michigan Auto Insurance coverage have certain ratings that they will look at when providing you with a quote on your premium. Some of the ratings that weigh the most on the cost of your insurance premium includes a credit score rating, your driver’s rating and employment ratings. Insurance companies have a right to base the amount of your premiums on these specific ratings if they choose to do so. This is because these agencies feel as though these ratings are a good determining factor as to the driver’s level of responsibility, reputability and character. This is one area that has been disputed and debated since it was allowed into law.
Michigan Auto Insurance Rates
Depending on many different factors Michigan drivers can expect to pay an average of $400 to $900 on their insurance coverage premiums every six months. There are different payment options available through different insurance agents. Common payment methods available to drivers include a 50/50 payment, which allows them to pay half of the premium amount immediately and the remaining half after three months. Another common payment plan is a bi-monthly payment plan with a payment for two months of coverage being due prior to the covered period of time. There are a few agents that will allow monthly payment plans should you be willing to allow them to draw the amount of your payment from a checking account or credit card. Some insurance companies give their customers discounts if they pay their entire 6 month premium at one time. This discount can be as much as 1/3 of the premium cost.
Michigan Auto Insurance Companies
There is a wide variety of Michigan Auto Insurance Companies that are available to the drivers of this state. Some things that you will want to look at when making your selection on which company to go with includes the reputability of the company in your area, the cost of their premium packages and the history that you may have with a specific company. It is always advisable to find an insurance company with the intention of having a lengthy relationship with them. Switching from one insurance company to another can actually have negative results on your premium expenses.