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Understanding Michigan Auto Insurance
This is my site Written by jdlash on November 4, 2009 – 09:57 pm11

 

Understanding Michigan Auto Insurance

 

If you live in Michigan, then your blessed with one of the most difficult auto insurance policies to understand. Here is a basic idea of Michigan auto insurance broken down into more detail.

 

The first part is called bodily injury liability, or liability to others. This provides coverage to protect your assets if you are sued due to being at fault in an auto accident. Basically, you can be sued in Michigan if you hurt someone with your vehicle and cause pain and suffering, or substantial injury to the other driver, or passengers. My best advice for this coverage is to choose limits that protect all your assets. I wouldn’t leave anything out. I would add up 401k, savings, equity in your house, etc.. Make sure you talk in detail with your Michigan auto insurance company before making a final decision on this coverage.

 

The second coverage is Uninsured/Under Insured liability limits. This is the same as above, just switched around. If you are in an accident and the other driver is substantially at fault then you can go back on them for pain and suffering as described above. The key here is that they might not have adequate coverage, or none at all. In an essence you would be suing them, but your Michigan insurance company would actually pay. This is also important coverage in Michigan.

 

The third Michigan auto insurance coverage we are going to discuss is property damage liability and property protection insurance. In Michigan this is covered as property protection insurance, with a standard 1 million limit and outside of Michigan you can choose anywhere from $10,000 all the way up to $1 million in property damage liability coverage. In Michigan this covers if you hit a building, light pole, etc.. Outside of Michigan, vehicles can be included as part of the property damage depending on which state your in. This is why I recommend a minimum amount of coverage of $100,000 for my insureds.

 

Then there is (PIP) This is known as Personal Injury Protection. This covers your medical insurance coverage in Michigan. In Michigan medical insurance coverage isn’t capped. This means you could be hurt in an auto accident today and receive millions of dollars in coverage throughout the rest of your life. This coverage is either written as coordinated or primary. If you have health insurance you can call the service number on the back of the card to find out if they coordinate with your Michigan auto insurance. Also included in Michigan’s (PIP) coverage is a work loss. If you are hurt you may not be able to work due to injuries. Your Michigan Auto Insurance company will pay a certain percentage of your income, house cleaning, etc.. Basically things you can’t do now, that you could before the accident.

 

Next would be Michigan Mini-Tort Coverage. In Michigan you can only go back on the other driver that is more then 50% at fault for up to $500 worth of damages to your vehicle. If they don’t have insurance, then no-fault doesn’t apply and you can sue them in court. Good luck getting your money!

 

Last includes the optional coverages. You can add collision, comprehensive, car rental and other optional coverages to your policy. These aren’t required and are available to give better protection to the insured. You can read more in our latest news section about these coverages to get more detail. If you understand this, then you already know more about your Michigan Auto Insurance then most of Michigan’s drivers. If you have more questions, then you can look us up in the contact me section and we will be glad to answer any questions you may have.

 

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