Michigan Car Insurance Requirements, Laws and Coverage
Just like other states, Michigan has its own set of insurance requirements for car owners. The car owner must meet the minimum requirements of the insurance before he is allowed to drive. In Michigan, every car owner must possess the no fault insurance policy. The no fault insurance policy can be divided into three categories including personal injury protection, property protection insurance and residual liability insurance.
The personal injury protection offers coverages for the medical costs of the policy holder. The insurer will also compensate the wages for up to 3 years. The minimum PIP amount is $4589 per month. In case the policy holder was killed in the accident, the beneficiaries will be paid an allowance for up to three years. In addition, the policy holder can receive $20 daily for paying the replacement services such as maid services, gardener, and etc.
You must possess a PPI insurance that worth $1 million dollars. The PPI insurance will pay for the damage costs of the property caused by your car. It will also pay for the damage costs of other vehicles that are parked nearby to the property.
In addition, you have to possess the residual liability insurance. The residual liability insurance is available in two forms including bodily injury insurance and property damage insurance. The residual liability insurance will pay for the legal fees if you are being sued by the third party. For private passenger, the car owner need to purchase $20,000 worth of coverages for accident that involves a single person. The requirement for accident that involves multiple passengers is $40,000. The property damage requirement that the car owner must meet is $10,000. The limits of the residual liability insurance can be described as 20/40/10. If the court gives an order to pay more than these amounts, you will be responsible to pay for the rest of the amounts.
The insurance certificate must be kept in a safe place. You should bring the insurance certificate with you while you are driving. If a police stops you for traffic violation, you will be able to show the insurance certificate. The insurance certificate proves that you are covered by insurance.
If you don’t own car insurance, the state authority can suspend your driving license. You will not be able to renew your license plate. You won’t be able to renew your license. There is a also a possibility that your car registration will be terminated. Because you are unable to show the insurance certificate, your license will be suspended until you are able to show proof and pay $50 fee.
The requirements stated above are recommended by SOS. It is best that you buy more insurance coverage than the minimum requirement. By buying more coverage, you will be safer. In case the damage cost is higher than the minimum requirement, you don’t have to use your own money to make compensation.
Every insurance company charges a different rate so you should perform shopping comparison. By getting quotes and comparing them online, you will be able to afford extra coverages at a cheaper price.
Michigan Department of Insurance
- Ottawa Building
- 3rd Floor 611 W. Ottawa
- Lansing, MI 48909
- Phone: (517) 373-0220
- Fax: (517) 335-4978
- www.michigan.gov/dleg
Michigan Department of Transportation
- 425 W. Ottawa St.
- Lansing, MI 48909
- Phone: 517-373-2090
- www.michigan.gov/mdot/
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