In order to drive in Michigan, you must purchase Michigan no fault insurance. Michigan is a no fault state that doesn’t look for who is to blame after a car crash has occurred. They aren’t doing this because if anyone is hurt badly enough to need to seek medical attention, they will be required to file a claim under the insurance policy of the person who owns the car they were riding in.
Michigan’s Auto Insurance Requirements
Michigan isn’t under a 100 percent no fault system. This means that there are times when people injured in a car crash can sue the driver who caused the accident. In Michigan, those times are when the bodily injury has been determined to be of a serious enough nature.
Injuries serious enough to warrant a lawsuit in Michigan are:
- Broken bones
- Permanent scarring
- Permanent disfigurement
The Purpose of Bodily Injury Liability Coverage
In order for you to be able to address the three instances listed above, you are required to have bodily injury liability coverage in the amount of $20,000 for one person’s injuries. For at least two people injured in the accident, $40,000 of bodily injury coverage is required of Michigan’s drivers.
Why Property Damage Liability Is Needed
Property damage, which includes the third party’s vehicle and any other property that has been damaged in the collision, is not subject to no fault rules. The at fault person is responsible for these damages and you are mandated to purchase $10,000 property damage liability coverage to pay for them.
Michigan No Fault Insurance Law
Because Michigan is a no fault state where bodily injuries are concerned, you must purchase Personal Injury Protection (PIP) insurance. The PIP insurance is what will pay the medical bills for each driver and each driver’s passengers.
If you are hit by someone or you hit another vehicle, it doesn’t matter whose fault it was; you and your passengers will file claims with your insurance company. Your PIP insurance will pay your medical bills as well as those of your passengers.
When you purchase PIP insurance, you and your family members don’t have to be riding in your car for this insurance to follow you. If you or your family members are passengers in another vehicle when you are hurt in an accident, your PIP insurance will cover all of you.
PIP insurance, bodily injury and property damage liability coverage are all necessary in Michigan, but finding an insurance company to buy it from is a simple thing to do. Just enter your information on our website and we will do all the searching for you. We do this for you for free, and it only takes you a few minutes to have several quotes show up on your screen.