Ahh, the Great Lakes State… lighthouses, motor city, beachtowns, boating, Sleepy Hollow state park, and, of course, the great lakes!  So you’ve decided to live in Michigan and experience all these wonders.  But hold on a minute…  If you’re going to be checking out all these sights, you’ll need a good set of wheels to get around.  So, here’s a brief primer on Michigan auto insurance basics…

Auto Insurance Quotes Michigan – Who Needs Them?

Michigan requires three types of auto insurance:

• Residual Bodily Injury and Property Damage Liability Insurance (BI/PD) pays your defense costs and any damages you are found liable for as the result of an auto accident, up to the limits of the policy. The minimum limits of coverage that everyone must purchase are $20,000 for a person who is hurt or killed in an accident, $40,000 for each accident if several people are hurt or killed, and up to $10,000 for property damage in another state. These minimum limits are often referred to as 20/40/10. You can also purchase additional limits of BI/PD coverage.
• Personal Injury Protection (PIP) pays medical expenses if you or other persons covered under your policy are injured in an automobile accident. Often called “No Fault” coverage, it pays your medical expenses if you were or were not at fault.
• Property Protection (PPI) – Property protection (PPI) pays up to $1 million for damage your car does in Michigan to other people’s property, such as buildings and fences.

Auto Insurance Quotes Michigan – Is MI a “No-Fault” State?

Michigan is one of the states that has adopted the “no fault” system.

“No Fault” is a type of insurance system requiring drivers to have Personal Injury Protection (PIP) which provides compensation to the policyholders for their bodily injuries regardless of who is found “at fault” for causing a traffic accident.

The primary intent underlying the “no fault” system is to minimize litigation with the idea of lowering overall insurance costs for everyone.

Auto Insurance Quotes Michigan – Minimum Coverage Requirements

Michigan has adopted Driver Responsibility laws which you should familiarize yourself with before driving within the state.  For details, visit: http://www.michigan.gov/driverresponsibility/

Visit our page on Michigan auto insurance requirements for more details and be sure to get your free Michigan auto insurance quotes by entering your zip code in the start box on any page to begin the quoting process.