The state of Michigan car insurance laws are a bit different from most. Michigan is a no-fault state with unlimited no-fault coverage. This means that any personal injury expense will be paid for three years after an accident, no matter what the expense. This can include rehabilitation and lost wages along with actual medical expenses. Liability auto insurance in MI is also a requirement in order to register a vehicle in Michigan. The quickest and easiest way to find out if you are paying too much for your insurance in Michigan is to use the quote tool on this page. Simply enter your Zip code and compare Michigan auto insurance quotes.
The Michigan law requires every driver to carry a three-part insurance policy, which includes Personal Injury Protection (PIP), Personal Property Insurance (PPI) and BI/PD. BI/PD stands for Bodily Injury and Property Damage. As noted, PIP is unlimited, but PPI has a $1,000,000 cap for damages done by an at-fault driver. This covers property like fences and buildings within the state of Michigan. This does not cover any damages to other vehicles unless they were properly parked when they were hit. The liability limits under the BI/PD coverage is 20/40/10. This means a driver must carry $20,000 in coverage to pay for injury or death of one person, $40,000 for injury or death of two or more people and $10,000 to cover payment for property damage outside of the state of Michigan.
Additionally, coverage for other vehicles is not included in these policies unless you are found at-fault for more than 50 percent of the accident. This law is known as mini-tort. It comes into play if you are sued as an at-fault driver. Your policy will also pay your defense if you are sued. In order to cover other people’s vehicles with liability insurance, you need to extend your liability to Limited Property Damage Liability, which is not a requirement by the state of Michigan.
As with the PPI, repairs to damaged vehicles will be done by the vehicle owner’s own comprehensive and collision insurance. If you are not carrying comprehensive or collision insurance, it is a good idea to get a quote for that insurance in order to provide protection for your vehicle. It is possible to maintain cheap car insurance in MI while having a full-coverage policy.
The law in Michigan requires all vehicle owners to provide proof of insurance when requested by either law enforcement or when renewing a registration. If you are found without insurance, you may have your license revoked and your registration suspended or revoked. If you are driving without proof of insurance, the courts may suspend your license until you can prove you have insurance. You will be subject to court fines and reinstatement fees, in addition to the replacement of license plates, registrations and the cost of reinstating your driver’s license.
Failure to carry insurance may result in a misdemeanor conviction, which can carry a fine of $500 and one year in jail. Jail time and the fine may be both imposed upon a convicted violator.