Cheap Car Insurance Quotes Michigan – MI
Michigan is a state that follows a no-fault system. Under this type of system, drivers who are involved in a car collision are guaranteed to receive a certain amount of money for their and their passengers’ bodily injuries regardless of who caused the accident. In order to make this system work, Michigan mandates that its drivers purchase auto insurance to drive legally in the state.
The Requirement for PIP Insurance
After a car collision, the driver and passengers can file a claim for Personal Injury Protection (PIP) insurance coverage but they will not go to the at-fault person’s auto insurance company; they will go to the car insurance company of the person in whose car they were driving or riding. So that this can occur, each driver will have needed to purchase PIP insurance according to Michigan’s laws.
Michigan requires that each driver purchase PIP insurance that will cover the injured’s’ medical bills and any time they need to take off from work.
Restricted Lawsuits for Non-Economic Losses
Under Michigan’s laws, lawsuits due to car collisions resulting in bodily injuries are restricted. In Michigan, the two different types of claims possible for its residents are either economic or non-economic. The economic losses are dealt with as described above but non-economic losses are the ones that will require the injured meet a more rigorous threshold.
The Michigan No-Fault Insurance Act
The Michigan No-Fault Insurance Act allows for lawsuits against an at-fault driver under certain circumstances. If the injuries result in death, disfigurement that is both serious and permanent or the injury results in permanent impairment of a body part, lawsuits can be initiated.
Accidental Property Damages in Michigan
Property that is accidentally damaged in a car collision will not fall under the no-fault system in Michigan. The at-fault driver and insurance company will be responsible for paying to repair or replace property damaged in a collision. For this purpose, Michigan requires that people purchase Property Protection Insurance (PPI) in the amount of $1 million.
Liability Insurance in Michigan
Liability insurance coverage is known as third-party insurance because it will apply toward the bodily injuries and property damages of third-party claims only. Although Michigan is a no-fault state, the injured may be able to qualify to sue the at-fault driver for bodily injuries.
Because lawsuits are still a possibility, Michigan requires liability coverage of its drivers in at least the following amounts.
• Liability for Bodily Injury of One Person – $20,000 for medical expenses or funeral costs
• Liability for Bodily Injury for All Injured – $40,000 for medical expenses or funeral costs for all people injured in a car collision
• Liability for Property Damages for All Affected – $10,000
The Necessity to Maintain No-Fault Insurance
In Michigan, drivers cannot opt to leave a deposit with their Treasurers or take out a surety bond as they can in other states to demonstrate that they will be financially responsible if a car collision occurs. The only thing they can do is purchase the no-fault insurance coverage that Michigan’s insurance companies sell in the amounts described above. Those who do not may need to pay a fine between $200 and $500 and possibly be sentenced to jail for a maximum of one year.
Residents of Michigan who decide to be uninsured can also lose their licenses and registrations to suspension. Reinstating them will mean proving they have purchased a no-fault auto insurance policy and paying their fines.
Michigan drivers need to purchase an extensive amount of coverage, and this may be the reason that their auto insurance rates tend to be so high. The average car insurance rate in Michigan is around $400 higher than the average people are paying across the nation. Even though this is the case, drivers only need to obtain discount insurance quotes in Michigan on this website to find more reasonable rates.