Michigan Auto Insurance Quotes and
Coverage Guide
Michigan Motor Vehicle Insurance
Questions & AnswersQ: Is
auto insurance mandatory?
A: Yes. If you’re from the Wolverine State or
planning to move here, you need to know that
Michigan law requires insurance, and every car
registered must be insured. Even to get your license
plates, you have to get basic coverage. And one
other small detail for the uninformed: It is a
misdemeanor to drive or let someone else (including
wolverines) drive your car without basic insurance
coverage.
Q: Is Michigan a "no-fault" state?
A: Yes, Michigan is what is known as a
no-fault state. Michigan adopted the no-fault in
1973 to increase the level of benefits paid to
injured persons, make sure such payments are made
promptly, and to reduce the proportion of premium
dollars paid out for legal and administrative costs
caused by wild-eyed, slathering Michiganders who
think they’re wolverines and get behind the wheel
then cause injury and/or damage to someone’s person
or property. It’s also for the non-vicious,
non-biting, laid-back wolverine who innocently gets
into an accident. A Michigan no-fault policy
provides unlimited medical and rehabilitation
benefits for wolverines that need it to get back to
their normal, ordinary, daily lives. It provides
wage-loss benefits for up to three years and $20 per
day for replacement services if you are injured in
an auto accident, regardless of who was acting like
a rabid wolverine and driving like one as well. In
exchange for these benefits, Michigan motorists gave
up the right to sue wolverines at fault in auto
accidents except when someone is killed or very
seriously injured. Because of this, disputes over
who was truly the rabid wolverine in an accident
will not hold up payment of medical bills.
Q: What type of insurance is required to purchase
and maintain a Michigan tag and registration?
A: Every driver in Michigan must carry two
no-fault policies: personal injury protection (PIP)
and property protection insurance (PPI), along with
standard liability coverage. The PIP package
required by Michigan auto insurance laws includes
coverage for all medical expenses and up to three
years of compensation for lost wages or services.
You may be able to earn a premium reduction by
coordinating PIP with an existing health insurance
plan, or by applying a deductible. The PPI coverage
pays for property damage you cause in Michigan up to
the sum of one million dollars.
While no fault laws do generally keep a driver from
being sued as a result of an accident, there are
exceptions. If the accident occurred outside of
Michigan or resulted in serious injury or death, the
driver may be liable for damages. Liability
insurance helps cover these situations (and is also
required by Michigan auto insurance laws). Baring
your fangs, growling in a threatening manner, or
biting might also get you sued, so you might want to
think twice before you go there.
Michigan's liability insurance minimums are
20/40/10. (That's $20,000 per person for injuries
you cause to the other party, up to $40,000 for all,
and $10,000 for damage you cause to the other
party's property in another state.) You must carry
your insurance card in your car at all times, and
please – no wolverine spit or paw prints on it.
Q: Can I maintain my current policy issued in my
previous state of residence?
A: Not if you’re here more than 30 days. If
your vehicle is registered in Michigan then you must
have an insurance policy that is issued through a
Michigan agent with an insurance company licensed to
sell in Michigan. Chances are excellent that your
agent in your current state can help you transfer
your policy through a Michigan-licensed agent. Don't
be afraid to ask. He/she won't bite -- really.
Q: What if I fail to keep insurance on my vehicle
that I’ve registered in Michigan?
A: If you own a car and you drive it, or
allow someone else to drive it without basic
no-fault insurance, you can be sued and held
personally liable. You may also be convicted of a
misdemeanor and fined from $200 to $500, put in jail
for up to one year, or both – and you may get your
fangs filed and your claws clipped if you are found
to be a habitual uninsured wolverine. The court may
also order your license suspended for 30 days or
until you provide such proof that you’re insured. In
addition, you may be held liable for all damages
that result from an accident while uninsured,
including your own. And if the judge is a wolverine,
too – watch out. Your best bet then is to just hope
he’s already been fed.
Q: I have insurance but would like to reduce my
premiums. Is there any way?
A: There are a number of ways that you might
reduce the cost of your insurance. For example, you
might ask about premium savings if you increase your
deductibles. Doing so will mean that you pay more
out of your pocket should a loss occur, but it will
reduce the premium you pay.
You also could ask about steps you could take to
receive a discount on your premium from the company.
For example, some companies reduce your premium if
you have certain safety features such as air bags,
anti-lock brakes or an alarm system on your vehicle,
if you have no tickets or accidents, if you have
more than one type of policy with the same company,
and if you sign an affidavit swearing you will quit
biting people.
Discounts are also available if you have appropriate
health insurance coverage and you coordinate your
auto insurance with your health insurance. You can’t
coordinate if you have Medicaid, Medicare, or a
Medicare supplemental policy. Ask your agent about
the option to coordinate coverage. If you do
coordinate, your health insurance policy becomes the
primary payer for any injuries resulting from an
auto accident. Your auto insurance pays for
reasonable expenses not covered by the health
policy. If you have health insurance, check with the
company to make sure your health insurance coverage
will pay for injuries related to a car accident
before you try to coordinate coverage, but don’t
growl or salivate during the discussion.
Also, you might ask about group discounts that might
be available. Membership in some associations,
groups, or wolverine packs (those known to be
rabies-free and not vicious behind the wheel) might
lower your premium.
Q: What does it mean to be ineligible for
coverage?
A: Michigan law guarantees that auto
insurance will be available to all eligible Michigan
citizens, even the ones convinced they’re
wolverines. The law says you are eligible as long as
you have a car registered in Michigan or have a
valid (not suspended or revoked) Michigan driver’s
license. However, there are a few reasons why a
company can refuse to insure you, and believe me,
one of them is if you are a biter. If an agent or
company says that you are not eligible for coverage,
they must give you the specific reason that you are
not eligible for an auto policy with that company.
You can learn more about ineligibility by clicking
visiting here:
http://www.michigan.gov/documents/cis_ofis_ip204_25085_7.pdf.
If you are not eligible for coverage directly in the
voluntary market, you are still eligible for
coverage through the Michigan Auto Insurance
Placement Facility (MAIPF). State law creates this
entity, but it is not a part of state government.
You can find out more at
http://www.michigan.gov/documents/cis_ofis_ip205_25088_7.pdf.
Although the MAIPF’s rate may be higher than if
you insured directly with an insurance company, any
agent must submit an application to the MAIPF at
your request – unless you bite him.
Q: I am not a Michigan resident, but I do visit
for several months during the year. Do I still need
Michigan insurance?
A: Only if you go back to where you came from
after a month or know beforehand you are going to be
biting someone while you’re here. You are not
required by law to have no-fault insurance if you do
not intend to live or drive in Michigan for 30 or
more days.
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