Michigan Auto Insurance Quotes and Coverage Guide


Michigan Motor Vehicle Insurance Questions & Answers

Q: 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.

 

Check out our brand new,
extensive and complete
Auto Insurance Guide

 
 
 
 

Copyright © 2004-2008, AutoInsuranceCompendium.com