Michigan Car Insurance
Michigan car insurance is in place to protect mainly you.
| State Regulator Information | 877-999-6442 | www.michigan.gov/lara |
| Insurance Premium | Avg. Annual Premium: $ 2,551 | National Average: $1,503 |
| Mandatory Car Insurance Coverage | Bodily Injury Liability:$20k/40k Property Damage Liability: $10k |
Michigan tries to simplify insurance through no-fault laws.
Michigan car insurance requirements are based on Michigan being a no-fault state. This means that you are required to carry insurance more to protect you in the event you are injured in an accident and not the other party. It also means that you will have coverage to pay for medical bills regardless of who caused the accident.
Required Michigan Car Insurance
Michigan car insurance has three required coverages that you must purchase to be able to drive and register your vehicle in the state.
• Personal Injury Protection
• Property Protection
• Residual Bodily Injury and Property Damage Liability Insurance
The personal injury protection coverage pays for your medical expenses in the event that you are injured in an accident. It also provides coverage for a long list of other expenses that you may have, including lost wages.
Property protection pays for damages you may create with your vehicle, to property that is not yours. It provides up to $1 million in coverage and covers everything except damages you may cause to another person’s vehicle, unless that vehicle is parked.
Residual BI/PD Michigan Car Insurance
Residual bodily injury and property damage liability insurance may seem odd if people pay for their own medical expenses and damages to their vehicles. This residual coverage is really a backup insurance in the event of extreme circumstances, as it only kicks in under very specific events.
The minimum you are allowed to carry for this coverage is 20/40/10 and it is only used when you are being sued for one of the allowable events under Michigan car insurance law.
Few Lawsuits allowed Under Michigan Car Insurance
With how Michigan car insurance is set up in the state, drivers are not allowed to sue each other. All medical bills are taken care of through your own car insurance; but as we talked about above, there are a few circumstances that lawsuits are allowed.
These lawsuit allowable events are the events that would fall under your residual BI/PD coverage:
• You can be sued up to $500 if you are 50% or more at fault for an accident and the other person has damage to their car that is not covered by insurance.
• You get into an accident outside of Michigan.
• You have an accident with a driver that is not a Michigan resident and the accident happened in Michigan.
• You kill or seriously injure another person with your vehicle.
Penalties for not Having Michigan Car Insurance
Michigan car insurance is not optional and comes with stiff penalties for not having it. If you are caught without the required car insurance coverage in Michigan you will be charged with a misdemeanor. You will also be fined up to $500 or get to spend a year in jail or even be penalized with both.
This is just the tip of the iceberg as there may be other fines and fees that you may be subject to after the initial penalties for driving without Michigan car insurance. You can also have your license suspended and not be allowed to renew your vehicle registration without purchasing a pre-paid Michigan car insurance policy that cannot be cancelled.
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