Having a quality auto insurance policy is imperative to make sure that you have financial coverage and support if you are involved in an accident. However, the car insurance market can be very confusing with numerous options and agents trying to up-sell you every chance they get. In addition, Michigan has complex statutes regarding the type of coverage you must have to avoid violating the law. For these reasons, it is not surprising that many drivers in Michigan have many questions regarding insurance coverage. The following are helpful explanations of types of insurance in Michigan for your reference:
No-Fault insurance
The law in Michigan1 requires you to carry no-fault insurance if you own a vehicle. If you drive without at least having a no-fault policy, you may be facing penalties if you are pulled over or in an accident. No-fault insurance means that your own insurance company will cover certain losses if you are in an accident—whether or not you were to blame for the accident. Specifically, no-fault insurance will cover your medical expenses for injuries you sustain in a collision, up to 85 percent of wages you lost due to your injuries, and other injury-related costs including home health care, replacement services, disability modifications, and more. No-fault insurance will also cover damage you caused to property (other than vehicles) and for a certain amount in the event you are sued due to causing serious injury or death of another person in the collision. No-fault insurance applies to everyone in your household.
Furthermore, if another person was seriously injured, disfigured, or killed in your accident and you are found to be at fault, your no-fault insurance will cover a certain amount of the accident victim's losses, depending on which policy you choose.
Collision Coverage
Because no-fault insurance does not cover repairs to your vehicle, you may want to consider buying collision coverage. The are various levels of collision coverage: some only cover damage if you were not at fault, while others require you to pay a deductible before coverage begins. Often, the financial institution that issued your car loan will require you to have some type of collision coverage, though this type of coverage may not be worth it if your car is older and owned outright.
Uninsured Motorist Coverage and Underinsured Motorist Coverage
Though every driver in Michigan is required to have no-fault insurance, many people violate the law and fail to maintain a policy. Additionally, many people only purchase the bare minimum policy required by law. If you suffer serious injuries and your losses exceed the policy limits of the negligent party, having uninsured or under-insured motorist coverage can help cover the rest of your expenses.
The above are only some examples of insurance options in Michigan and every type of coverage has additional complications not covered here. However, if you have any questions regarding your insurance options or how to decide on a policy, the experienced Michigan car accident attorneys at Michigan Injury Lawyers can assist you. Please call us at 313-438-4357 with questions today.
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