Be Sure You Have Enough Insurance While Driving in Michigan

When you get behind the wheel of a car, you take on a great deal of responsibility. Automobiles can cause a lot of damage. This is why Michigan requires that automobile owners carry car insurance. Michigan is a no-fault state, which means that the policy you own will pay you, regardless of who is at fault. Michigan requires that you carry insurance to cover instances of bodily injury, property damage, personal injury, and property protection.

Bodily Injury Coverage and Personal Injury Protection

If you get into an accident and someone is injured or killed, the bodily injury coverage will pay for the injury. You are required to get $20,000 in protection for injuries to one person, and a total of $40,000 for one accident. These are the minimum amounts required by the state. This may not be enough to take care of the costs of a major accident, so you may wish to consider adding to your current plan. Personal Injury Protection is also required. This will help pay for health care costs, including rehabilitation, lost wages, and funerals.

Property Damage Considerations

Michigan requires that its drivers obtain $10,000 in property damage insurance. This will protect you in case you damage property with your car. For example, if you run into your neighbor's fence, you will be covered. This type of coverage does not cover your own property, so if you back into your garage door, you will not be protected. It is easy to exceed $10,000 in property damage, so like bodily injury, you might want to get a higher limit.

Add-ons to Consider

Although Michigan does not have laws that require it, you may want to consider getting collision and comprehensive insurance. If you have an auto loan, your lender might insist that you get this. Collision will pay for damages to your car in case you get into an accident, up to the value of your car. Comprehensive is like collision, except it covers damages when you are not driving your car, such as if flooding damages your car, or if a tree falls on it. The reimbursement for these types of insurance only goes to the value of your car. If your car is worth $10,000 and it is totaled, your provider will give you $10,000, even if you still own $15,000 on your loan. You can purchase gap insurance to make up the difference. If you have an older car that is not valuable, it may not be cost effective to purchase these types of add-ons.

Failure to Stay Insured in Michigan

If you fail to stay insured in Michigan, you will not be able to renew your car registration. Your registration could also be canceled, and your driver's license could be suspended. In order to have your registration or license reinstated, you will have to get insured, provide proof of a policy, and pay a $50 fee. When you are driving, you need to keep proof that you are insured with you at all times. If you are in an accident or a police officer pulls you over, you will need to be able to prove that you meet the aforementioned requirements. Be sure to keep a copy of your certificate from your provider in your car.