Car Insurance for Michigan Drivers
Finding great auto insurance at a low price in Michigan is easy to do when you use the resources found on our site. We can show you ways to not only find cheap rates but also show you the importance of having insurance for your vehicle and how to know what insurance you will need in the state of Michigan.
Michigan operates under a no-fault law for car insurance, which generally means no matter who caused the accident, both parties will be held responsible to repair their own vehicles and pay for those costs. In MI, however, the law is slightly more defined than this simple explanation. The no-fault law was originally designed to lower the number of drivers suing one another for damages, and due to the law there are very limited cases which allow a driver to sue another. In some situations where you do not have much insurance and are found to be less than 50% responsible for the accident, you can collect up to $500 under the state’s mini-tort law.
The tort law, which is observed by other states, is one where the driver at fault for the accident is financially responsible for the medical bills and property repairs of both parties. Michigan’s mini-tort law is based on the percentage of fault for both drivers. The driver who had little to no fault in the accident is given some help under this mini-tort law and won’t be completely responsible for someone else’s mistake. The mini-tort maximum claim amount is currently $500 but it could possibly rise to $1,000 in the future.
Driving without auto insurance in Michigan is a crime. To be more specific, anyone who has not claimed financial responsibility should not be operating a vehicle in any state. The penalties in Michigan for driving without insurance begin with fines of $200 to $500 with a possible suspension of the driver’s license and vehicle registration. The driver will need to show proof of insurance within a month to get their license and registration reinstated. (If you fall into this category we can help you get proof of insurance now.) Repeated offenses of not having insurance will lead to heavier fines and jail time.
Michigan drivers are required to have a minimum amount of insurance to legally operate a vehicle on public roads. Those requirements are listed below with a more detailed explanation:
• Bodily Injury Liability
• Property Damage Liability
• Property Protection Insurance
• Personal Injury Protection Medical
• Personal Injury Protection Work Loss
Bodily Injury Liability: This coverage must be purchased at a minimum price of $20,000 per person and $40,000 per accident. It does not pay for the medical expenses of the policyholder or members, but rather it covers those medical expenses of the other party but only up to the purchased amount. So, if the other party’s medical costs are over $40,000 combined, the policyholder is responsible to pay the remaining cost.
Property Damage Liability: This liability is where the mini-tort comes into play. This coverage pays for the damages that are done to the property as a result of the accident. In Michigan, drivers must have a minimum of $10,000 in property damage liability, which means the insurance carrier will cover up to this amount. Any remaining costs that exceed this amount will be the responsibility of either the policyholder or the other driver, depending on who is found to be most at fault for the accident.
Property Protection Insurance: This coverage obliges the insurance company to pay up to $1,000,000 for the damage your vehicle does to any fixed property, including buildings, fences, lampposts, and parked cars. It generally does not cover any other vehicle, such as moving vehicles at the time of the accident, only fixed or stationary objects.
Personal Injury Protection Medical: Personal injury protection (PIP) will help cover the medical expenses of you, members of your policy and/or passengers in your vehicle at the time of the crash. Depending on the insurer, the premium should not increase due to a PIP claim.
Personal Injury Protection Work Loss: PIP will also cover lost wages due to the accident up to a specified purchased amount. Depending on the state and insurer, this could also be limited to a certain time period.
PIP in other states will cover additional costs, so be sure to know what your carrier will provide to you in addition to medical and work loss. Some of these additions are funeral expenses of the insured, replacement services, and pedestrians that are struck by your vehicle.
Michigan car insurance rates are determined by using specific information about the driver(s) and vehicle(s) on the policy. This information includes the driver’s age, gender, how many speeding tickets and accidents they’ve been involved in or have caused, and their residential location. Then information regarding the vehicle needs to be given, such as make, model and year, its safety features, VIN number, how often it is driven and where it’s driven. All of these factors combine to make a level of risk, which is determined by the insurance company. This risk level is estimating the likelihood the applicant will need to file a claim and have repairs made. The level of risk corresponds to the price of the premium; the higher the level of risk assigned, the higher the premium will be.
If you want your rates to be cheap in Michigan, you should try out the following suggestions:
- Keep your driving record free from accidents and tickets
- Look for discounts offered by your insurer and qualify for as many as possible
- Drive an “insurance friendly” vehicle that won’t be too expensive to insure
- Take the bus or a cab as much as possible to limit your miles on the road
Of course, there are most ways than these to get lower rates, but start here for the quickest results.
Michigan is a beautiful state with plenty of reasons to get out and drive. Just make sure you are complying with the law by driving with at least the minimum amount of insurance required by the state. Great auto insurance in MI is not hard to find, especially when you take advantage of our site’s resources and capabilities to better your insurance situation.
The Best Car Insurance Companies?
It’s no joke that most drivers have at one point or another been in search of finding the best car insurance company. Expectations stay high while drivers seek the company that will give out the cheapest rates while providing top quality services and coverage. But when you line up and compare the findings of a group of drivers who have located “the best” insurer, you’ll notice there isn’t just one company listed but a few. Each of these companies are offering the policyholder what they need, and because we all have different needs and expectations according to our different situations, most drivers will deem different companies as being the best.
The truth is there isn’t just one excellent carrier out there. Many companies offer a variety of great services that are appealing to a number of drivers. Knowing that, it becomes easier to find what you’re looking for simply by charting a list of things you find to be important and want your insurance carrier to offer. There are a few specific factors that professionals use to qualify an insurance company as being the best. See if any of their recommendations match your requirements.
“The Best” Is Competitively Priced
It’s been said before, but it holds and remains true: no one wants to pay more for a product than necessary. If another company offers the same product, or in this case an auto insurance policy, for a cheaper price, the majority of customers will go to the company with the cheaper price. A competitive price is one that is about the same as what is being offered by other companies with the same product.
In auto insurance, it must be remembered that just because your neighbor is paying a certain low price for their insurance, there is no guarantee you will be given the same price if you switch to that company. Do you drive the same vehicle(s) and have the same driving history? Probably not. Premium costs are determined by a number of factors, including the driver’s age, gender and driving record. Also playing a part is the make, model and year of the car, as well as how often it’s driven and where it is locked and kept at night.
Another feature of the best auto insurance company relating to price is the number and type of discounts they offer to their customers. Not everyone will be able to qualify for all of the discounts, but most drivers should be eligible for at least one discount opportunity. These range from senior citizen discounts to student discounts and last for a certain period of time and require documentations to qualify.
“The Best” Offers The Coverage You Need
Do you know the type of coverage you need for your policy? The best auto insurance companies offer a wide variety of options that are available to all of their customers. Turning back to your individual list of insurance needs, what coverage do you prefer? Deciding on full coverage with comprehensive and collision coverage is an easy choice unless you have budget restrictions, which might limit the amount of coverage you purchase. Is medical coverage offered by your car insurance carrier? What depth is that coverage and how does it compare to what other companies are offering? Will the insurer replace your totaled or stolen vehicle? Also, if you have a young or new driver on your policy, you may need to purchase a higher amount of coverage to better protect your assets. These are some points to contemplate when comparing different coverage options that are offered by an insurer. While most companies tend to offer the same coverage by identifying it with the same name, check the terms or “fine print” to see where the differences are, if any.
“The Best” Has Great Customer Service
Customers tend to prefer a company more and refer them to others when they’ve had an enjoyable experience working with them. When representatives of the company are pleasant, polite and knowledgeable, customers will return. While it’s important to get these results when talking to the company about a question or something else that is minor, it becomes even more important that the reps stay pleasant, polite and knowledgeable when the time comes to handle a claim. No driver, or customer of any company for that matter, wants to deal with a staff member who has no respect or sympathy during a time of crisis. It would also be sad and add more stress if the rep had no idea what the claims process was or didn’t know how to work with the policyholder.
“The Best” Can Pay Their Own Bills
This should be a no brainer, but not many policyholders check out the financial status of a car insurance company before they sign up and purchase a policy. It’s essential that an insurer can pay their own expenses and be able to pay for the claims that are made. In order for the company to make a profit, they must have more money coming in (collecting premiums) than going out (expenses and claims). When companies experience a lull in profits, they will increase everyone’s premiums to see more money coming in and add to their profit margin. Imagine the situation of making a claim only to be told the company was going bankrupt and wouldn’t be able to pay for the damages even though you’ve been making your premium payments on time.
“The Best” Is Recognized By The State
State Motor Departments have a list of car insurance carriers within the state that they approve of. This list shows those companies that are legit and approved by the State, therefore they are probably safe to go with and use for your insurance needs. Usually on this list are also reports on the company, including past complaints by former customers. You can check out this list in most states throughout the country to get a better idea of who you would want to use.
As noted earlier, “the best” car insurance carrier is the one that will fit the specific needs of the policyholder. If you’re not sure of your exact needs, list them along with ways your needs will be met.You can start by using our comparison tool located below or above to find the best auto insurance quotes near you.
