Michigan Car Insurance Laws & Requirements - The 4 types of mandatory No-Fault coverage you must have by law and how they apply when borrowing or leasing.
The Michigan car insurance laws and requirements state that under certain circumstances, you must purchase a No-Fault insurance policy for your vehicle that provides the following four types of coverage: Personal Injury Protection, Property Protection Insurance, Residual Bodily Injury Liability and Property Damage.
Personal Injury Protection (PIP): This coverage provides what are commonly known as “No-Fault PIP Benefits.” If you’re seriously injured in an auto accident, No-Fault PIP benefits provide reimbursement for medical expenses, a percentage of your lost wages, attendant care (in-home nursing services) and replacement services (help with household duties).
Property Protection Insurance (PPI): This coverage covers damage you cause to “tangible property” such parked cars or other property (i.e. buildings, fences, trees, lawns, etc.) within the state of Michigan. Every Michigan auto policy has a mandatory $1 Million of PPI coverage.
Residual Bodily Injury Liability (BI): This coverage protects you in the event you cause an auto accident that resulted in serious injuries to someone else. The law requires minimum bodily injury liability coverage limits of $250,000 per person and $500,000 per accident, but drivers may choose to purchase lower limits of $50,000 and $100,000. However, our attorneys recommend that you never carry less than $500,000 per person and $1,000,000 per accident to fully protect yourself. The difference is usually only a few dollars more.
Property Damage (PD): This coverage protects you in the event you cause damage to another person’s vehicle outside the state of Michigan. The law requires a minimum of $10,000 of PD coverage. However, our attorneys recommend that you carry a minimum of $100,000. For example, if you travel to Ohio, which is a tort state (Michigan is a No-Fault state) and you cause a crash, you would be responsible for all of the other driver’s car damage.
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