Many states require no-fault car insurance and Michigan is one of them. All drivers in the state must carry no-fault car insurance and this type of insurance comes with many different features. If you’re new to the state, this type of insurance may be very different for you and it’s important to understand the requirements, along with the features.
Minimum Coverage Insurance in Michigan
All drivers in Michigan must carry at least 20/40/10 no-fault insurance. This means, your insurance covers up to $20,000 liability per person injured in an accident and up to $40,000 in total for bodily injuries. You also have $10,000 of coverage for property damage with minimum car insurance coverage in Michigan. All drivers have the option to choose more coverage, but they cannot carry less than 20/40/10.
Another requirement of drivers in Michigan is property damage. This is added to your Michigan policy automatically. This type of insurance will pay up to $1 million per accident, but doesn’t cover damages to vehicles unless they’re legally parked. It’s important to understand the coverage you choose and what will actually happen in an accident. Make sure to discuss actual accident scenarios with your insurance agent for a better understanding of how your coverage works.
Average Car Insurance Cost in Michigan and Other Stats
In the state of Michigan, drivers spend, on average between $1500-2500 per year for car insurance. Drivers choosing the optional coverage spend, on average, about $1000 per year for liability insurance. Michigan is the second most expensive state, and rates seem to be getting higher and higher every year.
A few others stats to consider when shopping for a vehicle and for car insurance include:
- Detroit is the most expensive city in Michigan to insure a vehicle.
- Going without insurance will cause your new policy to be much higher.
- Driving without insurance can get you a huge fine and could also cause you to be liable for any damages caused in an accident out of pocket.
No-Fault Comprehensive Coverage in Michigan
Not many states use no-fault car insurance and the coverage in Michigan is more comprehensive than other states are. This insurance system provides your family with unlimited medical benefits, wage loss benefits, rehabilitation benefits and many other coverage options. If you’re injured in an auto accident, these benefits help to protect you, no matter who’s to blame for the accident.
The one area of coverage you need to be careful of, in the event of an accident is the other coverage limits of your policy such as comprehensive and collision. Most important though would be carrying high enough liability limits to protect yourself properly. If you’re sued and you only carry 20/40/10 coverage, you might find yourself filing for bankruptcy in a hurry. An average auto accident can cause injuries in excess of $100,000 per person quickly. This means your $20,000 per person coverage will leave you personally responsible for the extra $80,000.
The average Michigan car insurance policy reccomendation is 100/300/100, which is much higher than the minimum coverage amounts required by law. However, if you want to make sure you’re fully covered, many financial experts recommend carrying at least 200/500/200 car insurance coverage. These same experts suggest an additional umbrella policy of $1 million in coverage added to your overall protection package.
Make sure you discuss all your options with your trusted insurance agent before you buy new coverage, switch your car insurance coverage or add additional coverage to an existing policy. You want the right protection and a good insurance agent can provide the best advice for your needs and your specific situation.