Auto Insurance-Michigan IS Different

Confused about your Auto Insurance?  Michigan IS Different!

Here is a brief explanation of available coverages for you to consider regarding decisions on your auto insurance in Michigan

Mandatory Coverages

  • Bodily Injury Covers payments you are legally liable to pay for injury you cause to others. 
  • Property Damage Covers payments you are legally liable to pay for damage you cause to other’s property.
  • Property Protection Covers up to $1,000,000 for damage you cause to other’s property in the State of Michigan.      
  • Personal Injury Protection (PIP) The broadest no-fault medical coverage in the U.S.; PIP provides payment for injury to you or your household members including unlimited lifetime disability.
  • Excess/Coordinated or Primary/Full PIP An important consideration with PIP coverage is whether your policy is listed as Excess or Primary. Excess PIP  indicates you are covered by another medical policy that covers auto related accidents first. If this policy is not applicable, a deductible will apply.
  • MCCA Michigan Catastrophic Claims Association Contribution to state fund for medical expenses and disability as a result of an auto accident related catastrophic loss.

 Optional Coverages

  • Limited Property Damage Mini-tort Covers up to $1000 for damage you cause to another vehicle.
  • Uninsured Motorists Covers you when someone without insurance is legally responsible for your injuries.  
  • Underinsured Motorists Covers you when someone with low insurance limits is legally responsible for your injuries.      
  • Comprehensive Covers your vehicle for damage NOT from a collision. Example: fire, theft, wind, vandalism, etc.  
  •  Collision There are 3 types for you to choose from:

Broad If you are less than 50% at fault for an accident, (as shown in the police report) you do not pay deductible.
Standard/Basic You always pay your collision deductible.
Limited NO collision coverage unless someone else is more than 50% at fault (as shown in police report)

  •  Rental Reimbursement Covers specified amount to rent a vehicle while yours is being repaired due to a covered loss.     
  • Towing Covers specified amount in the event you need towing or road service.    
  •  Lease/Loan Gap Provides payment for the difference between the amount you owe the loan/lease company and actual cash value of a covered vehicle in the event of a total loss. This is important as many times the amount of the loan or lease is much higher than the value of the vehicle.  
  • Additional Endorsement for Rental Car This provides for gaps in coverage for a car you rent.

 

 

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