What Does Auto Insurance Cover?

Drive a car? Auto insurance is a requirement in Michigan. The minimum requirements are:

• $50,000 per person and $100,000 per accident in bodily injury liability.
• $10,000 per accident in property damage liability.
• $1 million in property protection insurance (PPI) coverage.

While these are the absolute minimum coverages, there are other policies available. Most cover bodily injury liability, personal injury protection, property damage liability, collision, and comprehensive damages. Uninsured/underinsured motorist policies are also available. Note that these types of coverage are often priced separately, so limits may vary.

Make sure you know what coverages you have and which ones you need. Here’s a look at each type of auto insurance and what they cover.

Bodily Injury Liability

Bodily injury liability coverage applies to injuries that you cause to someone else. You and family members listed on the policy are also covered when driving someone else’s car. If you are involved in a serious accident, you may be sued for a large sum of money, so it’s recommended that you buy enough coverage to protect assets such as your home and savings.

Medical Payments/Personal Injury Protection (PIP)

This coverage pays for injuries to the policyholder and any resident relatives. In some cases, it will cover medical payments, lost wages, loss of services, and funeral costs.

Property Damage Liability

This coverage pays for damage you cause to someone else’s property. This typically refers to damage to someone else’s car, but it also includes damage to lamp posts, telephone poles, fences, buildings, or other structures you hit in an accident.

Collision

Collision coverage pays for damage to your car caused by a collision with another car, an object, or potholes. Even if you are at fault for the accident, your collision coverage will reimburse you for repair costs minus the deductible.

Comprehensive

This coverage reimburses you for crashes caused by deer and other animals. It also covers

loss due to theft or damage caused by fire, windstorm, hail, flood, falling objects, explosion, earthquake, or vandalism. In addition, comprehensive coverage will pay to repair or replace your windshield.

Uninsured and Underinsured Motorist

This is a good coverage to have, given that more than 25% of drivers in Michigan are uninsured. This is the second-highest percentage in the United States. Underinsured motorist coverage reimburses you or other drivers in your household if one of you is hit by an uninsured driver or a driver who does not have adequate insurance. This coverage also protects you if you are a victim of a hit-and-run accident. If you are a pedestrian hit by an uninsured or underinsured motorist, all your damages will be covered if you have this policy.

Contact Our Michigan Auto Insurance Agency Today

There are many types of insurance available to cover your vehicle. Make sure you have adequate auto insurance to meet your needs.

An insurance agent from Hartman Insurance Agency can help you make the right decisions about auto insurance. Contact us today to get a quote. Give us a call at (734) 999-4190 or fill out the online form.