Michigan Auto Insurance
When you purchase a vehicle, you will also need to buy auto insurance. The coverage is a contract between you and your insurance company that will protect you against financial loss if there is a vehicle collision. You pay a yearly premium, which is often split into monthly payments, with the reassurance that the insurance company will pay your losses for an accident.
Some auto insurance coverage options include liability coverage such as property damage, bodily injury, and uninsured/underinsured motorist, with other provisions available. Prices are individually assessed to suit your needs, and you can obtain a policy for six months or one year.
The Hartman Insurance Agency, Inc can help you decide the best auto insurance options for you.
Michigan Auto Insurance Law
The new Michigan auto reform law has brought many changes for drivers who now have options to choose from when they renew. It is best to work with your independent insurance agent. Hartman Insurance Agency, Inc has agents with training on the new law and can guide you on the best coverage options.
The new law is set to make car insurance more affordable in Michigan by providing more coverage options. Four significant changes took effect, including:
PIP: No-fault PIP is no longer required, and with these new changes, you can choose a coverage level instead. Some drivers can opt out of PIP altogether.
Bodily injury limits: the limit increase allows drivers to have a default minimum of $250,000 per person and $500,000 per accident, but limits can increase or decrease based on your needs. You must have a minimum amount of $50,000 per person and $100,000 per accident, but you can purchase more significant limits if you decide.
Driver savings: depending on your health insurance and PIP coverage selections, you can save between 10% and 100% of the PIP medical premium on your policy.
Rating prohibitions: premium rates are no longer contingent on occupation, gender, marital status, education, postal code, or home ownership.
These new changes were an adjustment for many agencies and drivers, but it allows us to help you get the coverage you need at an affordable rate. If you want more information on your Michigan auto insurance policy, speak to the agents at Hartman Insurance Agency, Inc.
Auto Insurance Available in Michigan
Aside from PIP and liability protection, you can also opt for roadside assistance if you break down and rental reimbursement if you need a temporary vehicle after a covered loss. Collision and comprehensive insurance are also options, but these coverages are mandatory if you are leasing or making payments on your car.
Liability insurance covers injuries, damage, and death you cause in an accident. You can also purchase PPI, which covers any damage you cause to another person’s property, like a garage or parked car, while driving your vehicle. If you cannot get auto insurance in Michigan through a traditional insurer, you can apply for coverage through Michigan Automobile Insurance Placement Facility.
Michigan Auto Insurance FAQs
What is PIP?
PIP coverage will cover your lost wages and medical bills when you or your household members are in a collision and suffer an injury. Your coverage options will determine the amount you will recover for your losses. Some limits reach $500,000, which is more than sufficient to cover damages in most collisions. You have six different PIP coverage options in Michigan:
- Up to $500,000 in coverage
- Up to $250,000 in coverage
- Up to $50,000 in coverage for drivers with Medicaid
- Up to $250,000 in coverage with PIP medical exclusions for drivers without Medicare health coverage.
- PIP medical opt-out if you have Medicare Parts A and B
What is Bodily Injury Coverage?
Another provision available in your insurance policy is bodily injury coverage, which pays your losses for which you are legally liable when you are at fault for a collision. You must purchase this coverage option and have the state minimums to comply with the law. Under the new Michigan auto insurance reform law, the minimum limits are $50,000 per person and $100,000 per accident.
What is Uninsured and Underinsured Motorist Coverage?
While all Michigan drivers must carry insurance, many do not, so when an accident occurs, there is no insurance to cover damages. In other cases, the losses exceed the at-fault driver’s insurance policy. You are not required to have this coverage on your policy, but it is advisable. Purchase what you can afford. If you are struck by an insured motorist who does not have enough coverage, you are left to pay for your expenses independently.
What is Comprehensive and Collision Coverage?
Collision coverage in Michigan reimburses you for damage to your car from a collision. The crash can happen with another vehicle or object, like a tree or guardrail. Collision coverage does not reimburse you for mechanical failure and normal wear and tear.
Comprehensive coverage protects you against theft and vehicle damage from something other than a collision, like hail, fire, weather, and other natural occurrences. Vandalism is also covered under comprehensive coverage as is glass breakage and collision with an animal.
What is Permissive Use (can I let my brother, friend, cousin drive my car)?
Auto insurance follows the vehicle in Michigan. Anyone who is licensed in the state can operate your vehicle. The one caveat is you must permit them to use your car. Permissive use means that the driver’s losses are covered if an accident occurs. Suppose you let your cousin, who does not reside with you, drive your vehicle to run an errand. Unfortunately, on their way to the store, they get into a collision. Under permissive use, the damage to your vehicle will be covered, provided you carry collision coverage on your policy. If your cousin is injured in the accident, the PIP on their own auto insurance policy will cover their medical costs.
When should I reduce coverage to Liability Only instead of Full Coverage?
If you have a loan on your vehicle, you must maintain full coverage. If you do not owe on the vehicle, the decision to reduce coverage to liability only is up to you. Typically, if your auto is in an accident and the repair cost exceeds 75% of the Kelley Blue Book value of the vehicle, the insurance company considers the vehicle a total loss.
Call Hartman Insurance Agency, Inc Today
All passenger vehicles, vans, and light trucks must have auto insurance policies in Michigan under the law. You must purchase your policy before you can register your vehicle. You can face misdemeanor charges and fines or license suspension if you do not have an auto insurance policy. Coverage options vary by driver and car; you must speak to an insurance agent who can find custom solutions.
Hartman Insurance Agency, Inc has years of experience and can guide you on the best coverage options. Call our office and speak to one of our agents to get a quote today.Contact Our Agency Today