Although most consider the auto policy to be a generic "One-size-fits-all policy", it is far from it! We work with you and educate you on what the auto policy can do for you. Along the way, we also focus on identifying all the insurance discounts you are eligible for! Reading through this page will help you participate in the customization of your auto policy and help you make important decisions regarding what's covered and how much it's covered for.
Overview of the Auto Policy
Auto policies in Michigan are perhaps the "best" auto policies you can get in the United States because it pays unlimited medical expenses if you are injured in a vehicle! It is a myth that Michigan No-Fault auto policies are more expensive than any other state's auto policies. There are 11 other states with no-fault laws. National price rankings for all 50 states place the Michigan auto policy near the middle of the pack.
Michigan has adopted a "no-fault" insurance program in an effort to speed up claim payments and reduce courtroom costs. If you want your vehicle covered for physical damage, you need to purchase the coverage yourself -- it doesn't come from the person who hit you!
There are three coverages required by law in Michigan:
Personal Injury Protection (PIP) Residual Liability Property Protection
Other auto coverages you can purchase include:
Uninsured/Underinsured motorists Damage to your vehicle (comprehensive and collision) Towing and car rental if your vehicle becomes disabled
Personal Injury Protection (PIP)
Benefits are paid for treatment of injuries to the driver and passengers of the policyholder's car and applies to accidents occurring throughout the US and Canada. PIP can cover:
All reasonable and necessary medical expenses Up to three years of lost wages. Higher benefit limits may be purchased. Up to $20 per day, for a maximum of three years, for "replacement services" for services the injured person cannot perform. Funeral and burial expense benefits.
This provides protection if you are sued or legally responsible:
In accidents involving death, serious impairment of body function or permanent, serious disfigurement. In accidents occurring outside of Michigan, for property damage and bodily injury.
This provides coverage for damage caused by your car to property of others (except moving vehicles), regardless of fault.
Coverage is provided up to $1 million maximum. Vehicles are excluded from coverage unless properly parked. Property Protection does not apply to accidents occurring outside the state of Michigan.
In scenarios where you have sued another party or another party is legally responsible for your death, serious impairment of body function or permanent, serious disfigurement -- this will trigger the party's Residual Liability coverage. However, if the other party has no insurance (uninsured) or Residual Liability limits that are not high enough to compensate you (underinsured), this coverage pays you.
Damage to Your Vehicle (Collision and Comprehensive)
Collision covers damages to your vehicle, while it is being driven, from a collision with another car, a light post, fire hydrant, etc. Comprehensive covers damages to your vehicle that are not covered by collision. Covered risks include fire, theft, falling objects, missiles, explosion, earthquake, flood, riot and civil commotion. You can determine what deductible applies to each vehicle for both collision and comprehensive coverage.
Towing and Car Rental
If your vehicle becomes disabled by a loss covered by your collision or comprehensive coverage, your policy could pay for your towing and car rental if your vehicle is in the shop being repaired. A limit may apply to both of these coverages.