Is Auto Insurance in Michigan Mandatory?
Reader’s Question:
I have a drivers license in Michigan but my question is, do I need to get car insurance as well?
Maria
Detroit MI
According to Michigan car insurance laws, you are required to have no-fault insurance certificate in your car or carry it with you when you operate a vehicle. Failure to provide proof of car insurance when asked by a police officer will result to suspension of your drivers license. Until proof of car insurance is shown, your drivers license will remain suspended. You may also be required to prove that your car is insured for not less than 6 months and pay the fine of $50.
When you borrow a car, it is best to make sure that the car that you are driving is insured and you are listed on the policy to abide the Michigan car insurance laws. So if you live in a household with automobiles hat you occasionally or frequently drive, you will need to be listed on that policy you the coverage will be extended to you. If you so not have a car but want to be covered when you operate other people’s vehicles, you can get non owners insurance policy instead.
A non owners insurance policy provide liability protection to drivers who are at fault in an accident but do not own a car. Non-owners policies can typically include Liability, Medical Payments, and Uninsured/Underinsured Motorist coverages.
Cheap Liability Car Insurance Rates In Michigan
Reader’s Question:
I have to be on my own now. I used to be under my mom’s insurance policy. I wonder if I could ever get a cheap car insurance here in Michigan. What are the components of a basic liability only car insurance policy in Michigan?
Kate
Detroit, MI
You must first start with Michigan’s minimum car insurance requirements for you to get cheap car insurance in Michigan. All cars, except motorcycles and commercial motor vehicles, must carry no-fault insurance. You can’t actually register your car in Michigan without first having no-fault car insurance. This no-fault insurance provides car insurance coverage for you as a policyholder.
There are actually three kinds of car insurance coverage required by Michigan. They are personal injury protection (PIP), bodily and property damage (BI/PD) and property protection insurance (PPI). A basic car insurance policy in Michigan covers these three components.
In the event your car is damaged or stolen, none of these car insurance requirements provide insurance coverage. In Michigan, you should purchase comprehensive insurance coverage and collision insurance coverage in order to insure your car in the event of damage or theft. Comprehensive car insurance coverage provides coverage for theft of your car or its components and contents, while collision car insurance coverage provides coverage for damages to your car.
Michigan drivers are able to get cheap car insurance when they opt to purchase only the three components of a basic car insurance policy which are PIP, BIPD, and PPI car insurance coverage requirements. Comprehensive car insurance coverage and collision car insurance coverage are not normally required of Michigan drivers unless they have borrowed money to purchase their cars and their lenders require those coverages.
There are many other ways to get cheap car insurance without simply purchasing the minimum car insurance coverage requirements. You can shop around and ask any car insurance company or agent about the various discounts for good drivers, good students, driver education course completion, and multi-line policies that they offer and if you are eligible.
Auto Insurance in Michigan For SR22
Reader question:
I am supposed to get SR22 auto insurance. I’m not used to having insurance…which is kind of what got me into this mess in the first place, getting caught driving uninsured and stuff. So I guess I need to know more like…what insurance do I ask for?
Dillan
Detroit Michigan
Thanks for asking, Dillan.
SR22 auto insurance is no fault insurance, which makes it a little more complicated than the rest, but still not too difficult for a (belated) newcomer to understand. There are four types of no fault insurance: property damage liability, bodily injury liability, personal injury protection, and property protection. The first two cover any injuries or physical damages to the person in the other car or their property, while the second two are all about you. All are mandatory.
Personal injury protection is excellent in that, not only does it cover your medical bills, but it also pays you for any wages you lose while you are injured. As for property protection, its coverage limit is extremely high–one million dollars. Problem is that it only works in Michigan, so if you’re going to take your SR22 coverage out of state, you might need a plan B.
Cheers,
Fashun Guadarrama.
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