What Are The Minimum Car Insurance Requirements in Michigan?
Reader’s Question:
I will be moving to Michigan soon and am planning to buy a car there. What are the minimum insurance requirements in that state?
Patricia
Ann Arbor, MI
Car insurance coverage is mandatory in all states, and Michigan is not an exception. This state adopted the no-fault law. This essentially means that in the event of an untoward car accident, regardless of whose fault it was, the individuals involved will be assisted by his or her own car insurance company when it comes to paying for medical care if bodily injuries were sustained.
This is the reason Michigan obligates its motorists to carry Personal Injury Protection insurance. This coverage not only assists in medical expenses but also for loss of wages, or if needed, funeral expenses following an accident. PIP coverage may also extend to other passengers in the vehicle unless otherwise stated in the car insurance policy. If a driver has good health insurance coverage, then he or she can decide to obtain only the minimum PIP coverage.
Liability policy is another requirement in Michigan. This covers for medical and repairs cost following an accident caused by the insured. A minimum of $20,000 is allotted for medical care for one passenger, and up to a total of $40,000 for all the passengers’ treatment of bodily injuries. Meanwhile, an amount up to $10,000 will be available to assist in costs incurred for repairs to public property and/or the victim’s vehicle. Any amount remaining will be shouldered by the insured if his minimum liability has been used up.
Tips On Filing a Car Insurance Claim in Michigan
Reader’s Question:
I was rear ended in Livonia, Michigan (where I also live) last week it was not really my fault. I do not have collision coverage and I suffered neck and back pains and my vehicle has been totaled. What should I do now? The other driver’s insurance provider is offering to pay me only $500 for the damages. Is this all I can get?
Gary
Livonia, MI
The same thing happened to me a few years ago. We had to go into a settlement negotiation. Here is what you need to remember:
1) Negotiate. Do not take their initial offer to pay for the damages. In my my case, they end up paying for doctor, and all medical bills.
2) Do not take the $500 amount that is being offered to you yet. Insurance providers will try to settle immediately, by offering a lump sum and having you shoulder any future damages.
3) It may be a rear end collision that would seem to have not much damages but it is possible that the injuries or damages will take about a week or two to become evident. In my case it took about a week before I felt back pain that lingered for two months, missed days of work and had to go through therapies. You must wait until you have a good idea of how much damage becomes evident like I said.
4) Make sure you document everything including all the medical expenses specific details of your pain you are experiencing. This would help you strengthen your position when you file for car insurance claim..
5) You probably should consider seeking legal help and ask an attorney before you negotiate a settlement, if this develops into a significant amount of money. Get advise from a lawyer on how to approach the negotiation.
6) Lastly speak to your own car insurance carrier in Livonia, Michigan, who may act on your behalf during negotiations.
Car Accident Without A Drivers License in Michigan
Reader’s Question:
I was a passenger involved in a car accident. I do not have a driver’s license nor own a car so I don’t have insurance and am curious to know who pays my lost wages as well as my outrageous medical expenses?
Jerry
Livonia, MI
I’m sorry to hear about your accident Gerry. To figure out what insurance company is responsible for your medical expenses and lost wages will depend on what state you reside and the type of insurance they require motorists to carry. The main differences depends if your state is a no-fault state or not. Personal Injury Protection (PIP) is generally used in a no-fault state for a situation like this.
Since you live in Michigan, which is a no-fault state, if you are injured as a passenger in a car crash typically your own car insurance would pay your benefits. But in a situation like yours where you do not have car insurance you would collect the benefits from the insurance company that covered any vehicle owned by a relative that you live with. If you did not have coverage that way either, then you would have to collect from the insurance company covering the car or driver in which you were riding.
Since you are in a state without no-fault laws you typically would be able to put your injury claims through the at-fault person’s bodily injury liability policy. If you want to find out your state’s insurance laws, you can contact your state’s insurance regulatory body.
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