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.
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.
What Is The Minimum Car Insurance Requirement in Michigan?
Reader’s Question:
Is there any state by state minimum car insurance requirements? I live in Michigan.
Ruth
Battle Creek, MI
Yes there are, Ruth.
You need to understand that every state requires all drivers to carry a minimum amount of liability insurance on their cars. Such minimums are usually expressed in 3-part numbers. Say, in Michigan, that’s 20/40/10. The first two numbers, 20 and 40, normally refers to bodily injury liability insurance, the 1st number being the per person limit, while the 2nd as the per accident limit. The 3rd number is usually for property damage liability coverage. So based on Michigan law of 20/40/10, if you have a minimum insurance required, then you would normally have $20,000 for bodily injury coverage per person injured with $40,000 maximum per accident, and $10,000 as property damage liability insurance.
It may or may not be good to carry additional coverage as these are the only legal minimum requirements. Although, carrying more is also a good idea. Be aware though that these minimums will only cover damage to other motorists 3rd party property and not for your own. You have to get comprehensive coverage for your own coverage like medical, collision, and other-than-collision coverage.
With regard to state minimums, Alaska and Maine are the ones which have highest at 50/100 and at least $25,000 for property damage while Mississippi has the lowest minimums of 10/20/5.
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