Michigan Auto Insurance - (MI)

When it comes to insuring automobiles, as of 1973 the state of Michigan is a no-fault state, which means that all registered vehicles and their drivers must carry no-fault insurance in order to be in compliance with state laws. No fault auto insurance is insurance that pays for your medical expenses as well as lost wages if you are in an accident. It can also cover damage to the other vehicle or property with which you are in an accident.

The beauty of no-fault insurance is that compensation for accidents is paid out quickly and without a lot of haggling. Medical expenses, lost wages and damages are taken care of regardless of who caused the accident. This system has been in place for more than thirty years and has not caused a significant increase in costs.

Required Coverage Types

In Michigan, you must use a policy issued within the state, even if you come from another no-fault insurance state. Mandated coverage includes property damage and bodily injury, as well as PIP (personal injury protection), as well as property protection insurance.

Personal Injury Protection (PIP) will cover you if you are driving or riding in a vehicle in any state in the U.S. as well as in Canada. It also covers you if you are a pedestrian in an accident. Unlike other states where there is a set minimum amount of liability insurance that you must cover, this insurance covers all injuries and damages from an accident after your deductible - which you can adjust to control the cost of the insurance. The PIP will pay up to $1,000,000 maximum per accident, excluding vehicles unless they are legally parked.

Residual Liability Insurance

This insurance is more of an extra, or umbrella policy to provide extra protection in case you are sued in an accident under special circumstances. Minimum coverage amounts for this type of insurance are:

• $20,000 per person injured
• $40,000 total injuries for persons
• $10,000 for property damage

This insurance will protect you if you are held legally liable in an accident that involves the death of another person, or permanent, serious disfigurement or impairment of a bodily function. It will also provide coverage for damages that exceed your PIP coverage and coverage for accidents that happen outside the state of Michigan.

Keep in mind that you must carry proof of insurance in your vehicle at all times or risk having your license suspended if you are stopped and can not provide proof.

Other Coverage Options

These are the minimum insurance amounts and types required by state law in Michigan. There are other types of insurance that you can purchase in order to provide additional protection for yourself including collision coverage which pays for repairs to your car if it is damaged in an accident, comprehensive insurance which pays for damage to your vehicle that may occur in non-accident situations or other incidents like theft.

Department Of Michigan (MI) State Government That Regulates Auto Insurance:

How To Contact Directly:
Michigan Department of auto insurance
P.O. Box 30220
Lansing, MI 48909
Phone: 1-517-373-0220

Michigan (MI) Mandatory Auto Insurance Minimums

• Liability: 20/40/10 = Bodily Injury Individual/Bodily Injury Total Per Accident/Property Damage
• Other Mandatory Insurance: Personal Injury Protection — No Fault State
• Regulations Regarding Proof of Insurance: Proof Required - When Obtaining Registration
• Penalties For Not Carrying Mandatory Insurance: First Offense = Fine of up to $500 or Jail Term of up to One Year

How To File A Complaint About An Insurer:

Official State of Michigan website
Online Form

Or Contact:
Department of Labor & Economic Growth
Office of Financial & Insurance Services
PO Box 30220
Lansing MI 48909
Phone Toll Free: 1-877-999-6442