Michigan Car Insurance: The 1,2,3s of Car Insurance Requirements for Residents

Before shopping for a car insurance policy every consumer should take the time to find out their individual state’s requirements. Michigan residents can contact the Michigan Department of Financial and Insurance Services located in Lansing by calling (517) 373-1820 and asking to be transferred to the Department of FIS.

1. Michigan is a no fault state. This means that in the event of an accident each individual driver will have their expenses covered by their own insurance company, regardless of which was responsible for the accident.
2. Because MI is a no fault state all drivers are responsible for carrying a PIP insurance policy. PIP stands for Personal Injury Protection, and provides assistance not only with medical expenses but for lost wages and, if necessary, funeral expenses. PIP may also extend to other passengers in the vehicle at the time of an accident; however, consumers should check with their insurance company first before making such an assumption. If a driver is covered by a good health insurance policy they may elect to purchase only the minimum amount of PIP coverage.
3. While it is not required it is recommended that all drivers carry comprehensive and collision insurance. In the event that a driver is responsible for an accident they will be left to foot the bill for their own repair costs unless they carry collision coverage. Collision will pay for repairs up to the Kelley Blue Book value of the car, and if costs are found to be in excess of this amount the owner will be awarded the cash value of their car and the vehicle will be totaled.
4. It is required that all MI vehicles be covered under a liability policy, since there are exceptions to the no fault rule. Liability will pay for the injuries suffered by the person and vehicle who were the victims of an accident caused by the insured up to and including the amounts of

• twenty thousand dollars for the medical expenses of a single driver,
• forty thousand dollars for the combined medical expenses of the driver and all of their passengers, and
• ten thousand dollars for property damages, including public property and the victim’s vehicle.

1. Also suggested is the purchase of uninsured motorist coverage. This will pay for medical expenses and vehicle repairs necessitated by an accident caused by a driver who either does not possess insurance or whose insurance is inadequate. Uninsured motorist coverage will also provide aid to those drivers who find themselves the victims of a hit and run.