Michigan law requires a certain amount of car insurance. However, you might wonder what your coverage gets you and how you know if you need car insurance.
According to MCL 500.3101(1), you must purchase No-Fault insurance when a motor vehicle registers within the state of Michigan and you plan to drive it on a highway. How much insurance do you need to buy?
Property protection insurance (PPI)
Property Protection Insurance or PPI covers damage you inflict on tangible property. This includes buildings, parked cars, fences, etc. Michigan policies have a minimum requirement of one million dollars in coverage.
Personal injury protection (PIP)
If you suffer an injury in a car accident, PIP helps with medical expenses. No matter how the accident occurs, No-Fault PIP insurance will cover a certain amount of damages. It also kicks in to help with wages lost from missing work. In Michigan, most drivers must carry at least $250,000 in coverages.
Bodily injury liability (BI)
BI insurance helps with medical costs if you injure someone else in a car accident. The minimum for BI is $250,000 for one victim. However, you should consult with your attorney to decide what amount is right for your situation.
Property damage (PD)
If you get into an accident outside of Michigan, property damage insurance helps cover the costs. The minimum amount for PD is $10,000, but you may want to carry more. Insurance laws vary depending on which state you travel to, meaning you may be liable for more damages.
Do not drive any vehicle on Michigan highways without the proper insurance coverage. Remember, the minimum amounts might not be enough for your commuting needs. Consider your options carefully before you commit to one plan or another.