If registering and operating a motor vehicle the Great Lakes State of Michigan, knowing what to understand about auto insurance in Michigan as far as regulations and requirements (and also how to get a lower rate) can become important. Michigan is a state that has a mandatory insurance requirement, and it is a illegal to register and operate a motor vehicle without insurance.
It is also helpful to understand that Michigan is known as a "no-fault" state. Generally speaking, this means that all vehicles are covered by know-fault insurance that serves to indemnify the policy holder for the costs involved in the accident. In traditional automobile insurance, it is usually the person found at fault who must cover such costs as damage and injury.
There are many benefits to this particular kind of auto insurance, most attractively being that it tends to pay out claims extremely quickly and with a minimum of haggling between a policy holder and the company issuing a policy. Michigan requires that a policy issued within the state be carried even if the vehicle had once been registered elsewhere in another no-fault state.
Additionally, as with many other states, there is a certain minimum coverage level that must be in force at all times. In Michigan, this level is known as "20/40/10." At least $20,000 of personal injury protection (sometimes abbreviated PIP) per person injured in the accident must be maintained. Also, $40,000 of injury protection for all persons in the accident is required.
Lastly, at least $10,000 of property damage coverage must be a part of any policy issued in the state. Such coverage levels are reasonable enough, though most industry experts recommend far more coverage than this be carried because the costs involved in an accident -- both to property and to the people injured in it -- can be significant these days.
Please keep in mind that proof of auto insurance must be carried in the vehicle at all times. If such proof is not able to be presented upon request of a law enforcement officer or other person authorized to ask for it, suspension of driving privileges can result in the most extreme cases. At minimum, a significant monetary penalty will result if the certificate cannot be provided.
Auto insurance in Michigan is designed to provide coverage for the person, persons and vehicle involved in the accident. Known as "no-fault, " it has been successful for over 30 years in Michigan while not appreciably increasing costs. Check the Internet for insurance companies licensed to do business in the state, and then go with the company that can provide the best coverage for the best price.
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