Why You Need Property and Bodily Injury Protection When Buying Auto Insurance in Michigan
When it comes to auto insurance, Michigan has a unique type of policy that you should not miss. Property protection insurance covers up to $1 million per crash but usually only covers stationary objects, not cars. Bodily injury and property damage, or “residual liability” insurance, covers other drivers and their property in case of a crash. Having this type of policy is essential to avoid being caught driving without insurance, which will result in the suspension of your driver’s license.
Property protection insurance
You may be wondering if you need Property protection insurance when buying Michigan auto coverage. This type of insurance is unique to Michigan and will pay out up to $1 million in damage to property caused by a car crash. The type of property it covers is not the car itself, but rather the parked vehicle or fixed object. In Michigan, you need this type of insurance because property damage liability coverage covers the rest of the damages, including damages to other cars.
Michigan auto insurance policies are required to include Property Protection Insurance, which will pay for damages to fixed objects. These are things like fences, road signs, and the like. In case of an accident, this type of coverage pays for these types of damages. This type of coverage does not cover the other vehicle, but it can be a good idea if you plan on leaving the car unattended. You should also have a Personal Injury Protection (PIP) policy in case you cause someone to get hurt.
Personal injury protection
Personal injury protection is an important feature of many Michigan auto insurance policies. Personal injury protection is designed to cover the cost of medical expenses in an auto accident, regardless of fault. Prior to Public Acts 21 and 22, PIP coverage was required of all Michigan members. But now, Michigan auto insurance companies must give you a choice between Med-pay and PIP. Read on to learn more about PIP and its benefits. We’ve provided examples of both below.
Personal injury protection is mandatory in Michigan. You must have a minimum of $250,000 in PIP coverage. If you have Medicaid or Medicare Part A coverage, you may be able to opt out of PIP insurance altogether and choose $50,000 in PIP if other household members have other coverage. Michigan also requires you to carry residual liability insurance, which will protect you if the other driver is sued. Purchasing these policies can protect you from these penalties and make it easier to drive safely.
There are several types of collision insurance in Michigan. These policies come with different types of deductibles. For instance, limited collision coverage pays only if the other driver is at fault in an accident. A broad form of collision coverage pays no matter who is at fault in a crash. Michigan also requires that you pay a deductible if you make a claim for damages to another person’s property. Regardless of which type of coverage you choose, you should understand how the Michigan collision insurance system works.
The most common type of collision coverage is broad form collision. Under broad form collision, customers are only responsible for the deductible if they are at fault in a collision. If the customer is at fault, a $500 deductible covers the entire cost of repairs. The deductible applies to all types of collision losses, including accidents where you are not at fault. You must have a deductible in order to qualify for the policy, so you need to carefully consider your needs.
The suspension of your driver’s license for driving without insurance
Depending on the severity of the incident, driving without car insurance in Michigan can result in legal penalties. The penalties for not having insurance may include financial obligations to the other driver’s insurance company, medical expenses, and a suspended license. Depending on the type of offense, you may be subject to both jail and fines of up to $500. Read on to learn more about the penalties for driving without insurance in Michigan.
As a result of the rising costs of court fines and license suspensions, countless people are now seeking help to protect themselves. The Detroit Justice Center has published a report on the escalating costs of low-level traffic misdemeanors. In June, a staff attorney from the organization testified to the House Judiciary Committee that despite the high costs, her clients do not disregard the law.