Michigan Auto Insurance, Michigan Car Insurance, Michigan Automobile Insurance

Michigan auto insurance is mandatory for every vehicle in the state. Michigan’s Essential Insurance Act of 1979 requires ‘no-fault’ auto insurance for every vehicle owner. The law also states that insurance companies can decide the policy price to respond to the market conditions.

Michigan Auto Insurance: No-Fault Cover

Every car owner is required to buy no-fault insurance to be able to register a vehicle in Michigan. This policy pays for damages incurred due to an accident for which the insured car is not responsible. A basic no-fault insurance policy has three different covers:

Personal injury protection: This plan covers medical treatment if the policyholder suffers bodily injury. It also pays for financial loss due to an injury. A personal injury protection plan also offers death benefits, which pay an equivalent amount of three years’ income to the policyholder’s family.

Property protection insurance: This plan offers a maximum financial cover of $1 million for damage caused to another person’s property by an insured car.

Residual liability insurance: This plan provides cover against liabilities for damage caused to another person. It prevents legal proceedings against the policyholder after an auto accident. However, this part of the policy has exclusions, such as accident with a vehicle insured with another state and a Michigan resident causing an accident in another US state.

Apart from basic Michigan auto insurance, an individual can buy advanced policies for extended cover. Advanced Michigan auto insurance policies include comprehensive cover, collision insurance or uninsured motorists’ coverage.

Michigan Auto Insurance Eligibility

All the resident of the state are eligible for Michigan auto insurance. However, the insurance company preserves the right to deny insurance if:

The individual is not required to have Michigan auto insurance.

The license is suspended or revoked.

The individual has a previous record of making false claims or defaulting on premiums repeatedly.

The individual has a serious traffic violation record.

The individual has caused the death of or serious injury to another person in an auto accident

The person does not fulfill the policy requirements of the specific insurance policy.

The Michigan Office of Financial and Insurance Regulation is the state authority that regulates insurance laws. It also devises effective mechanisms to address public grievances associated with insurance claims.