Insurance Michigan: A Guide to Auto & Home Coverage
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Michigan insurance helps protect your financial interests in two of your largest assets: your home and your car. Without it, you could lose either of these costly assets and have no means to replace them. However, home and auto insurance in Michigan can be confusing. So, we created this in-depth guide on insurance in Michigan to help you make informed buying decisions.
Understanding Michigan's No-Fault Auto Insurance System
In 1973, Michigan passed a law changing it from a tort liability auto insurance state to a no-fault insurance state. This no-fault law means that if you’re injured in a car accident, your insurance company pays your medical expenses and other associated costs, helping to avoid lengthy court battles to determine fault.
This system theoretically gets you the money you need faster to cover expenses resulting from accidents. However, this system has complexities you need to understand, such as minimum coverage. The three minimum required coverages all insurers must offer are:
- Personal injury protection (PIP)
- Property protection insurance (PPI)
- Bodily injury and property damage liability coverage
What Is Personal Injury Protection (PIP) and Why It’s Essential
Michigan's PIP choice auto insurance regulation allows drivers to choose the level of PIP medical coverage they want. PIP kicks in before your medical insurance to cover injuries sustained by you, family members, and passengers in your vehicle during an accident. Some things it covers include:
- Medical expenses
- Mileage to medical appointments
- Loss of income
- Assistance for daily activities
- Attendant care
You have six PIP options:
- Unlimited coverage
- Up to $500,000 in coverage
- Up to $250,000 in coverage
- Up to $250,000 in coverage with medical exclusions for health insurance coverage
- Up to $50,000 in coverage
- Complete opt-out
Property Protection Insurance (PPI): What You Need to Know
PPI is required with all Michigan no-fault insurance. It covers up to $1 million in damages that your vehicle causes to other people’s property in the state. It covers damage to objects like buildings, fences, signs, and properly parked cars.
This policy does not cover property damages in another state. That is covered under your property damage liability coverage, which we’ll cover in the next section.
Minimum Liability Coverage Requirements in Michigan
Residual liability insurance, which includes bodily injury and property damage liability coverage, is mandatory in Michigan. However, not just any coverage will do. You must purchase car insurance in Michigan that meets specific coverage minimums. These minimums are:
- $50,000 for bodily injury per person
- $100,000 for total bodily injury per accident
- $10,000 for property damage outside of Michigan
These minimums can help protect you financially, but you may want to consider higher limits and additional coverages for more protection. Some common coverage options include:
- Collision coverage: Liability coverage only repairs the other party’s car in an accident. Collision coverage pays to repair your vehicle, regardless of who’s at fault for the accident.
- Comprehensive coverage: This pays you for automotive losses unrelated to a collision, such as fire or theft.
- Limited property damage liability insurance: Also known as “mini-tort,” this coverage pays up to $3,000 if you are found to be at least 50% at fault in an accident that damages an uninsured vehicle.
- Towing and rental coverage: This covers any towing or car rental fees from an auto accident.
- Uninsured and underinsured motorists coverage: This coverage pays for any bodily injuries you incur due to someone with insufficient insurance coverage causing an accident. It generally has limits of $20,000 per person per accident and $40,000 total for two or more people per accident. This coverage will not pay for repairs to your vehicle.
Review the insurance requirements of your state:
Home Insurance Considerations for Michigan Residents
Homeowners in Michigan should remain informed about their insurance needs. Some important factors to keep in mind when shopping for homeowners insurance in Michigan include:
- Weather-related risks: Michigan is prone to severe weather events, including snowstorms and flooding. When shopping for home insurance, you’ll want to consider your location and its susceptibility to these events. This is especially true with flooding, which many insurance policies exclude.
- Replacement cost: Verify that your home insurance policy covers the full cost of replacing your home in a total loss. Some policies pay only market value, which may not cover all the expenses.
How to Find Affordable Insurance in Michigan
Searching for the right insurance coverage in Michigan is tough enough, but you also must consider your budget. Follow these tips to simplify the process of finding cheap insurance in Michigan:
- Shop around: Don’t settle for one or just a few insurance quotes. Get as many as possible to compare insurance premiums from various companies.
- Bundle policies: Many insurance companies offer discounts for packaging coverages, such as auto and homeowners insurance.
- Ask for discounts: Insurance companies often offer a range of discounts, such as safe-driver and student discounts. It never hurts to ask what you may qualify for.
- Maintain a good credit score: Insurers consider credit scores when calculating premiums, so maintaining good credit can help lower your rates.
Get the Right Auto Insurance for Your Needs Today
Finding a great auto insurance plan is about balancing coverage and costs. Fortunately, EverQuote allows you to compare multiple insurance quotes and find cheap car insurance in Michigan that fits your coverage needs.