Michigan Auto Insurance Requirements

The state of Michigan, as well as other states, has certain requirements in order to legally drive a vehicle. As a no-fault state, Michigan requires additional coverage in order to protect each person in an accident, regardless of fault. Although there is a minimum liability policy law, additional options are recommended for all drivers, even if not required. Each insurance company may offer different rates and/or discounts, depending upon various factors for each person.

No Fault

The state of Michigan is a no-fault state, meaning that each individual's insurance company must pay their expenses, regardless of who is at fault during an accident. Every vehicle must have no-fault insurance coverage. However, no-fault insurance does not cover repair costs to your vehicle. Additional coverage, such as comprehensive and collision, while not necessary, is recommended.

Michigan Insurance Only

The insurance policy must be issued within the state of Michigan, regardless of whether an individual has an insurance policy from another no-fault state. The insurance card or proof of insurance must always be readily available when driving and when renewing the vehicle registration.

Residual Bodily Injury and Property Damage Liability

Residual Bodily Injury and Property Damage Liability is a state requirement to drive legally in Michigan. The minimum required coverage per individual is $20,000, and for multiple people the minimum is $40,000. $10,000 is the total coverage amount for property damage in states outside of Michigan.

Personal Injury Protection

Personal Injury Protection is mandatory in the state of Michigan, and it covers any medical costs due to bodily injuries sustained and/or incurred as a result of an accident. It may also pay for lost wages, survivor loss benefits and funeral expenses.

Personal Protection Insurance

Individuals must be covered in the case that others' property is damaged. Personal Protection Insurance will cover up to 1 million dollars in the state of Michigan, regardless of who is at fault.

Information Needed

The state of Michigan requires certain information before an automobile insurance policy can be issued. Insurance companies may need your social security number, Vehicle Identification Number, income, automobile accident history and where your vehicle will be driven to daily.

Prices

Several factors come into play when it comes to insurance costs. Make and model of vehicle, personal driving history, age, gender and location of driver all factor into the determination of insurance rates.