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Crash Course on Michigan No Fault Insurance…Lower Your Bill

Posted on: March 17th, 2010 by admin

If you are in the process of shopping or looking to buy your first Michigan no fault insurance policy then you have come to the right place.  The basics of you Michigan automobile insurance policy are liability coverage and coverage for damage to your vehicle in all forms.  These are generally the two most expensive components of your policy.  In Michigan the state minimum requirements for liability coverage are 20/40/10.  The 20 stands for $20,000 per person, the 40 stands for $40,000 per incident and 10 stands for $10,000 in property damage.   These are the absolute bare minimum requirements in the state of Michigan.  If you are caught driving without at least these coverages you are breaking the law.  You must carry an active Michigan no fault insurance policy in order to operate a vehicle.

Now if you are looking for coverage on your vehicle in the event of a car crash or other damage to your vehicle then you will need to have comprehensive and collision coverage.  The most common deductible carried by drivers is $500.  But don’t let this fool into thinking that those are the correct coverages.  Auto insurance policies are designed around the needs and desires of each individual driver.  You need to decide what is right for you.  If you are driving an older vehicle it may not make sense to carry collision coverage (that is something to speak to your agent about).  You may be better off dropping that coverage all together if you are operating a vehicle that is low in value. Also if you are a younger driver or have a couple of blemishes on your record it may make sense to raise your deductible to a $1,000 to save some money.  Another coverage option to understand in the state of Michigan is uninsured/underinsured motorist coverage.  This coverage will give you protection from those individuals without insurance or an insufficient amount of insurance.  It is estimated that a quarter of Michigan drivers are operating without insurance so this is a very important coverage option to have. The last part on your policy is medical payments. This will cover medical expense for you and your passengers in your vehicle in the event of an accident. If you have health insurance you just want to make sure it will cover you in auto related accidents.  Most people are unaware if their health insurance covers automobile related accidents.  It is worth checking into.  Give your human resources department a call at work to find out.  If you find out that your health insurance provider doesn’t cover auto accidents you will need to make your auto insurance company aware.  All of the items in this article play a role in the price you pay for your Michigan no fault insurance policy.  If you educate yourself you will be better prepared to find low Michigan car insurance.  Hopefully this will give you a starting point to understanding the basics.

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