The state of Michigan is unique, because it was the first state to start the whole no fault car insurance trend, thirty four years ago. No fault car insurance laws have cut a lot of the red tape involved in accident claims, and made Michigan car insurance premiums cheaper for most of the residents. On the other had, car insurance fraud is much more prevalent in states like Michigan that have no fault laws.

So, what is a no fault car insurance law? It’s pretty simple. If you get into a car accident with someone, then, regardless of who was at fault, you get paid by your own car insurance company, and the other driver gets paid by theirs. There’s none of the frustrating claim making with the car insurance company of the at fault driver, who doesn’t want to give any money to you since you’re not their customer and will do everything to get in the way. Besides the lower premiums, one of the great things about no fault is that it makes things go much more quickly. This is because there need be no lengthy investigation into who caused the accident. Everyone takes care of their own business.

Required Michigan car insurance coverage.

• PIP, or Personal Injury Protection.

This coverage is on you wherever you travel in this country or in Canada. If you want to lower your premium price, you can always have your deductible raised to achieve that goal. This coverage is for things such as medical costs and any wages that you might lose while you are out of work for your injury. With PIP in Michigan, you can get up to $4,400 every month for a period of three years for missing work, but more if you get more than the minimum coverage. If you die, your funeral and burial are paid for, and benefits are given to your family. In the case of injury, your health insurance kicks in first if you have it.

• Property Damage.

Other cars are paid for by their own car insurance company, but win it comes to collisions involving you and other things that aren’t vehicles, then your property damage coverage comes in. This is for if you do something such as crash into someone’s house or mailbox. You are only covered for this while you are within the state of Michigan, and are covered for up to a million dollars.

• Residual Liability.

This is very important coverage in a no fault state. It helps you to a certain extent if the other driver, or the person whose property you damage, sues you. This is a lot like the usual liability in at fault states, in that you are covered for ten thousand dollars of property damage, twenty thousand for a single person’s injury, and forty thousand for multiple people’s injuries. The difference is just that it only kicks in if someone files a lawsuit against you. However, it’s good idea to get more than the minimum requirement. Like in other states, in the state of Michigan you have to carry proof of insurance everywhere you go if you want to avoid getting your license suspended.

Cheers,

Fashun Guadarrama.