Understanding the way in which automobile insurance works is critical to be certain that protected when driving in Michigan.
To drive legally in Michigan, the law requires you to purchase no-fault automobile insurance. If you or your family are injured in an auto accident, your auto insurance will pay all reasonably necessary expenses up to the maximum limit you selected (we always strongly encourage to select unlimited medical coverage) along with wage loss benefits and replacement service benefits for a period of time. In a serious car crash, the injuries can mean a cost of hundreds of thousands of dollars to you. The financial security of being insured is one of the most important reasons to buy insurance.
If you’re involved in an auto accident, your car insurance can help pay for injuries or property damage after you file a car insurance claim. Automobile insurance can help pay for repairs, medical expenses, property damage, and rental car fees.
When you buy an auto insurance policy, you’ll select your coverage limits and deductible. If you are involved in a car accident and file a claim, you’ll have to pay a deductible before you get coverage from your policy. The amount of the deductible can be anywhere from $20 to $1,000. If you go with a high deductible, your premiums may go down; however, you’ll pay more out-of-pocket claims costs. And if you choose a lower deductible, you’ll see lower out-of-pocket costs, but your rate may increase.
Prior to purchasing an insurance policy, it’s a good idea know the answers to these questions:
• What kind of vehicle do you drive?
• How many miles a year do you drive?
• Where do you live?
• What’s your driving history… Any accidents?
• Who will be driving your vehicles?
• Did you have any gaps in car insurance coverage?
Your auto insurance can help you cover several types of costs in the vent you’re in an accident. There are a number of different insurance coverages that you can add to your policy, such as:
• Medical payments coverage;
• Collision coverage;
• Comprehensive insurance;
• Auto glass insurance;
• Car insurance towing coverage;
• Bodily injury liability insurance;
• Auto property damage liability; and
• Gap insurance
No-fault insurance is required by law in Michigan. Every owner of a car must purchase certain basic coverages to receive license plates. It’s against the law in Michigan to drive or let your car be driven without no-fault insurance.
In fact, if you own a vehicle and you drive it, or let another person drive it without basic no-fault insurance, you can be sued and held personally liable for all injuries and damages that result from an accident, including your own. Plus, you may be convicted of a misdemeanor and fined $200 to $500, put in jail for up to one year, or both. A judge may also order your license suspended for 30 days or until you’re able to provide proof of valid insurance.
If you have an auto accident, no-fault insurance pays for your medical expenses (up to the amount you selected), wage loss benefits (for a certain period of time), replacement services (for a certain period of time), and the damage that you do to other people’s property. It doesn’t matter who caused the accident.
The required minimum coverage no-fault policy will pay up to certain amounts if you’re found legally responsible. Although you may (and should) buy more coverage with higher limits, the minimum coverage offers:
• Up to $20,000 for a person who is hurt or killed in an accident.
• Up to $40,000 for each accident if several people are hurt or killed.
• Up to $10,000 for property damage in another state
A no-fault policy covers all family members who reside in the same house.
When you receive an auto insurance quote, insurance agents will use an auto insurance calculator to determine your cost. The formula considers several factors, including:
• Your driving record, as a clean claims history means you’re a safe driver;
• Where you live because more populated areas can increase your risk of an accident, vandalism, or theft;
• Your coverage history to see that you’ve had continuous auto insurance protection;
• The details of your vehicle, like the make, model, and year; and
• Your driving habits because the more you drive in a year, the higher your rate can be.
The Department of Insurance and Financial Services’ (DIFS) website is a great resource to find a licensed insurance company and insurance agent to help you in purchasing auto insurance. Some insurance companies don’t use local agents, so you can call the insurance company directly to get a quote. Remember that an insurance company can’t deny you coverage based on where you live or whether they have an agent in your area.
For a free consultation with an experienced auto accident attorney in Michigan, contact Buchanan Firm. Our firm proudly serves people all across Michigan, including major cities like Grand Rapids, Muskegon, Detroit, Lansing, Holland, St. Joe, and Ann Arbor, and rural towns such as Lowell, Ada, Fremont, Newaygo, Grand Haven, Rockford, and Cedar Springs. We will meet you after hours, at home, or in the hospital to accommodate you.