If you pay with cash or buy a car directly from a private seller, you probably won't be asked to present proof of insurance to take possession of the vehicle. Either way, you must still meet the minimum financial responsibility requirements to drive legally in Michigan. To drive legally in Michigan, state law requires the purchase of no-fault car insurance. If you or your family are injured in a car accident, your auto insurance will pay for all reasonably necessary expenses with no maximum limit, as well as wage loss benefits and replacement service benefits.
In a serious accident, injuries can cost you hundreds of thousands of dollars. The financial security that results from being insured is one of the most important reasons to buy insurance. What this means is that the law assumes that, since he didn't have proof of insurance with him, he didn't have any insurance. In addition, the Michigan Secretary of State has the authority to restrict your car registration privileges until you can show proof of insurance.
When your policy is coordinated, your auto insurance will secondarily pay for all reasonable expenses that aren't covered by your health insurance coverage. Your insurance must also include property insurance protection benefits (PPI), which cover losses from property damage during a car accident. Collision and comprehensive insurance Your liability insurance DOES NOT pay for repairs to your car if it is damaged in an accident. While Michigan law doesn't require it, it's also very common for Michigan policies to include coverage for uninsured or underinsured drivers if you're involved in a car accident involving other drivers who don't have the required insurance.
You can also qualify for a discount if you're a good student or if you have more than one type of policy with the same company (such as your car insurance policy and an insurance policy for homeowners or renters). The MAIPF was created to offer insurance to people who have difficulty finding insurance coverage. To protect themselves and their passengers in the event of an accident, Michigan drivers should carefully select their auto insurance policies and take out the appropriate PIP insurance limits. SR-22 insurance isn't a real insurance policy, but rather a certificate that shows that you have the state's minimum liability coverages.
If you own a car in Michigan, make sure you understand Michigan's auto insurance laws before you get behind the wheel. For more information, see WalletHub's guides on no-fault insurance and the best car insurance in Michigan. Use the DIFS insurance licensee locator to search for insurance companies, agents and agencies licensed to sell homeowners insurance in Michigan. The Department of Insurance and Financial Services (DIFS) website can help you find an insurance company and a licensed insurance agent to help you purchase car insurance.
Not all insurance companies use the same factors to group people together for qualification purposes, so the cost of insurance can vary considerably.