Michigan law requires that you have no-fault car insurance for your car. If you have an accident, this mandatory insurance pays for injuries to people and for the damage that your car causes to other people's property and to properly parked cars. DOES NOT COVER ANY OTHER DAMAGE TO CARS. Car insurance is a legal requirement for Michigan drivers.
To meet state requirements, drivers must have a minimum amount and type of car insurance. A driver with insufficient liability insurance in Michigan faces severe penalties, even if it's their first offense. The consequences of driving without insurance exceed the monthly insurance premium and may result in the following penalties. Some car insurance qualifying factors, such as your driving history, can significantly affect your insurance costs.
In some states, your vehicle can be towed and you won't be able to claim it until you present proof of insurance. The PIP coverage regulations were reviewed by Michigan's auto insurance laws, which affect all Michigan drivers. If you can't drive your car because of a covered loss, this coverage helps pay for a car rental or other transportation expenses so you can get back on the road. To exercise this option of reducing coverage, insurance companies will require motorists to sign a form approved by the Director of Insurance and Financial Services.
If you have a car accident, no-fault insurance will reimburse you for medical or hospital expenses, wage losses due to incapacity to work, and, if necessary, funeral expenses. Michigan's new auto insurance laws mention that auto insurers can no longer use gender, marital status, homeownership status, credit score, education level, employment and zip codes as qualifying factors. Even though the car insurance requirements in Michigan are liability insurance, PIP and PPI, many drivers choose to purchase additional insurance with a car insurance quote. In addition, the new law “does not prohibit increasing the premium of any individual insurance policy if the increase is due to the application of qualifying factors”, so it is quite possible that if your insurance company “re-qualifies you or your family members, your premium will increase”.
Auto insurance requirements in Michigan also require state approval of new auto insurance rates and increase penalties for some insurance violations. Michigan car insurance laws and requirements apply even if you don't “own” a car or truck in the conventional sense, such as if you only rent the car or van or borrow it for an extended period (which may or could exceed 30 days). The terms, definitions and explanations of insurance are for informational purposes only and do not replace or modify in any way the definitions and information contained in the individual pages of contracts, policies or insurance statements, which are decisive. In a no-fault system, your own auto insurance coverage covers your medical care and other out-of-pocket expenses after a car accident, up to the limits of the policy, regardless of who caused the accident.
Not having car insurance in many states can make you a high-risk driver when buying car insurance.