Brief explanation of no-fault insurance in Michigan It's illegal to drive or let your car be driven without liability insurance. If you have a car accident, no-fault insurance pays for your medical expenses, lost wage benefits, replacement services, and any damage you cause to other people's property. Collision insurance covers the costs of repairing or replacing your own car in the event of an accident, regardless of who was at fault. 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.
Some car insurance qualifying factors, such as your driving history, can significantly affect your insurance costs. 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. Michigan's insurance reform also reduced the Michigan Catastrophic Claims Association (MCCA) fee, which drivers must pay if they purchase unlimited PIP insurance. The consequences of driving without insurance exceed the monthly insurance premium and may result in the following penalties.
Michigan has some of the most expensive car insurance premiums in the country, as well as high rates of fraud. For example, it might not be worth doing expensive repairs to an old car with high mileage, and you might want to save up to buy a new car instead of paying for additional insurance. 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. You should cancel your car's full coverage insurance when the cost of the insurance is equal to or greater than the potential payment, in the event of a covered event.
Not having car insurance in many states can make you a high-risk driver when buying car insurance. The PIP coverage regulations were reviewed by Michigan's auto insurance laws, which affect all Michigan drivers. In some states, your vehicle can be towed and you won't be able to claim it until you present proof of insurance. 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.
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. Auto insurance requirements in Michigan also require state approval of new auto insurance rates and increase penalties for some insurance violations.