Personal Injury Protection (PIP): PIP pays for all reasonable and necessary medical expenses for life if you are injured in a car accident, and for wage loss and replacement services for up to three years after the date of the accident. Some Michigan insurance companies include clauses in their insurance policies that offer “reduced coverage.” If the at-fault driver has liability insurance coverage, but not for an amount that fully compensates the victim for the damages suffered, and the victim has purchased coverage for underinsured motorists, that coverage will provide additional benefits, up to the limits of the policy purchased, for the types of damages that the victim could have recovered from the at-fault driver if that driver had been insured with more comprehensive insurance. Michigan's new auto liability prohibition law is now in full effect, and there are many new car insurance options available for consumers to purchase for the first time since the 1970s. 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”.
The cheapest states for car insurance are Iowa, Vermont and Nebraska, according to the WalletHub cheap car insurance study. As a law firm that handles hundreds of car accident cases year after year, we have seen first-hand how important car insurance is in the event of these catastrophic events. 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. 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.
The no-fault system requires Michigan drivers to have personal injury protection (PIP) insurance to pay for their own medical expenses after an accident, as well as property protection insurance to pay for any damage their cars cause to other people's property. We strongly urge all consumers to purchase coverage for uninsured or underinsured motorists to provide additional protection for themselves and their family if they are victims of a serious injury caused by the fault of another uninsured driver or inadequate insurance. For more information, see WalletHub's guides on no-fault insurance and the best car insurance in Michigan. 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.
In addition to the population and the number of uninsured drivers, other factors affecting car insurance costs include state laws, crime rates, and special weather hazards. State laws govern how much insurance coverage drivers must have, and no-fault laws affect insurers' risks. 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.
