The final insurance policy premium for any policy is determined by the insurance company upon application. No-fault insurance consists of four different policies, commonly referred to as “personal liability and property damage” (PLPD) insurance. Michigan auto insurance laws also require drivers to have personal injury protection (PIP) and property protection insurance (PPI) coverage. If you have an accident and are found at fault, you won't have car insurance to cover the costs.
Once you've met the minimum requirements for car insurance in Michigan, there are several other factors that go into determining your exact rate. Liability coverage is the part of your auto insurance policy that pays for the damage you cause to other drivers in an accident where you were at fault. Drivers can present proof of insurance with identification cards or electronically through their insurance company's app on their phone. However, while insurance requirements in Michigan are important, drivers would still benefit from obtaining higher levels of liability insurance than those required by the state.
In 1973, Michigan became a no-fault insurance state, which changed the mandatory insurance that all drivers licensed in the state must have. Encore Insurance Group's expert agents have ten years of experience creating customized auto insurance coverages that include all the coverage you need. Whether you're a Michigan driver buying car insurance for the first time or checking that you have the right amount of car insurance, here's what you need to know about auto insurance laws and requirements in the Great Lakes state. If this happens, PIP and PPI coverages help pay for the expenses incurred in the accident in advance, and your insurer will work with the at-fault party's insurance company to cover the damages.
Michigan has the strictest state minimum insurance requirements in the country, which is part of the reason insurance rates are so high. Michigan's no-fault insurance law means that drivers must carry proof of insurance that shows that they have PIP, PPI, and third-party liability coverage. No-fault insurance pays for your injuries after an accident, but you may still be able to file a liability claim with the other driver's insurance company if you're injured in an accident that they caused.