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 some states, your vehicle can be towed and you won't be able to claim it until you present proof of insurance. This type of car insurance coverage in Michigan is used to repair your vehicle when physical damage occurs due to incidents not related to a collision (subject to the deductible).
For example, policyholders with Medicare Parts A and B may be excluded from PIP insurance if other members of their household have their own car insurance or medical insurance that covers car accidents. Not having car insurance in many states can make you a high-risk driver when buying car 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. Some car insurance qualifying factors, such as your driving history, can significantly affect your insurance costs.
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. Liability limits in auto insurance are the maximum amount your insurance company will pay for injuries and property damage in accidents you cause. 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. For example, both collision insurance and comprehensive insurance cover damage to the policyholder's car.
If Michigan drivers don't purchase at least the minimum amounts of auto insurance coverage required by Michigan law, they may face penalties for driving without insurance. 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”. For more information, see WalletHub's guides on how much car insurance you need and affordable car insurance in Michigan. Drivers should also consider taking out other types of auto insurance to better protect themselves, since liability insurance does not cover the injuries or property of the policyholder.