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. 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. For example, both collision insurance and comprehensive insurance cover damage to the policyholder's car. Liability limits in auto insurance are the maximum amount your insurance company will pay for injuries and property damage in accidents you cause.
Some car insurance qualifying factors, such as your driving history, can significantly affect your insurance costs. If Michigan drivers don't purchase at least the minimum amounts of car insurance coverage required by Michigan law, they may face penalties for driving without insurance. Not having car insurance in many states can make you a high-risk driver when buying car insurance. In some states, your vehicle can be towed and you can't claim it until you present proof of insurance.
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. The consequences of driving without insurance exceed the monthly insurance premium and may result in the following penalties. 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. 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.
For more information, see WalletHub's guides on how much car insurance you need and affordable car insurance in Michigan.