You can demonstrate your financial responsibility by maintaining minimal car insurance with no gaps in coverage. 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. Drivers may want to discuss their PIP options with their insurance company or authorized insurance agent. 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.
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. The difference between bodily injury (BI) and personal injury (PIP) coverage in auto insurance is that the PIP pays the medical bills of the policyholder, while the BI covers the medical bills of others when the policyholder is at fault. Under Michigan's new auto insurance law, every auto insurance company must reduce the average PIP medical premiums across the state for eight years. Michigan auto insurance laws also require drivers to have personal injury protection (PIP) and property protection insurance (PPI) coverage.