Auto Insurance
Why should I purchase auto insurance?
To drive legally in Michigan, state law requires the purchase of no-fault automobile insurance. If you or your family are injured in an auto accident, your auto insurance will pay all reasonably necessary expenses with no maximum limit, as well as wage loss benefits and replacement service benefits. In a serious accident, injuries can amount to hundreds of thousands of dollars in cost to you. The financial security that results from being insured is one of the most important reasons to purchase insurance.
Driving without insurance is a crime. It is punishable as a misdemeanor with a fine of up to $500 and up to one year in jail. The court may also order your license suspended for 30 days or until you are able to provide proof of valid insurance.
What auto insurance coverage do I have to purchase?
There are three basic parts to a no-fault policy that must be purchased and carried on every vehicle:
Personal Injury Protection (PIP) – PIP pays all reasonable and necessary medical expenses for your lifetime if you are hurt in an auto accident, and wage loss and replacement services for up to three years after the date of the accident.
Property Protection (PPI) – PPI pays up to $1 million for damage your vehicle does in Michigan to other people’s property, such as buildings, fences, and other people’s properly parked vehicles.
Residual Bodily Injury and Property Damage Liability (BI/PD) – BI/PD pays, up to the limits of the policy, your defense costs and any damages you are found liable for as the result of an auto accident in which someone was killed or seriously injured. The minimum limits of coverage that everyone must purchase are:
$250,000 per person who is hurt or killed in an accident
$500,000 for each accident if several people are hurt or killed
Up to $100,000 for damage your vehicle does to property damage in another state.
These minimum limits are often referred to as 250/500/100.
Let us help you determine the coverages that will best fit your needs.