A Michigan no fault auto insurance provides unlimited medical and rehabilitation benefits. It provides wage loss benefits for up to three years, and $20 per day for replacement services if you are injured in an auto accident, regardless of fault.
Auto insurance Michigan
- What the Law Requires
Michigan law requires no-fault insurance. Every registered car must be insured. Every car owner must buy basic coverage in order to get license plates. It is a misdemeanor to drive or let your car be driven without basic no-fault coverage. If you are convicted of driving without basic no fault insurance coverage, you may be fined up to $500, put in jail for up to one year, or both.
If you are unable to produce proof of insurance when requested to do so by a law enforcement official, you may be found guilty of a civil infraction. The court may order your license suspended for at least 30 days or until you are able to provide such proof. You may have to prove you purchased a pre-paid non-cancelable insurance policy before you may renew your vehicle’s registration.
- What happens if you drive without Insurance and have a car accident
If you own a car without no-fault insurance and have an accident: You can be sued and held personally liable. You may have to pay a lawyer and court costs. If you are hurt in an accident involving a vehicle you own that is not insured, you would not be paid for medical expenses, wage loss, loss of services, or any other no-fault benefits. If you are convicted of driving your car, allowing someone else to drive your car, or if you drive another person’s car, which you know does not have no-fault insurance, you may be fined up to $500, put in jail for up to one year, or both.
- Auto Insurance Eligibility
A Michigan insurance law called the Essential Insurance Act requires auto insurers to offer coverage to any eligible person. This includes most Michigan drivers. You are an eligible person for auto insurance if you have a car registered in Michigan or have a valid (not suspended or revoked) Michigan driver’s license. However, there are times when a company can refuse to insure you.
- Reasons for Denial
You can be turned down for insurance if: Your driver’s license is suspended or revoked. Within the past 5 years, you have been convicted of trying to defraud an insurance company, or have been denied payment of a claim over $1,000 because there is evidence of fraud on your part. Within the past 3 years, you have been found guilty of a felony with a motor vehicle, driving under the influence of alcohol or drugs, failing to stop at the scene of an accident, or reckless driving. Your car does not meet Michigan safety requirements. Within the past 2 years, your auto insurance has been canceled for non-payment of premium. Companies can overlook previous non-payment of premium if you pay your entire premium in advance. The insurance you want to buy requires you to be a member of a group, club or organization and you do not join the organization. You have more than the allowable number of points on your driving record. You do not meet the requirements of a company’s underwriting rules
- The Basic No-Fault insurance Has Three Parts
- Personal Injury Protection (PIP)
This part of your no-fault policy pays all necessary medical costs if you are hurt in an auto accident. It also pays, up to a maximum amount, wages you would have earned if you had not been hurt, for up to three years. This amount is adjusted each year on October 1st, and you may wish to contact our agency to determine the current maximum monthly amount or check our website for the current maximum. If you are killed in an accident, your policy will pay your family up to the monthly amount for three years, based on your earnings and fringe benefits. You may also be entitled to up to $20 per day in replacement services. This is to pay for services you are no longer able to provide for yourself or your family because you are injured, such as housekeeping and yard work.
You may coordinate PIP coverage with other health or disability coverage you have to reduce your PIP premium. Medicaid, Medicare, and some self-funded health plans, however, do not allow coordination with PIP coverage. If you do coordinate your health coverage, and you are injured in an auto accident, your no-fault policy will pay your medical expenses or lost wages after you have used all the benefits under your health or disability plan. When you coordinate, these auto insurance coverage may be called excess medical/wage loss. Check with your health insurer to verify they will cover benefits related to a car accident before you agree to coordinate.
2. Property Protection Insurance (PPI)
This no-fault coverage pays up to $1 million for damage your car does in Michigan to other people’s property, such as buildings and fences. It will also pay for damage your car does to another vehicle but ONLY IF THE VEHICLE WAS PROPERLY PARKED. Other vehicle damage is covered only if the vehicle has collision coverage and/or comprehensive coverage.
3. Residual Bodily Injury and Property Damage Liability Insurance (BI/PD)
This coverage pays your defense costs and any damages you are found liable for as the result of a car accident, up to the limits of the policy. Although the no-fault law protects insured persons from being sued in most situations, there are certain exceptions. In general, these are the circumstances under which you could be sued: If you cause an accident in Michigan in which someone is killed or seriously injured. If you are involved in an auto accident in a state other than Michigan. For damages to another person’s car which are not covered by insurance, if you are 50% or more at-fault in the accident. This part of the law is known as “mini-tort.” To be covered, you must purchase additional coverage called limited property damage liability insurance. Your agent can help you determine the amount of coverage you should purchase.
