A Michigan no-fault policy 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. In exchange for these benefits, Michigan motorists relinquish the right to sue in auto accidents except when someone is killed or very seriously injured. All Michigan drivers must purchase PLPD insurance. PLPD refers to “Personal Liability and Property Damage”. It usually refers to the minimum state required liability limits of auto insurance on a vehicle. In Michigan it is $20,000. This coverage offers third party coverage for bodily injury but offers no coverage for vehicle damage if you are in an accident. Michigan drivers may purchase collision and/or comprehensive insurance to cover damage to their own car.

No-fault does not mean that when you are in an accident and hit someone that you are not at fault. When making a collision claim depending on what happened when the accident occurs either the police or the insurance company will determine if you are at fault or not. Most people believe that if you are not at fault and you file a claim that your insurance rates will not go up, but even not at fault accidents me be rated on your insurance for up to 5 years. Your best bet is to talk to your insurance agent to inquire on a claim you want to file.

If you are trying to make sense of your automobile insurance options and the limits that you need, we can help. We’ve covered the basics to help you read and understand your coverage options and policy language.

AllAbout Automobile Policy Coverage

An automobile insurance policy is designed to provide you with a level of protection against property, liability and medical costs if you are involved in an accident:

• Property coverage pays for damage to or theft of your car.
• Liability coverage pays for your legal responsibility to others for bodily injury or property damage. Most states require car owners to purchase a minimum of bodily injury and property damage liability insurance.
• Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.

Comprehensive and Collision Coverage

Collision: Covers damage to your car when your car hits, or is hit by, another vehicle or other object. This coverage is not required by a state, but if you have a loan or a lease, then the lien holder will require it. Did you know if you hit a pot hole and file a claim you will be charged for an at fault accident?)

Comprehensive: Covers your vehicle, and sometimes other vehicles you may be driving, for losses resulting from incidents other than collision. This coverage is not required by a state, but a lender may insist that you carry it until your loan is paid off.

Types of Liability Coverage

Bodily injury liability (BI): This covers injuries that you, the designated driver or policyholder cause to someone else. It does NOT cover the cost of damage to your vehicle, or to you or other people on your policy. It is mandatory in most states.

Property damage liability (PD): Covers you or someone driving the car with your permission if the car damages someone else’s property. It also provides you with legal defense if another party files a lawsuit against you.

Limited Property Damage Liability (Mini Tort): This coverage will reimburse you if you have regular/standard collision and are not at fault in an accident. You can sue the other party that hit you for up to $1,000 of your deductible.

Property Protection: This coverage will reimburse a vehicle you may hit that is legally parked, as well as any damage you may do to property, I.E- If you hit a building.

Medical payments (MP) or personal injury protection (PIP): This no-fault coverage provides medical expenses to you and your passengers injured in an accident.

Uninsured and underinsured motorist coverage (UM or UIM): This coverage will reimburse you if you are hit by an uninsured or hit-and-run driver or when an at-fault driver has insufficient insurance to pay for your total loss.

We’re Here to Help

Call our office today at (313) 562-8373 to learn more about all of our automobile insurance and personal risk management solutions.

Top Ways to Save on Your Auto Premium:

• Consider raising your deductible.
• Keep up your good driving record.
• Drive a car with safety features such as anti-lock brakes and airbags.
• Install an anti-theft device.
• Ask about our multi-policy discounts.