Call Now 248-466-0200

Types of Car Insurance in Michigan

October 26, 2022 Auto Insurance

Michigan is a “no fault” insurance state, which means that you would typically file a claim with your own insurance company after an accident. While the state has some of the strictest auto insurance coverage requirements in the country, approximately 20% of drivers don’t carry insurance.

Below, our team of insurance professionals with Encore Insurance Group describe the types of car insurance in Michigan and the benefits of each. Keep reading to learn more, and call us if we can be of assistance to you in choosing car insurance!

Minimum State Insurance Requirements in Michigan

Michigan requires much higher levels of coverage than other states. The state requires:

  • $50,000 in bodily injury liability per person
  • $100,000 in bodily injury liability per accident
  • $10,000 in property damage liability per accident
  • $1,000,000 in property protection insurance

Liability coverage will cover injuries or damage to other people and vehicles in an accident. Property protection insurance covers damages to non-moving objects, including fences, buildings, construction equipment, and parked vehicles.

Personal injury protection (PIP). Your choice of a coverage level:

  • Unlimited
  • $500,000
  • $250,000
  • $50,000 (for Medicaid recipients)
  • Opt-out (with qualifying health insurance)

Personal injury protection (PIP) coverage pays for injuries to you and your passengers. It will also cover lost wages, ambulance fees, rehabilitation, funeral expenses, and other essential costs due to injuries.

Other Types of Car Insurance in Michigan

There are other instances when you may need to protect your car from certain damages that additional types of car insurance in Michigan will cover.

Collision Coverage

No-fault insurance will not cover repairs to your own vehicle in an accident. To be able to take your car to the shop for repairs after an accident, you’ll need collision coverage. Some companies offer different coverage levels based on whether you were at fault for the accident. Also, if you acquired a loan to buy a new car, the lender might require collision coverage.

Comprehensive Coverage

Comprehensive auto insurance coverage handles costs of damages to your vehicle from circumstances outside of a collision accident. It covers perils like break-ins, theft, fire, and damage from weather events, such as high winds dropping a heavy tree limb on your vehicle.

Uninsured/Underinsured Motorist Coverage

Michigan has some of the highest numbers of uninsured motorists, with approximately one in five drivers not carrying insurance at all or not carrying enough insurance. If an uninsured or underinsured driver causes an accident, you can protect yourself from high medical costs with UM/UIM coverage.

The at-fault driver’s bodily injury liability coverage would normally cover your medical costs that exceed your PIP limits. If the other driver doesn’t have insurance or doesn’t have enough coverage, you would normally need to cover any expenses that exceed your PIP limit out of pocket.

With UM/UIM coverage, you can get coverage for the rest of your expenses that would normally fall under the at-fault driver’s bodily injury liability coverage.

Limited Property Damage (Mini-Tort)

You can get additional protection for vehicular damage not covered by the rest of your policy. This add-on will cover up to $3,000 of repairs for your vehicle.

Gap Insurance

The value of your vehicle depreciates over time, even while you’re still making payments on an auto loan. It’s possible for the value of your vehicle to become less than the amount that you still owe. If you total your car in an accident, your insurance company will only compensate you for the depreciated value of your car.

Gap insurance closes the gap between the true depreciated value and the loan value so that you don’t owe the lending company for the difference.

Rental Car Reimbursement

If you need a rental car while your car is in the shop, rental car reimbursement can cover the cost. Be aware that your insurer may only partner with certain rental providers in the area; these rental services may not have a vehicle similar to yours.

Roadside Assistance

This policy add-on is essential if you’re ever stuck on the side of the road with a flat tire, dead battery, broken windshield, etc. Many such policy add-ons include limited towing services.

Accidental Death Coverage

If you or a passenger dies due to an accident, this coverage will act as life insurance to benefit your family or loved ones.

Contact Our Michigan Auto Insurance Group to Get a Free Quote

Because the types of car insurance in Michigan can be complex, working with an experienced independent insurance agent can help you get the coverage you need at affordable rates. Call us today at Encore Insurance Group at 248-260-4259 or contact us online to get a free quote.