Call Now 248-466-0200

Types of Michigan Car Insurance Coverage

In Michigan, there are several types of car insurance available to you as a driver. The law requires that you have four types of coverage in your car insurance policy. Additionally, you can choose to purchase up to six optional types of Michigan car insurance to supplement your coverage. As a resident of Michigan, you must attain and carry car insurance before you register or drive your vehicle.

Call Encore Insurance at 248-466-0200 today to find the car insurance coverage that’s right for you. 

Types of Car Insurance Coverage in Michigan

In Michigan, the state divides car insurance into two types: mandatory coverage and optional coverage.

Mandatory Michigan Car Insurance Coverage

Michigan is a no-fault insurance state. The various policies that make up no-fault coverage cover both bodily injury and property damage, managing incidents for which you could be held liable.

The minimum amount of insurance coverage for bodily injury in Michigan is $50,000 per person involved in a covered accident, with a maximum of $100,000 per accident. Additionally, a minimum of $10,000 in coverage is required for damage to another person’s property.

Michigan’s no-fault law requires that every driver in the state have the following types of coverage:

Personal Injury Protection

Personal Injury Protection insurance provides benefits that cover various costs associated with suffering an injury following an accident. These benefits reimburse:

  •         Loss of wages
  •         Medical expenses
  •         Any other essential services required by the eligible injured parties

Residual Bodily Injury Liability

This type of insurance protects you financially if you are found legally responsible in an accident that caused bodily harm to someone other than yourself.

In Michigan, drivers must have at least $50,000 of bodily injury coverage for each person and $100,000 for each accident. 

Property Protection Insurance

All car insurance in Michigan includes a mandatory $1 million in property protection insurance coverage. This type of coverage protects private and state-owned property within the state of Michigan that you may damage in an accident, including parked cars, buildings, trees, and more.

Property Damage

This policy protects you financially if you are responsible for damage to another person’s vehicle or property in an accident that occurs outside of Michigan. The legal minimum for property damage coverage is $10,000, though the recommended amount is around $100,000.

Optional Michigan Car Insurance Coverage

These additional types of car insurance are available in Michigan for you to add to your policy and protect yourself comprehensively in more situations. The following coverage policies are optional:

  1. Collision Insurance: Collision insurance covers the costs of repairs for any vehicular damage incurred during an accident. You can choose from limited, standard, or broad collision coverage.
  2. Comprehensive Coverage: This type of insurance covers events outside of an accident and outside your control, such as theft, break-in, or fire.
  3. Coverage Against Uninsured or Underinsured Drivers: If you are involved in an accident with someone who is uninsured or underinsured, this policy protects you from taking on the full financial burden.
  4. Limited Property Damage (Mini-Tort): This type of coverage serves as an additional buffer, covering a maximum of $3,000 of damage or repairs for your vehicle that aren’t covered elsewhere in your policy. 
  5. Gap Coverage: This type of insurance covers the difference between the value of your vehicle and any remaining balance owed on it in the event that you have not completed the payments for the vehicle.
  6. Accidental Death Coverage: This policy acts as life insurance if an accident results in your death or the death of a passenger.

Ready to build your insurance policy? All of these policies are available with Encore Insurance Group. Contact us today to set up a consultation and find the right Michigan car insurance for you.