New Minimum Michigan State Requirements For Ann Arbor Car Insurance

By Lisa Olsen Posted in Car Insurance News



Michigan has a relatively unique car insurance system, being 1 of 12 states in the country to have a no-fault policy. A a no-fault system means both motorists are covered in an accident, regardless of who’s at fault. The upside to the no-fault system is that neither motorist will be left without coverage in an accident and no one will have to have the burden of medical expenses or repairs fall on their own shoulders. The downside is that since legally no one claims fault, it makes it much harder for the victim to sue the other driver for damages. Its something Ann Arbor car insurance buyers will want to consider when looking for a policy.

Liability Coverage

Every Michigan driver is required to carry liability coverage, which takes care of the other driver’s expenses. For bodily injury the minimum coverage is set at 20,000 dollars or $40,000 of combined medical expenses if there are multiple people in the other car. For property damage, the state of Michigan requires art least $10,000 dollars of coverage.

PIP Coverage

Like many no-fault states, Michigan also requires its drivers to carry Personal Injury Protection (PIP) coverage. PIP covers the driver’s own medical expenses, as well as helps them recover lost wages if their injury keeps them from working. In Michigan, the insurer must pay all medical expenses a driver incurs from an accident and will also cover up to 80% of lost wages.

Additional Coverage

Michigan insurance laws do not require drivers to carry collision insurance though it is encouraged. Uninsured motorist insurance isn’t required either but may be a good investment. For Ann Arbor car insurance policy holders without uninsured motorist coverage who get in an accident with someone without insurance will leave them having to pay for their property damage and some of their own medical expenses. An overwhelming burden to say the least.

Related posts:

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  2. New Minimum Louisiana State Requirements For Baton Rouge Car Insurance
  3. New Minimum Arkansas State Requirements For Little Rock Car Insurance
  4. New Minimum California State Requirements For San Jose Car Insurance
  5. What Is Personal Injury Protection For Car Insurance?






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