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Michigan Auto Insurance: Mandatory Auto Insurance Coverages

By Insurance.com Posted : 02/19/2007


Michigan Bodily Injury & Property Damage Limits:


 This coverage pays in the event you are sued or found legally liable for damages resulting from a motor vehicle accident. In the state of Michigan, insured persons are protected from being sued except in certain special situations. You can be held liable for:


  1. Allowable expenses, work loss, or survivors' loss benefits in excess of the daily, monthly, or three year limitations on those benefits;
  2. Non-economic damages (pain and suffering) if you cause an accident in which a person is killed, seriously injured, or permanently disfigured;
  3. Intentionally caused harm; or
  4. Up to $500 for damages to another person's car that are not covered by insurance.

You should be aware that the $500 liability described in item (d) above is not covered under residual bodily injury and property damage liability coverage. If you want coverage for that liability, it is available but must be purchased separately. In addition, each car nsurance company places limitations on this coverage. Some exclusions include payments:

  1. When an insured person is transporting people or property for a fee;
  2. To an employee of a covered person;
  3. To an insured person or their property;
  4. For damage you cause while driving an owned vehicle that is not insured on your policy; and
  5. For intentional harm
Bodily Injury & Property Damage coverage:
$20,000 person/$40,000 accident/$10,000 property
$50,000 person/$100,000 accident/$50,000 property
$100,000 person/$300,000 accident/$50,000 property
$100,000 person/$300,000 accident/$100,000 property
$250,000 person/$500,000 accident/$100,000 property

In Michigan, a driver must have a minimum coverage of $20,000 for bodily injury to one person, $40,000 for bodily injury sustained by two or more persons in a single accident, and $10,000 for property damage that results from one accident. To adequately protect yourself, you may want to purchase much more than the minimum amount of coverage required for Illinois.

Property Protection Insurance (PPI) and Residual Property Damage Liability Insurance:

This coverage will pay up to $1 million for damages caused to other people's property in Michigan, such as buildings and fences, regardless of fault. It will also pay for damage your car does to another person's properly parked vehicle. It does not pay for any other damage to cars. Damage to your own property is not covered.

If the incident occurs outside Michigan, Residual Property Damage Liability Insurance covers your legal liability for property damage

Personal Injury Protection Medical:

PIP is part of a mandatory Michigan no-fault automobile insurance policy. PIP covers injuries to covered persons resulting from a motor vehicle accident, regardless of who is at fault in the accident. PIP covers you, your spouse, relatives who live with you and, in some instances, other people occupying your vehicle.
There are four major components of PIP:

Medical Benefits: This pays for all reasonably necessary products, services, or accommodations necessary for an injured person's care, recovery, or rehabilitation.

If you have health insurance that will pay medical expenses from a motor vehicle accident on a primary basis, you can save money on your car insurance rates by purchasing what is known as coordinated or excess coverage. Under this option, payment for medical expenses is made to the extent available under your health plan before expenses are submitted to the auto insurer. Payment under this option may be subject to a deductible. Some health plans exclude payment for expenses resulting from auto accidents. Be sure to read your policy or consult your benefit plan administrator before choosing coordinated coverage.

Work Loss Benefit: If you are unable to work as a result of injuries received in a motor vehicle accident, this coverage will pay up to 85% of your lost income for up to three years from the date of the accident. This benefit is subject to a maximum amount and the terms of your policy.

As with no-fault medical benefits, work loss benefits can be purchased on a coordinated or excess basis. If you have disability coverage that will pay work loss benefits on a primary basis, you can choose to make that coverage primary and save money on your auto insurance. Payment under this option may be subject to a deductible. Be sure to read your policy or consult your benefit plan administrator before choosing coordinated coverage.

A person who is 60 years of age or older and would suffer no loss of income if injured in a motor vehicle accident may waive coverage for work loss benefits and receive a slightly reduced premium.

Survivors' Loss Benefits: If you are killed in a motor vehicle accident, this coverage will pay your family what they would have received from your earnings and fringe benefits for up to three years. This benefit is subject to the terms of your policy and the same maximum amount as work loss benefits.

Replacement Services Benefits: The policy will pay up to $20 per day for up to three years for services injured persons are no longer able to provide for themselves or their families, such as housekeeping and yard work..

Please Note: This coverage definition is intended only as a guideline. All terms and coverages are defined solely by your policy.

*Coverage minimums displayed are the minimum available through insurers on Insurance.com.

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