Why Do You Need Auto Insurance ?
Insurance is your protection against disaster should you cause an accident that results in property damage or injuries to other people. It can help cover repairs to your vehicle and related medical costs.
What does auto insurance cover?
Personal Injury Protection (PIP)
This part of your no-fault policy pays all necessary medical costs if you are hurt in an auto accident. It also pays, up to a maximum amount, wages you would have earned if you had not been hurt, for up to three years. If you are killed in an accident, your policy will pay your family up to the monthly amount for three years, based on your earnings and fringe benefits.
Property Protection (PPI)
This no-fault coverage pays up to $1 million for damage your car does in Michigan to other people’s property, such as buildings and fences. It will also pay for damage your car does to another vehicle but ONLY IF THE VEHICLE WAS PROPERLY PARKED. Other vehicle damage is covered only if the vehicle has collision and/or comprehensive coverage.
Residual Bodily Injury and Property Damage Liability Insurance (BI/PD)
This coverage pays your defense costs and any damages you are found liable for as the result of an auto accident, up to the limits of the policy.
“Mini-Tort” Limited Property Damage Liability Insurance
Under Michigan law, if you are 50% or more atfault in an accident, you can be sued for damages to another person’s car which are not covered by collision insurance. Most companies offer this coverage, which is sometimes called mini-tort coverage.
Uninsured Motorists Insurance
Coverage for uninsured motorists is an optional coverage, that compensates you for pain and suffering and excess wage loss. This coverage applies only if a hit and run vehicle or an uninsured motorist strikes you. If you are killed in such an accident, benefits may be paid to your survivors.
Comprehensive physical damage coverage
Pays for damage to your car from theft, vandalism, flood, fire, and other covered perils.
Pays for damage to your car when it hits or is hit by another object.