Auto Insurance In Michigan
Michigan state law requires one to carry a minimum amount of car insurance. This policy is designed to cover the risk of loss or financial liability of an automobile that the owner may encounter if his/her vehicle is involved in an accident resulting in physical damage or property. This coverage guarantees your protection, your vehicle, and passengers who were boarding your vehicle during an accident.
If you are shopping or buying an auto insurance policy, it's imperative to understand the types of coverages available on a car insurance policy. Consumers are protected by different levels of coverage, depending on which insurance policy they buy. This mandatory liability in Michigan ensures that drivers can cater to damage costs for other people's injuries and their property in the event of an accident.
Auto insurance is a contractual agreement between the insured and the insurer(insurance) that protects you against a financial loss in the event of theft or accident. This agreement remains in force if you pay your premiums promptly, and the insurance company will cater to the damages or losses as stipulated in your policy document.
As a resident of Michigan, have you ever thought if the minimum mandatory liability requirement required by law is enough in case of an accident? Visit our Richard J Selleck & Sons Agency Inc. offices and get more information about the available types of coverages.
Factors that determine the amount of premiums you will pay on your auto insurance policy.
- Claims history.
- Geographical location.
- Marital status.
- Driving record.
- Claims history.
- Years of driving experience.
Types of car insurance coverages
- Liability coverage: This policy is compulsory in all states, including Michigan. Every driver is legally required by law to buy the minimum amount of liability coverage stipulated by a given state. It has two components:
- Bodily injury liability: This policy caters to the costs of another person's injuries if you are at fault in case of an accident. It can also cover injuries of family members listed in your policy document.
- Property damage liability: This coverage helps you pay for damages you cause to other people's property while driving. It can cover you when you cause an accident while driving someone else's vehicle with his/her consent.
- Un-insured and under-insured motorist coverage: This form of coverage caters to costs related to injuries or damages to you or your automobile in an accident if the other party is uninsured or under-insured.
- Comprehensive coverage: This type of coverage protects against damages and losses in an accident apart from collision. These covered perils include explosions, fire, theft, falling objects, damage by hailstorms. It does not cover damages arising from animal contact.
- Medical payment coverage (MPC): This policy provides medical bills for you and your passengers in your vehicle at the time of the accident. It can also extend coverage for lost wages, medical payment, and funeral costs.
- Personal injury protection (PIP): This policy provides coverage for your injuries, family members, and anyone boarding your vehicle regardless of who caused the accident.
- Gap insurance coverage: It is also referred to as loan or lease pay-off. This optional policy is applicable when your vehicle is badly damaged or stolen. It pays for the difference between your current car's worth and the remaining lease or loan amount.
- Collision coverage: This is an optional type of coverage that caters to losses and damages arising from a collision with another vehicle, post, fence, potholes, tree, rock outcrops, or any other object.
Feel free to contact us or visit our Richard J Selleck & Sons Agency Inc. offices for more information.