Michigan Auto Insurance Requirements

With the current increase in the number of accidents per day, the importance of auto insurance is rapidly rising. Auto insurance is now of utmost importance since not only is it made mandatory by states but it has become a necessity so that your assets are not jeopardized in the event of an accident. An insured person pays a certain amount of premium per month to the company which in turn promises to support financial losses as long as the policy lasts. It provides you a financial back up to fall back on in an unfortunate incident which would prove otherwise to be a tremendous burden on your financial income and savings.
The state of Michigan makes it mandatory for every registered vehicle owner to own a no fault insurance policy. A no fault insurance policy means that the company will pay even if you are at fault. The auto insurance laws in Michigan are quiet strict. Whereas other states make it compulsory for you to buy liability insurance, in Michigan it is compulsory to buy liability insurance along with personal injury protection and property protection insurance. Buying these insurance policies is the only way to establish financial responsibility in the state thus it cannot be avoided by any vehicle owner. The Michigan Auto Insurance Requirements are as follows:

  • $20,000 of coverage for injuries or death of a person in a single accident
  • $40,000 of coverage for death and injuries to more than one person in a single accident
  • $10,000 of property damage coverage

These are the minimum state requirements that are mandatory to have along with the personal injury protection and property damage protection. Experts advice buying more than the minimum requirements as it is much likely that you will incur higher damages then these in an accident.
Failure to fulfill Michigan auto insurance requirements will lead to a suspension of your driving license and registration. In severe cases it will also result in heavy fines. If stopped by a police officer you will be required to show not only your car registration and license but also your insurance card. So it is highly recommended to fulfill all the insurance requirements in Michigan before purchasing an insurance policy for your vehicle.

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