Auto insurance in Michigan is divided into 2 sections – mandatory No Fault coverages and optional coverages. Many times companies, clients and agents will write very low limits in order to lower their premium cost. At Cardinal Insurance Group, we not only believe in purchasing higher limits to protect your assets, we also strongly hold that if you make a mistake that injures or kills another party, they, their family deserve more than $20,000. At Cardinal we provide all clients with a quote showing several optional limits of these mandatory coverages including $100,000/$300,000/$100,000 as well as $500,000/$500,000/$500,000.
A Michigan No Fault auto insurance policy will include the following as the law requires:
- Residual Bodily Injury and Property Damage Liability (BI/PD): BI/PD pays, up to the limits of your policy, damages that you are found legally liable for as the result of an auto accident in which someone was killed or injured. The minimum limits of coverage that everyone must purchase in Michigan are $20,000 per person, $40,000 for each accident, and $10,000 for damage your vehicle does to property damaged in another state. These minimum limits are often shown as 20/40/10.
- Personal Injury Protection (PIP): Personal Injury Protection pays reasonable and necessary medical expenses if you are hurt in an auto accident, including wage loss and replacement services up to three years. Michigan’s auto policy has the highest level of medical benefits available in ANY state with a current UNLIMITED amount. There is NO cap. Most states provide $10,000 to $15,000 for medical expenses incurred due to an auto accident. In Michigan, every auto insurance policy written provides unlimited medical and rehabilitation dollars for auto-related injuries. Replacement Services simply means that the accident is preventing you from doing your normal routine tasks such as mowing the lawn, shoveling the drive, getting groceries. Replacement Services provides dollars to pay for someone to do tasks that you are no longer able to due to an auto-related injury or disability.
- Property Protection (PPI): PPI pays up to $1,000,000,000 (the only limit available) for damage your vehicle does in Michigan to other people’s property such as buildings and fences.
- Limited Property Damage: Sometimes still referred to as ‘Mini Tort’ – Limited Property Damage was brought about with the ‘No Fault’ law. This coverage pays for damage you do to another insured who chooses NOT to carry physical damage on their vehicle. They can collect up to, but no more than $1,000 under this Limited Property Damage section if you were more than 50% at fault in an accident that damaged their vehicle.
- Uninsured & Underinsured Motorist Liability (UM/UIM): Uninsured motorist coverage is an optional coverage that compensates you for pain and suffering and excess wage loss if you are injured in a hit and run accident or if an uninsured motorist strikes you. Underinsured motorist coverage compensates you for any difference between what the court awards you for your extensive injuries or debilitation that were caused by an insured driver, and the maximum you are able to collect from that person and/or his or her insurance carrier.
- Comprehensive: Sometimes referred to as ‘all other than collision’ – Comprehensive includes fire, theft, vandalism, windshield and deer claims. Comprehensive deductibles are usually $250 or $500
- Collision: In Michigan we have 3 Types of Collision:
- Regular or Standard Collision: You pay your collision deductible ‘regardless’ of fault.
- Broad Form Collision: If you are less than 50% at fault, your collision deductible is waived.
- Limited Collision: If you are more than 50% at fault, you have no collision coverage at all. This option ONLY gives you coverage if you are LESS THAN 50% at fault, and your deductible will apply.
- Towing & Labor: Provides either a dollar amount or a miles towed limitation. Most policies include towing, delivery of gas, flat tire and lock-out assistance.
Rental Reimbursement: Provides a limit of reimbursement per day and per occurrence if your vehicle is involved in a ‘covered’ claim and is in the body shop being repaired. This will NOT pay if your vehicle just breaks down or has engine etc issues. Must be a covered loss; collision or comprehensive – for coverage to be activated.