An appropriate and carefully-selected auto insurance policy is essential to guard against financial disaster in the event of a collision. However, the right type of coverage is not always obvious, particularly in light of the range of options available and the high-pressure tactics sales agents often employ to get drivers to pay more for coverages they don’t need. Furthermore, it is vital to remain in full compliance with Michigan law in this realm, which can often be complicated and confusing. It is common for motorists across the Great Lakes State to feel a bit lost when it comes time to buy a policy, but the information that follows should prove helpful in making an informed decision.

Michigan No-Fault Auto Coverage

Michigan law mandates that vehicle owners have a no-fault insurance policy in place. Anyone who operates a vehicle without this type of coverage can face significant consequences if an accident occurs or if they are stopped by police. No-fault coverage simply means that the policyholder's own carrier will pay for certain categories of loss following an accident, regardless of who was to blame.

In Michigan, a no-fault policy will pay all medical expenses stemming from the accident, upwards of 85 percent of lost wages, and other related expenses such as home accessibility modifications, home care, and more. A policy of this sort will also pay for damage caused to other people's property outside of vehicles.

Collision Insurance in Michigan

Considering that a no-fault policy will not pay for vehicle repairs after a crash, drivers may wish to think about purchasing collision coverage. Numerous options for collision coverage are available, including coverage that applies only if someone else was at fault and coverage that requires payment of a deductible before insurance can fulfill a claim. Lenders who provide auto financing will likely mandate that collision coverage be in place, but those with older cars not subject to a lien may not find collision coverage to be worth the cost.

Underinsured and Uninsured Motorist Insurance Coverage

While there is a statutory provision in Michigan that requires drivers to carry no-fault coverage, there are always a minority who thwart the rules. Further, many motorists will only purchase a bare-bones policy in an effort to cut costs. If a driver experiences substantial harm, and the responsible driver's insurance is nonexistent or insufficient to cover the resulting losses, underinsured or uninsured motorist coverage may turn out to be truly invaluable.

Choosing the right insurance coverage and terms can be complicated and confusing; however, making an informed decision regarding insurance is crucial for financial security as well as peace of mind for any driver. Because of the importance of complying with Michigan law when choosing insurance coverage, it may be useful to seek the help of an experienced personal injury lawyer or insurance lawyer who can help to determine what plans provide comprehensive and legally compliant coverage with your best interest in mind.