Michigan Auto Insurance 101: What Coverages Are REQUIRED In The State of Michigan?

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First, Michigan requires Bodily Injury Liability coverage, which covers costs if you're involved in an accident and someone is injured. The state minimum is $50,000 per person and $100,000 per accident, but I always strongly recommend choosing at least $250,000 per person and $500,000 per accident, also known as 250/500 limits.

These higher limits provide more protection in case of a serious accident. In fact, if you choose anything lower, you'll need to sign a waiver acknowledging that you're accepting increased risk. And depending on your financial situation, carrying limits higher than 250/500 may also be a good idea.

Next, let's talk about Personal Injury Protection coverage, or PIP. In Michigan, PIP coverage is crucial because it covers your medical expenses if you're injured in an accident, regardless of who is at fault. You have a choice of limits, but I always recommend selecting Unlimited coverage. It might cost a bit more upfront, but it ensures that you won't face huge medical bills down the road.

Lower limits might save you money in the short term, but they can leave you vulnerable to significant financial risks if you're involved in a serious accident.Because in Michigan, your auto insurance will provide coverage for your medical expenses if you are injured in an auto accident - not your health insurance

Another key coverage is Uninsured and Underinsured Motorist coverage. This protects you if you're hit by a driver who either doesn't have insurance or doesn't have enough to cover your injuries. Here too, matching your Bodily Injury Liability limits of 250/500, or to higher limits if you have them, is typically the best way to go.

Choosing lower limits for Bodily Injury, your Un & Underinsured Motorist coverage or opting for anything less than Unlimited PIP may save you a little now with your premium, but it could cost you much more in the event of a serious accident. And these coverages are usually the least expensive part of the policy too.That's why I will always recommend these higher limits to my clients.

It's also important to consider Collision and Comprehensive coverage. These are optional but highly recommended, as they cover physical damage to your vehicle. Collision covers damage from accidents, while Comprehensive covers things like theft, vandalism, or natural disasters. If you have a loan or lease on your vehicle, these coverages are usually required by the lender or leasing company. But even if they're not required, having them in place is a smart move to protect your investment in your vehicle.

If you need help or have questions about your insurance, please feel free to reach out!

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**DISCLAIMER: THIS IS NOT LEGAL ADVICE. USE AT YOUR OWN DISCRETION. THIS VIDEO INCLUDES MICHIGAN INFORMATION ONLY.