Just because you have Michigan’s mandatory Personal Injury Protection (PIP) insurance doesn’t mean you will be covered for all the mishaps that could damage your car. PIP only covers your injuries and related expenses. It doesn’t pay for repairs to your car or property damage caused by an accident. For that, you will need to add coverages like collision, comprehensive, and liability car insurance policies.
Mandatory Auto Insurance
In addition to your PIP insurance policy, Michigan requires every licensed driver to purchase two policies that apply to the physical damage caused by an accident: Property Protection Insurance (PPI) and Residual Bodily Injury and Property Damage Liability (BI/PD).
Property Protection Insurance
If your accident causes damage to the surrounding environment, your property protection insurance may pay up to the first $1 million in damages. This could apply to anything from guardrails to grass, and can keep you from owing a lot of money to your local government or neighbors.
Residual Bodily Injury and Property Damage Liability
Michigan residents are required to carry insurance to pay for the serious injuries or death of other motorists. Your minimum policy must pay $20,000 per person and $40,000 for each accident. The policy will also cover up to $10,000 for damage your vehicle does while you are traveling out of state. If you don’t want to be personally liable after an at-fault injury, you might consider a higher policy limit.
Optional Insurance Policies
Collision Auto Insurance
After you’ve been in an accident, your collision car insurance policy covers the damage caused to your vehicle. That can include repairs needed when another car hits you, or when you hit a stationary object like a tree.
You will need to choose the total value of your policy and the size of your deductible. If you drive an expensive car, you will need more coverage. A higher deductible, on the other hand, will cut your monthly costs. In either case, make sure your savings together with your collision auto insurance policy will be enough to replace your car if it is totaled in a crash.
Comprehensive Auto Insurance
Not all damage is caused by an automobile accident. When a tree falls on your car, or you are hit by a deer or falling rock, your collision coverage simply does not apply. That’s where comprehensive auto insurance comes in. Your comprehensive auto insurance policy applies to damage caused when there is no accident. It also can cover damage caused by thieves or vandalism.
Michigan law doesn’t require you to carry comprehensive or collision auto insurance, but the lender on your auto loan probably does. Most lenders require you to carry enough insurance to cover the replacement value of your vehicle for the duration of your auto loan.
After a serious auto accident, it may be confusing what insurance policies apply to what damages. The expert auto accident attorneys at Christensen Law can help you understand your auto insurance policies and get the benefits you need to fix your car and cover your costs.