Michigan Auto Insurance Laws, Facts, and Tips
In the state of Michigan, auto insurance is the law. Michigan’s mandatory auto insurance is called Michigan No Fault Insurance. Michigan’s no fault system has been in place since 1973. No fault means, if you are involved in an accident, it doesn’t matter who is at fault. Your auto insurance covers you, and the other party’s auto insurance covers them.
Michigan No Fault Insurance applies to owners of passenger vehicles, light trucks, vans, and motorcycles. In Michigan, owners of these types of vehicles are prohibited from registering their vehicles until the minimum liability auto insurance requirements have been met. Michigan insurance laws state that all drivers must carry ,000 bodily injury liability for one person, ,000 bodily injury liability for all injuries in one accident, and ,000 property damage liability (20,40/10). Because Michigan’s minimum requirements are low, most insurance providers will recommend purchasing higher amounts than the bare minimum and/or uninsured/underinsured motorist coverage.
In addition, proof of liability insurance must be carried in the vehicle at all times. Once you obtain auto insurance from an agent or company licensed to do business in the state of Michigan, you will receive a Michigan No Fault insurance certificate. This certificate must be carried in the vehicle at all times. Under Michigan law, a la enforcement officer can request proof of insurance for any reason at any time. If you fail to provide proof of auto insurance upon request, the Secretary of State will suspend your driver’s license. Your driver’s license cannot be reinstated until you provide proof of insurance. And according to Autoinsurancetips.com, until proof of insurance is shown, the Secretary of State will not renew, transfer, or replace your vehicle’s license plate. The cost to have you license reinstated could cost up to plus any other fees required by Michigan law.
When you are ready to begin shopping for Michigan auto insurance, you should have the following information on hand: car year, make and model, how much you drive, and prior insurance coverage (if applicable). In addition, auto insurance agents will ask a series of questions to help assess risk. These include: age, gender, where you live, employment, number of drivers, and driving record. In addition, many Michigan auto insurance providers will ask you to provide a social security number. Insurance companies use credit history to help assign an insurance risk score. Auto insurance companies believe that individuals with a low credit score are more likely to file claims. In some cases, a low credit score will cause higher rates or the insurance company may refuse to extend an insurance offer altogether.
In 2008, Michigan residents paid an average of 0 per year for auto insurance making Michigan the 13th most expensive state in the nation for auto insurance. At ,140 per year, the most expensive place in the U.S. for auto insurance is the District of Columbia, followed by New Jersey at ,104, and Louisiana ,096.
For more information about Michigan Auto Insurance, the following links may be useful:
Michigan Auto Insurance - Autoinsurancetips.com
http://www.michigan.gov/sos – Department of State, Michigan
No-Fault Insurance Explained: What Is It? What Does It Mean For You? – Autoinsurancetips.com
Written by wleibowitz
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