Michigan drivers may benefit from purchasing an appropriate amount of auto insurance. Accidents happen, and collisions could leave drivers or passengers with property damage and injuries. An auto insurance policy might cover any losses due to negligence or even incidents not involving fault. Understanding current laws regarding auto policies might help a policyholder understand coverages and claims better.
Stay on top of state insurance laws
Laws related to auto insurance are subject to updates, changes, revisions, and even repeals. Relying on an auto insurance provider to inform you of any changes might not be adequate. Going direct to a government source may provide detailed information about current auto insurance laws.
A Michigan government website details the state’s no-fault insurance rules. Per state law, no-fault insurance coverage must include personal injury protection (PPI), property protection insurance (PPI), and residual liability insurance (RLI).
A consumer may purchase a policy that includes additional coverage. Comprehensive and collision insurance may pay for repairs outside of the above-mentioned coverages. For example, a comprehensive claim could financially cover a loss due to theft.
Understanding the rules and limits
Michigan laws provide details about coverage rules and possible limitations. Some may realize that personal injury protection covers lost wages, but they might not know it only covers up to 85% and is subject to annual revisions. RLI coverage only comes into play under strictly defined circumstances, such as when someone is killed in a car accident.
Filing an insurance claim allows someone to take advantage of the purchased coverage. Insurance providers may try to settle for lower amounts, and receiving a better offer might require intense negotiations.