If you are considering whether investing in Michigan car insurance is really necessary, then you need to be aware, that it definitely is. In the state of Michigan all vehicles are required to be covered under a no-fault insurance policy. This is different to many states that act under a fault policy regime. The difference between these policies is that with no-fault car insurance you are responsible for yourself and only yourself.
What is a No-Fault Insurance Policy?
A no-fault insurance policy will provide you and your family with protection in case of an auto accident. For example, if you or members of your family require medical assistance following an accident, they will be able to cover the costs of the medical bills via an insurance claim. You may also be able to claim for further expenses such as loss of earnings.
What Happens If You Do Not Insure Your Vehicle?
If you own and operate a motor vehicle without having the appropriate insurance then you will be held liable for any accidents or other occurrences. For example, if you are involved in car accident, you will be forced to pay compensation to the other party involved, and you will also be liable for your own expenses. Furthermore, it is highly likely that you will be sued and even convicted of a misdemeanor. If you are unable to provide proof of insurance when asked by a state official then it is probable that your license will be revoked for at least 30 days. Driving without insurance is a serious crime and it could even affect your future as a driver. Even when you get your license back you may find it difficult to find insurance companies willing to take you on.
What is the Basic Insurance You Will Need?
A basic Michigan car insurance policy form is comprised of three parts.
- Personal Injury Protection
This will cover any medical expenses that are incurred as a result of a car accident. These expenses can also include loss of earnings and replacement services.
- Property Protection
This will cover the cost of any compensation you might need to pay out if your vehicle has damages someone else’s property.
- Residual Bodily Injury and Property Damage Liability
However, remember that if you are found to be at fault following a car accident in which another was seriously injured or killed, then this insurance will cover any legal fees as well as compensation to the victim.