Auto
insurance protects you against financial loss if you have an accident.
It is a contract between you and the insurance company. You agree to pay
the premium and the insurance company agrees to pay your losses as
defined in your policy.We offer competitive premiums and complete coverage for all your vehicles. Coverages include:
- Preferred and standard auto
- High risk auto
- Motorcycle
- Motor homes
- Camping trailers, travel trailers, utility trailers
- Recreational vehicles: all-terrain vehicles, trail bikes, snowmobiles, golf carts, mini bikes, dune buggies, jet skis and wet bikes antique, classic or special-interest cars
In addition to the security that insurance provides to you and your
family, Michigan law requires no-fault insurance. Every registered
vehicle must be insured. If you own a car and you drive it, or allow
someone else to drive it without basic no-fault insurance, you can be
sued and held personally liable. You may also be convicted of a
misdemeanor and fined from $200 to $500, or put in jail for up to one
year, or both. The court may also order your license suspended for 30
days or until you are able to provide such proof. In addition, if you
are uninsured you may be held liable for all damages that result from an
accident while uninsured, including your own.
What auto insurance coverage you have to purchase
There are three basic parts to a no-fault policy that must be purchased and carried on every vehicle. They are:
- Personal Injury Protection (PIP) - Personal injury protection (PIP) pays all necessary medical costs if you are hurt in an auto accident.
- Property Protection (PPI) - Property protection (PPI) pays up to $1 million for damage your car does in Michigan to other people's property, such as buildings and fences.
- Residual Bodily Injury and Property Damage Liability Insurance (BI/PD) - Residual bodily injury and property damage liability (BI/PD) pays your defense costs and any damages you are found liable for as the result of an auto accident, up to the limits of the policy. The minimum limits of coverage that everyone must purchase are $20,000 for a person who is hurt or killed in an accident, $40,000 for each accident if several people are hurt or killed, and up to $10,000 for property damage in another state. These minimum limits are often referred to as 20/40/10. You can also purchase additional limits of BI/PD coverage, which will be explained in the next section. (Source: http://www.michigan.gov/difs)
