Find Out How How No-Fault Auto Insurance Works in Michigan
Michigan is a no-fault insurance state,so anyone who resides in the state must carry a no-fault auto insurance policy before they can get Michigan license plates. This is a legal requirement. Michigan no-fault insurance covers medical bills incurred by the driver,wage loss benefits and the damage incurred by third parties. Michigan auto insurers are required to cover the resulting liabilities regardless of who caused the accident. Read on to learn how no-fault auto insurance works in Michigan.
Basic Components of Michigan No-Fault Insurance
Michigan no-fault auto insurance has three basic components,as noted by -. The first is personal injury protection. When you are injured in an accident,the personal injury protection component of your no-fault policy will pay all necessary medical bills without any maximum limit. This means that you will not need to worry about medical bills when hurt in an auto accident.
The PIP component of your no-fault policy will also pay you up to 85% of the monthly income you could have earned if you were in good health. The maximum is usually $5,700 per month and will be paid for up to 3 years. In case you die as a result of an accident,your family will get the same monthly payment for 3 years.
The second component of Michigan no-fault insurance is property protection,also known as PPI. This covers damage to fences and buildings,as well as the damage to properly parked vehicles. The maximum coverage limit is one million dollars. This does not include damage to moving vehicles or improperly parked vehicles.
The final component of Michigan no–fault insurance is residual liability insurance. This component covers property damage and bodily injury sustained by third parties during an accident. It is there to protect the policyholder from lawsuits. It only kicks in under special circumstances. This may include getting involved in an accident in another state,getting involved in an accident in Michigan where a non-resident is involved,and any accident you may cause in Michigan where a person is killed,permanently disfigured or seriously injured. You definitley want to contact a- in these scenarios.
