When it comes to
auto insurance in Michigan, understanding the right coverage options is crucial. With
high medical costs and unique no-fault laws, choosing the
right policy can protect you from financial disaster after an accident.
So, what are the
three most important auto insurance coverages you should have in Michigan? Let’s break them down.
1. Unlimited Personal Injury Protection (PIP) Coverage
Michigan’s auto insurance system includes Personal Injury Protection (PIP), which covers medical expenses, lost wages, and rehabilitation costs after an accident—regardless of who was at fault.
Why Choose Unlimited PIP?
Many drivers are tempted to choose lower PIP limits to save on premiums, but this could leave them exposed to significant financial risks.
- The
average cost of a hospital visit after a car accident is
$57,000 (Source).
- Ongoing medical care after a severe accident can cost hundreds of thousands—or even millions—of dollars.
With
Unlimited PIP, you do not have to worry about running out of medical coverage.
It provides the highest level of protection and ensures your medical bills are covered for life.
Always opt for
Unlimited PIP. The extra cost is well worth the peace of mind and financial security it provides.
2. Bodily Injury Liability Coverage
If you cause an accident that injures another driver, passenger, or pedestrian, bodily injury liability coverage pays for their medical expenses, legal fees, and potential lawsuit settlements.
Why Higher Limits Matter
While Michigan requires a minimum of $50,000 per person and $100,000 per accident, these limits are often far too low to cover serious injuries.
Consider this:
- 43% of auto accidents result in injuries (Source).
- A severe accident could lead to
lawsuits and medical claims that exceed $100,000, leaving you responsible for the difference.
Higher coverage limits help protect your assets—whether that’s your home, savings, or future wages—if you’re sued after an accident.
Always start with
AT LEAST $250,000 per person and $500,000 per accident for bodily injury liability. And depending on your situation, higher limits might make more sense as they provide better protection against lawsuits and financial loss.
3. Uninsured & Underinsured Motorist Coverage (UM/UIM)
Even though Michigan requires drivers to have insurance,
many drivers don’t carry enough coverage—or any at all.
Why You Need UM/UIM Coverage
- Michigan has a high number of uninsured drivers. Some estimates suggest that 1 in 4 drivers on the road is uninsured.
- Even insured drivers often carry
state minimum limits, which may not be enough to cover serious injuries.
- Medical costs and lost wages can quickly add up, especially if you're unable to work after an accident.
Always match the coverage amount that you carry for Bodily Injury Liability with this coverage, so at least
$250,000 per person and $500,000 per accident in
Uninsured/Underinsured Motorist Coverage to protect yourself from financially devastating accidents.
Protect Yourself with the Right Coverage
Michigan’s auto insurance laws are unique, and choosing the right coverage can mean the difference between
financial security and financial ruin after an accident.
Need Help Choosing the Right Auto Insurance?
I help Michigan drivers find the right coverage
at the best value. If you’re unsure about your policy or want to explore better options, reach out today!
📞
248-459-3045
🌐
info@yourmichiganinsurance.com
Stay safe on the road and make sure you’re properly protected!
