Bodily Injury and Property Damage (BI/PD)
The first section is bodily injury and property damage; this coverage will protect you and your assets if you are sued as the result of an auto accident. In Michigan you can be sued if you injure someone with your vehicle causing a substantial injury to the other driver, passenger or pedestrian. This coverage also covers the cost of defending you in any suit for damages and also pays for the cost of the defense in addition to your liability limit.
The state requires you to carry these minimum limits:
• $20,000 per person who is hurt or killed in an accident
• $40,000 for each accident if several people are hurt or killed
• $10,000 for property damage in another state
These limits are usually shown as 20/40/10. If there is a lawsuit against you the court could award a judgment in access of these limits this will usually depend on the severity of the accident and your assets that you have available. It is recommended that you carry higher liability limits than are required. You should discuss this with a local Michigan agent to discuss what limits might be right for you, usually these limits can go as high as 1 million/1million/1 million.
Property Protection Insurance (PPI)
No fault auto insurance will pay up to $1 million for damages that you cause in Michigan to another party’s property, such as a parked car, building, fence or sign post. If the damage is caused out of state the limits will be determined by what you selected from the property damage limit that you selected.
Personal Injury Protection (PIP)
This part of no fault policy pays all necessary medical costs if you are hurt in an auto accident. Michigan is the only state in the country that offers unlimited medical. Michigan is able to do that by adding an assessment (MCCA) to all Michigan drivers’ policies as of 2010 this.fee was $124.89.
Lost wages are also paid if you are unable to work due to accident related injuries. PIP will pay up to 85% of your gross income for up to 3 years. This limit on this coverage varies according to your salary and is capped at maximum payout limit as set by the state as of 2010 this limit was ($4878) this figured is updated every October.
Survivors’ payments this is an amount that can be paid to the survivor based on the assessment of the claim if the insured dies as a result of the car accident.
Funeral expenses PIP helps pay for related funeral expense if the covered individual dies as a result of the car accident. This limit is capped at $1750 per person.
Replacement services PIP will pay up to $20 per day for 3 years if you need help performing household duties or other tasks due to accident related injuries.
These coverage’s are the minimum required by law for all Michigan registered vehicles.
These are the miniumum coverages required for no fault in Michigan if you would like to see post on all Michigan coverages go to Understanding Detroit Insurance.
Discounts available for your Detroit Michigan auto insurance policy
One of the biggest discounts that most Michigan carriers offers is Multiple Car Discount- If you are living with a relative and both insure your cars with the same company you should be able to qualify for this discount.
Another great discount that is offer is multiple line discounts- If you carry the multiple policies with the same carrier, such as car and home, you will be eligible for this discount.
Young Driver Programs
Most Carriers offer some form of young drivers, driver education or good student programs that will help if you have a young adult driver in your household.
Misc. Detroit Auto Insurance Discounts
Carriers offer a variety of lesser discounts that can also provide savings for your auto insurance such as: anti-theft discount, low income, low driving mileage, senior discounts, low income, single drivers and good driving record.
Visit a local auto insurance agent online or call 248-888-1134 to get a competitive auto insurance quote and to see if you are getting all the discounts that you are entitled to.