Michigan No-Fault Auto Insurance Considerations

To illustrate the need for auto insurance in Michigan, consider these facts presented by authorities in the state. The incomplete records for 2008 indicate that the high likelihood for young drivers aged 16-24 years old to be involved in a traffic accident, a number of them fatal. However, older drivers are still prone to accidents, especially considering their frailty. Those aged 65 and older are especially vulnerable to deaths resulting from a road accident. Because the nation as a whole expects to see an increase in the percentage of older drivers in the next decade, there is a recognized imperative to adapt to their changing driving needs. A number of accidents reported in the state are also due to mishaps caused by crashing into deer. Though fatalities are low, there are still considerable injuries caused by this event.

The scenarios described above are several of the major considerations and factors driving the demand for auto insurance in Michigan. Because statistics bears the indication of younger drivers figuring more in road accidents, auto insurance policies for this age segment are also considerably more expensive. To adapt to the changing needs and abilities of older drivers, several insurance companies have offered programs that were developed in partnership with the American Association of Retired Persons, as well as local agencies and departments.

Michigan’s auto insurance law is considered efficient and effective, largely because of the implementation of the no-fault system. Under this system, insurance companies are required to cover medical expenses and other related costs irregardless of who is at fault in the first place. Because of this, policyholders can avail of benefits without delays or the need for lawsuits. Furthermore, this system includes the cost of rehabilitation as well as lost compensation for up to three years. Unless the accident results in death, serious disability, or bodily impairment, lawsuits for associated damages are not permitted in the state.

Each licensed driver in Michigan is required to procure three different coverage. The personal injury protection pays for medical bills, lost wages, and funeral expenses, whichever is application. There should also be coverage for property protection, used to pay for damages cause by the policyholder’s car on the property of others, except on a moving vehicle. The last coverage is for residual liability, which is applicable if the policyholder is found to be legally responsible for death or serious impairment. Apart from the required coverage, there are also optional coverage that policyholders can avail of. These include coverage against theft, fire, collision with an uninsured driver, or when the policyholder cannot use his vehicle for a period of time.

Though most auto insurance policies are quite affordable, there are also variation of rates depending on several factors and consideration. Apart from the age of driver, driving record is also considered as well as the place of residence. This is because those living in urban areas are found to be more likely to figure in auto accidents than those normally living and driving in suburban areas. The type and uses of the vehicle can also influence the cost of insurance. Local crime rate, social inflation, and the overall cost of medical care can also cause a particular policy to become more expensive.

Because the state implemented unlimited coverage for medical expenses, it also formed the Michigan Catastrophic Claims Association (MCCA). This non-profit organization reimburses insurance companies for benefits it gave to policyholder beyond the threshold of $420,000. All insurance companies offering auto insurance must be a member of this organization and that the loss incurred by MCCA must be distributed among its members. In closing, it is possible for a potential policyholder to gain savings in obtaining auto insurance. What they must keep in mind is to have a vehicle known for its good performance and value, select a policy with higher deductible, keep a good driving record, and inquire about availing of several discounts offered. Discounts are possible for cars with anti-theft devices, inclusion of two or more cars in the policy, and having good credit history.

We help our Michigan based customers in Detroit, Grand Rapids, Warren, Sterling Heights, Ann Arbor, Lansing, Flint, Kalamazoo, MI and other great cities in The Wolverine State lower their premiums and save money on all types of insurance. Use the form above to find low cost auto insurance, homeowners insurance, medical insurance, life insurance or long term care insurance. Using our Michigan insurance agent and broker network, you can compare rates quickly from the comfort of your home.

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