Michigan auto insurance can be daunting to understand. Here are a few things we recommend any driver in Michigan be aware of.
Liability limits greater than the state minimum-
State minimum limits can put you at risk of quickly exhausting your liability in the event of a covered loss
Mini-tort offers up to a $1,000 to other drivers in the event of a covered loss (at fault accident) that do not have collision coverage, or if they are subject to a deductible.
Broad form collision-
If you are found less than 51% at fault in a covered accident, your collision deductible is waived.
Excess medical coverage-
You should check with your primary health care provider to see if they pay out primary in the event of an auto accident. If so, request a letter stating as such and provide it to your agent. In some cases you can receive a discount for changing your auto policy from primary to excess medical coverage.
This is the mandatory Michigan Catastrophic Claims Association fee. It is part of the no-fault insurance currently employed by the state of Michigan. The MCCA fee was established in 1978.
Below are a few more things about Michigan No-Fault:
No-fault insurance originated form the perceived crippling of the United States legal system by auto claim litigation around the mid-60s. The no-fault concept was developed to eliminate or reduce litigation from auto claims in the court system. The Michigan no-fault system was adopted in 1973.
Under no-fault, claims pay out to you from your own insurer. They often reserve the right in your policy to subrogate against any third party without your consent. You waive the right to (or not to) litigate against a third party under a covered loss if the claim is submitted to the insurance company by signing an insurance policy.
Michigan no-fault consists of 3 parts:
PIP – Personal Injury Protection
PPI – Property Protection
BI/PD – Residual Bodily Injury and Property Damage Liability
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About the author:
Aaron Whitaker joined Whitaker-LaChance in 2014 as a Personal Insurance Customer Service Representative. He brought with him extensive customer service experience from working in a retail professional camera store and computer electronic store for three years in Chicago. Aaron manages all personal insurance placement, marketing, account service and claim management. His expertise is in working with our clients to make sure their insurance program takes care of them through all the changes in life. Aaron is a graduate of Kalamazoo Home School Association and attended Columbia College in Chicago, where he studied Graphic Art Design. He is an avid photographer and enjoys fishing.