New Driver Insurance Questions
Yes. State law says you must get at least the basic no-fault coverages. If you don't, you can be fined up to $500 and be put in jail for as long as a year.
A driver's insurance rates are based on how likely they are to have an accident and/or have high-cost claims. Since young drivers usually have more crashes and expensive losses, they have higher insurance premiums.
In most cases, yes. Before you get behind the wheel, you must notify your insurance company or agent to update their policy and add you to their coverage.
Premiums are based on a variety of factors including:
- Age or years of driving experience
- Your driving record
- Number of miles you drive
- Type of car
- Where you live
Your agent will discuss these with you and other cost factors that will impact your premium.
Here are ways you can help keep your rates as low as possible:
- Drive carefully
- Cover fewer miles
- Select higher deductibles
- Consider the vehicle you're driving
Your agent will review your policy to find eligible discounts and provide the best savings opportunities available.
Common Insurance Questions
Michigan's No-Fault Insurance is required by law and took effect in 1973. After an accident, generally your no-fault insurance policy covers you (medical expenses, wage loss, replacement services, etc.) and the other driver's policy covers them.
The basic no-fault policy requires all Michigan motorists to have at least three policy coverages. These mandatory auto coverages are Personal Injury Protection, Property Protection, and Residual Liability.
Insurance companies offer several optional coverages as part of the no-fault insurance policy. You may want to consider having more coverages such as Comprehensive and Collision or UM and UIM.
