Common Insurance Questions
What is No-Fault Insurance?
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.
What Insurance Coverages are Mandatory?
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.
What Coverages Are Optional?
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.
New Driver Insurance Q & A's
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.
Yes. Before you get behind the wheel, make sure you notify your insurance company or agent.
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
Here are a few suggestions to keep your rates as low as possible:
- Drive carefully
- Drive fewer miles
- Select higher deductibles
- Consider the vehicle you're driving
- Ask your agent about special discounts