Mandatory Auto Insurance For Drivers
It is mandatory to have MI auto insurance if you drive a car. This type of mandatory insurance is necessary to cover any damage to another car or person that may have been hurt in an accident. Who pays for damages is determined by using the no fault system. Other states may use the tort system.
For a no fault system the insurance company will pay for any damages no matter who caused the accident. If for some reason you are in an accident and feel that you should not have to pay then you can sue the person that was responsible for the accident.
In Michigan it is required that you have the mandatory insurance that is required by law. For bodily injury liability the minimum coverage you need is twenty thousand dollars for each person in the accident and the total coverage per accident you need is forty thousand dollars. The property damage coverage you need is a minimum of ten thousand dollars.
Property damage and bodily injury can amount to millions of dollars so this minimum coverage is just that the minimum. It is recommended that you have more coverage then the minimum so you will insurance for all costs. There are other types of insurance you can have to cover lost wages and medical bills. This type of insurance comes under personal injury protection insurance.
There are some things you can do to get good insurance coverage without paying a fortune in insurance premiums. You can buy several insurance plans from one company, such as bundling your home insurance, car insurance and more. All insurance companies will give you some kind of a discount when you do this.
Also having a good driving record will result in lower premiums. There are two things you can do to subtract points form your driving record if you have ever been in an accident or gotten a ticket. You can attend a driver’s education class or take a defensive driving class. The cost of these classes is minimal but you will save a lot of money on your insurance.
The type of car you drive will also affect your insurance. If it is very difficult to get parts for your car or only a limited amount of models were made then you can expect to have very high car insurance. Older cars that are more common and easier to fix will have much less expensive insurance.
By: Felix Fassbinder