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Michigan Car Insurance Coverage

Each state in the country has preset minimums for car insurance coverage that each motorist in its reign must adhere too. Michigan is among the states who have established their own minimum coverage limits. The forms and amounts of insurance in this state are slightly stricter than those of most other states. Each motorist in Michigan is required to maintain minimum Bodily Injury Liability limits of $20,000 per injured person up to a total of $40,000 per accident, and Property Damage Liability coverage with a minimum limit of $10,000 . These are referred to as the 20/40/10 coverage limits for the state. Each motorist is also required to maintain two particular sub sections of personal injury protection insurance: Medpay and Work Loss. The current average purchase price for an automobile insurance policy in Michigan is $2,229. By comparison, the national average is $1,794. Car insurance rates in Michigan have risen drastically over the last several years. The cost of a policy in 2009 is twenty six percent higher than it was in 2008.

It is required for each vehicle on Michigan roadways to clearly display the license plate number on the car, and you should ensure that you carry your proof of insurance cards in the glove box or console of your car. This little card is of high importance as it will prevent you from being issued a citation should you happen to be pulled over. Furthermore, according to Michigan state law, since late 2008 each insurance policy must include property protection insurance in the amount of $1,000,000. Michigan is currently the only state in the country that requires a motorist to maintain this type of coverage. Essentially, what property protection insurance does is protect the insured if he or she causes damage to parked vehicles or buildings. In addition to the aforementioned forms of insurance, you may be required to maintain collision insurance on your vehicle if you own a car with an outstanding balance on it.

Collision insurance primarily covers the cost of repairing damage that you car may sustain in accident. This form of coverage is not partial to fault. Minus your deductible, collision insurance will pay the remainder of the balance owed on repairs. In order to maintain reasonable premiums, you should be mindful of the deductible amount that you select when purchasing your policy. Generally, the higher your deductible is, the lower your monthly premiums will be. It must be an amount of money that you have ready, easy access to in case you are involved in an accident. This type of insurance may not be the most financially feasible form of insurance to maintain on an older automobile. The amount of money that an insurance company will put towards the repairs on your car is limited to the maximums dictated in your policy or the current market value of you car, whichever comes first. Generally, if the costs of repairs exceed seventy percent of the market value of the vehicle, an insurance company will elect to total the car.

The scenarios and situations that your collision insurance will cover are listed on the terms and conditions portions of your insurance policy. You should take the time to inquire of the events covered before purchasing a policy from an agent. This will allow you to determine of the benefit of the insurance will outweigh the financial expense to you. Again, this form of insurance is not required by Michigan state law. However, if you have a financed vehicle, it will be required by the lender in order to protect their investment.

There are always situations, such as acts of nature, which are beyond the control of a motorist. These acts of nature can include fires, tornados, or floods. If you strike a deer or another animal while you are driving, you can sustain serious injury to your vehicle. Your car can always be damaged by a crime, such as vandalism of vehicular theft. Any of the aforementioned acts can cause you sustain a serious financial loss. Comprehensive insurance will assist you in paying for the repairs to your vehicle should it sustain injury in any of the above scenarios. It will even pay to replace your vehicle if the damage renders it beyond repair. Comprehensive insurance acts as a supplement to collision insurance, and is an entirely optional form of coverage. However, it should be noted that there are lenders who may require you to maintain this form of insurance on a vehicle.

A less common but no less important form of insurance available to consumers is GAP insurance. GAP stands for guaranteed car protection insurance. It is also know as Loan/Lease Payoff Insurance. This form of coverage is optional. To purchase this coverage for your vehicle, you must already have collision insurance and comprehensive insurance on your car. You will be required to select a deductible at the time of your policy purchase, and your car must be currently financed by a lender. GAP insurance will protect you in the event that your car is damaged beyond repair, and it will reimburse you for the difference between the actual cash value of the vehicle at the time the accident occurs. This amount will exclude the deductible you chose and the vehicle's salvage value that may be retained by either you or the bank. It will also reimburse you for the difference of the greater monetary amount that you may owe on a leased car at the time of the accident. This amount may exclude finance charges, any excess mileage fees, wear and tear charges, or any other costs that may be assessed.

You may or may not be aware that there are several other options you can add to your insurance policy that may be of benefit to you. The first of these additions is rental car reimbursement. Essentially, what this rider does is provide money for the rental of a car is your vehicle is rendered immobile or while you vehicle is being repaired due to damages sustained in an accident. The second of these additions is called towing and labor. It is also referred to as emergency roadside service or the tow club. With traditional insurance providers, this addition is only available if a motorist also has comprehensive insurance and/or collision insurance. What this rider does is assist you in towing your vehicle if it breaks down on the side of the road. It can also assist you if you run out of gas or lock your keys in your car.

It is never possible to plan ahead entirely for the future. However, you can take steps to ensure that you will be well insulated in the event of a disruption. You will want to properly protect yourself and your assets while remaining in the confines of your budget. Receiving a quote on your automobile insurance will allow you to view the rates you will be charged from different companies on the policy you are interested in. The car insurance market is highly competitive in today's economy. Each provider is striving to obtain your business. This should increase the chances you have of finding adequate coverage at an affordable rate.


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