Michigan Auto Insurance is Mandatory
The state of Michigan requires all motor vehicles to be insured and there are state requirements for the basic Michigan auto insurance vehicle owners must carry. The lack of obtaining insurance known as no fault car insurance can result in a misdemeanor conviction and fines between $200 and $500 dollars in the event of an accident, along with up to one year in jail. Vehicle owners that do not carry Michigan auto insurance risk having their drivers license suspended for 30 days or until the court is provided with proof of insurance.
In the state of Michigan there are three parts to the no fault insurance policy:
1 - Personal injury protection, this will pay medical costs if the owner is injured in an accident.
2 - Property protection, this part of the policy covers damaged property including buildings and fences up to $1 million dollars.
3 - Residual bodily injury and property liability insurance, this is to cover the cost of defense and damage when a driver is found liable as high as the limits of the policy. The minimum limits are $20 thousand a person injured or killed in an accident, $40,000 if more than one person is injured or killed and $10,000 property damage.
4 - Michigan auto insurance requirements for no fault is a liability type of insurance and for a vehicle owner that has a bank, credit union or finance company loan will be required to carry full coverage insurance until the loan is satisfied.