Michigan is a state that has a lot to offer. Whether you are moving to Michigan for a new job, to be closer to family, or to enjoy its outdoor recreation, it is very important to understand its car insurance laws. The biggest surprise you are in for when moving to the state is the cost of car insurance. When compared to other states in the US, you could possibly be looking at double the cost for the same liability coverage and physical damage coverage. The difference lies within the medical coverage.
Michigan is the only state to make unlimited medical coverage mandatory for all insured drivers and passengers. The coverage is usually itemized on Michigan policies as the MCCA Fee. It is an abbreviation for Michigan Catastrophic Claims Association. The cost of the MCCA Fee is often changing, but for now it is $186 per vehicle per year.
Learn more about the MCCA Fee:
Once you get past the high cost of Michigan’s medical coverage, you will also need to get used to its other no-fault laws. In Michigan, the no-fault laws extend to the physical damage of the vehicle. Meaning your policy covers you regardless of who is at-fault. There is no going after the at-fault driver for full compensation. In this state, the most you can get from an at-fault driver’s insurance policy is $1000, which we call a mini tort claim.
Find out more about mini tort claims and not-at-fault accidents:
So, let me explain a little bit more about how your policy will cover you in a collision. Michigan offers three types of collision coverage. Broad collision is the best and will cover your vehicle without a deductible as long as the accident is not your fault. A deductible will apply to an at-fault accident. Standard collision requires a deductible regardless of who is at-fault (read more about mini torts). And limited collision only provides coverage if you are not-at-fault, but no deductible is required.
More on collision coverage:
- What is Broad Collision?
- What is Standard Collision?
- What is Limited Collision?
- What if I Do Not Have Collision Coverage in Michigan?
Don’t let the cost of Michigan car insurance get you down. Just think, if you ever are in a serious car accident, this is the best state to be in for help with medical expenses. Being able to rely on your own insurance company for repairs after a collision can also be a perk. This way you rarely have to deal with another person’s insurance company. You can choose the company that has the best claims service and know what to expect after a loss.
Help saving money on car insurance:
- The Ultimate Guide to Cheap Car Insurance
- Is Michigan’s State Minimum Coverage Right for Me?
- How Often Do You Shop for Car Insurance Quotes?