Everyone grumbles about having to pay that monthly payment for auto insurance, but you certainly do not want to be caught driving without it. It can mean big fines, license suspensions and even jail time. That is not to mention the huge financial risk you are taking in driving without protection in case of an accident.
Simply running up to the local convenience store could still mean an unintended accident with serious property damage, personal injury or even death. This is why they are called accidents. They are rarely planned. Can your estate withstand a serious lawsuit from injuries, damages or the death of another driver or passenger? Better not take the risk.
In the state of Michigan you are required to have and maintain a no-fault insurance policy. It covers any damages and injuries caused by a car accident no matter who is at fault. It has to include coverage for personal injury protection (PIP), property protection and residual bodily and property injury.
The PIP will cover your medical expenses from any accident you are involved in. You can attach your personal health insurance to the PIP so that it pays up to the maximum policy amount and then your PIP will kick in and pay the remainder.
If you are unable to work then the PIP will cover your salary up to 85%, but it is limited to $5,282 dollars per month for a maximum length of 3 years at this current time. This amount is different every year, so you will need to check on current statistics.
The basic property protection coverage or PPI should pay up to $1 million dollars on property, such as homes or businesses. It will even pay for cars that are legally parked and damaged in the accident.
Residual Damage Liability Coverage
The residual bodily injury (BI) and property damage (PD) is designed to protect you from lawsuits unless:
- You cause a serious bodily injury or death accident
- You have an accident with a non-Michigan resident with a non-Michigan registered vehicle
- You are involved in an out-of-state accident
- You are higher than 50% at fault. You can then be sued for up to $1,000.
BI and PD liability insurance covers the cost of your defense and pays for any damages up to policy limits. In Michigan the minimum coverage you have to carry is:
- $20,000 for death and injury
- $40,000 for multiple injuries and death
- $10,000 for out-of-state property damage
Consequences of No Insurance
Being caught without any auto insurance in the state of Michigan can be a very expensive lesson. You can be convicted of a misdemeanor that involves a fine anywhere from $200 to $500. It can also mean up to a year in jail. It really depends on whether it is your first time, or you are repeatedly caught without insurance. It can also involve a 30 day driver’s license suspension, or at least until you can provide proof of current and valid insurance.
These penalties all pale in comparison to the possible consequences of being sued from injuring or killing someone in an accident. Being sued for property damage without the protection of a Michigan auto insurance policy can be devastating. You can lose your home, business and even personal belongings. It is simply a bad move to make.
Paying a monthly payment without ever filing a claim may be irksome at times, but think about all that it protects you and your family from. You cannot predict when and where an accident will happen. Stay protected with the coverage that you need. You may not need it often, but will be glad when you do and you have it available.