Although you are not alone in not understanding the complexities of how auto insurance works in Michigan, there are myths and misconceptions out there about how our auto insurance works. Recently, some well-discussed facts were put out that can help to reduce the incorrect information and myths that surround auto insurance.
I can drive my car “a little bit” if I change my insurance to storage (comprehensive only)?
If you make the decision to park your car, or store it for the winter, you can reduce your coverage just to cover comprehensive damage while removing your liability and collision coverage. By doing this, you can reduce your monthly cost while maintaining coverage if something should happen to your car. However, it is important to know that even driving a car a little bit can put you at serious risk if something should happen to the car.
Be smart and be safe – if you are truly parking your car, you can reduce the coverage. But when you plan to drive the car again, make sure that you notify your insurance agent that you will be driving it again even if it is only for a day. It is better to be covered than not be covered.
If your car is stolen, often times you can have rental costs covered up to a specific dollar amount if you have car rental coverage on the vehicle. Even with this type of coverage, it may not be enough to cover the cost of the rental until your vehicle is recovered. It is important to understand the level of coverage that you have so that if something does happen to your car, you are prepared to pay expenses, such as an extended rental car, out of pocket.
Buying that red sports car automatically makes me pay higher premiums.
The long-standing myth that people who buy red cars pay higher insurance just is not true. Many insurance agents will not even ask the color of your car when you call for a quote, instead, they are more likely to ask the year, make and model of the car.
It is true though that some car brands and styles do have a higher insurance rate. Here in Michigan, sporty cars and even hybrid cars can be the most expensive to insure. Safety features play a big role in insurance costs especially in a state with unlimited medical coverage! A mini van full of curtain airbags will most likely get you a better rate than a convertible.
Michigan “no fault” insurance program only helps those without insurance.
There are many false facts surrounding the “no fault” debate that continues to wage war in Michigan. Help for drivers that are in a serious accident will continue with ongoing debates about the level of costs and changes to the primary system for those needing rehabilitation and extensive medical coverage. Coverage for those injured while driving includes medical and care costs associated with the accident; costs that may be viewed as higher in Michigan than in other states that do not have caps on the coverage given based on the definition of “no fault“.
Insurance coverage in Michigan is not mandatory.
There are three types of mandatory insurance in Michigan – personal injury protection, property protection and residual liability. Each of these levels of protection is different and covers different aspects of an accident or injury from a car incident.
- Personal Injury Protection (PIP) – This coverage pays benefits to the individual in the accident from their own insurance company.
- Property Protection – This coverage covers the damages you cause with your car.
- Residual Liability – This coverage gives the individual protection if they are sued by the other individual in an accident.
It is important to understand the truth about your own automotive coverage, and what you need as a driver when living in the state of Michigan.
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