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Car insurance frauds increase the financial burden of insurance burden. This financial burden may trickle down to car insurance consumers and increase insurance premiums. In Michigan, if you report any suspected car insurance fraud, you will be rewarded. This article will detail out more information on Michigan car insurance, programs, laws, requirements and other related issues.
No-Fault Car Insurance
If you are a driver in Michigan, you are required to purchase a no-fault car insurance. This insurance coverage pays the cost of property damage and injuries resulting from your car accident. The required no-fault insurance in Michigan includes:
- Property protection
- Personal injury protection
- Residual property damage/bodily injury liability insurance.
Personal Injury Protection (PIP)
Personal Injury Protection covers the cost of medical expenses resulting from injuries you suffer after an accident. You can coordinate your PIP with your medical care health insurance. In this case, your health insurance will pay the cost of medical bills up to the limits of that policy. Your Personal Injury Protection will then pay the rest. If the injuries that you suffered keep you out of job for certain period, Personal Injury Protection will also pay up to 85 percent of what you could have earned before that accident.
Property Protection (PPI)
This type of Michigan car insurance coverage pays up to $1 million for property damage that your car causes. PPI insurance will also cover damages that your car causes to other cars if they were legally parked. PPI will not cover the damage made to moving cars.
Residual Property Damage/Bodily Injury
No-fault insurances are meant to protect you from legal actions that may be taken against you after accidents, unless:
- You cause an accident that led to death or serious injuries
- You are involved in an accident with drivers with cars not registered in Michigan or with someone who is not a resident of Michigan
- You are a resident of Michigan involved in an accident in another state
- You are 50 percent or more at fault in an accident that causes uninsured damages to another car.
If a legal action is taken against you after one of the above instances, Residual Property Damage/Bodily Injury insurance will pay for the injuries and damages caused, and also cover the cost of hiring an attorney. The minimum amounts of Residual Property Damage/Bodily Injury insurance required in this state include:
- $20,000 for death or injuries to an individual
- $40,000 for death or injures per accident to multiple people
- $10,000 for property damage in another state.
Violation Fines and Penalties
According to Michigan car insurance laws, if you are caught driving without car insurance and found guilty, you will face the following penalties:
- A fine of $200 to $500 or up to 1 year in jail or both
- 30-day or more driver's license suspension.
Optional Car Insurance Coverages
Your no-fault insurances alone cannot cover all costs of damage and injuries that your car causes. You need additional insurance coverages. These optional insurance coverages help you cover additional costs resulting from accidents that your car causes. Optional car insurance covers in Michigan include: collision or comprehensive insurances or other applicable car insurances.
The 3 Types of Collision Car Insurance
Limited Collision Coverage: If you are found less than 50% at fault in an accident involving your car, your insurer will pay the cost of repairs, but first you need to pay your deductibles. If you are 50% or more at fault in an accident involving your car, your car insurer will not be required by Michigan car insurance law to pay for the repairs. You will be responsible for your car repair. Standard Collision Coverage: Your Michigan car insurance company will pay for repair costs after your deductible. Broad Form Collision Coverage: If you are less than 50% at fault, your car insurance company will pay the cost of repairing your car. You will not have to pay the deductible. If you are 50% or more at fault, your car insurance company will pay for repairs.
Other Car Insurance Coverages
You need additional Michigan car insurance covers. These are some of the optional insurance covers to consider when shopping for car insurances:
- Collision – Insurance cover that helps pay for damages made to your car after an accident
- Comprehensive – Insurance cover that pays for damages resulting from all accident related events such as fire, floods etc
- Rental car coverage
- Uninsured/underinsured driver coverage
- Towing and labor coverage.
Note: Collision and comprehensive coverages are not mandatory, but they are required if you are planning to finance your car through lease agreement or loan.
Michigan Auto Insurance Placement Facility (MAIPF)
The Michigan Auto Insurance Placement Facility (MAIPF) was established by to help people or give people more information regarding car insurance. This body will help you get car insurance if you are finding it hard to get one in an open market. If you are considered a high risk driver and you are being denied for insurance cover, you can apply for insurance cover through MAIPF.
The Michigan Assigned Claims Program
The Michigan Assigned Claims Program (MACP) is a private body that helps injured accident victims to receive personal injury protection if they were injured in a car without insurance. Michigan Assigned Claims Program will cover the medical costs after an accident. If you are the owner of uninsured cars and you get an accident, you will be required to pay MACP back. If you are uninsured driver, you can visit MACP website if you intend to file a claim after an accident.
Help Eliminate Auto Thefts (HEAT)
MAIPF has a run program known as Help Eliminate Auto Thefts (HEAT). This program deals with cases of car theft and car insurance fraud. If you suspect any car theft issues or car insurance fraud, you can report them online through the HEAT website or by phone using hotline (1-800-242-HEAT). The following are some of the rewards you can get:
- Up to $1,000 if the report results in an arrest of suspected fraudsters or suspected car thieves
- Up to $10,000 if the report leads into arrest of suspected members of car theft rings
- $2,000 if the report leads to the arrest of suspected carjacker.
Most Stolen Cars in Michigan
Driving a car that is always targeted by thieves may increase your car insurance rates. According to www.nicb.org, the 2013 most stolen car in Michigan include:
- Chevrolet Impala
- Ford Fusion and Ford Explorer
- Dodge Caravan.
- Ford Taurus
- Chevrolet Pickup (Full Size)
- Chevrolet Malibu
- Jeep Cherokee/Grand Cherokee
- Pontiac Grand Prix
- Ford Pickup (Full Size).