The speed limit in Michigan on the highway is 70MPH. This is a very nice cruising speed, but honestly how many people actually go the speed that is posted or less? On average, must people drive at least 15 miles per hour over the speed limit. Admit it; you know you are probably one of them. The concern with driving at higher speeds is that you are subsequently at higher risk for having an accident. The faster you drive the quicker your reaction time has to be. Due to the fact that people will have an accident eventually, car insurance has become a mandatory requirement for all registered cars in the United States, though the laws differ from state to state. Michigan is a “No Fault” state. This means that your insurance will pay regardless of who is at fault in the accident.
Minimum Car Insurance Requirements in Michigan
The requirements are 20/40/10; as well you must have PIP. Okay, for the layman that sentence was probably as understandable as Greek, to you. This insurance terminology is easily explained. Knowing this information will help you shop for car insurance in Michigan.
Liability insurance is required. Liability insurance coverage is considered bodily injury and property damage protection. You must have a minimum of $20,000 for one person in an accident and $40,000 for all persons in the same accident. This coverage pays for the expenses stemming from medical treatment and/or funeral necessities.
Property damage is exactly what it sounds like. You need to have a minimum of $10,000 to cover the costs incurred to restore or replace property that is involved in the accident.
The last part of the requirement is PIP, or Personal Injury Protection. This is coverage for you, whereas the above is for the person or persons who were impacted by your car. Personal Injury Protection pays for your medical expenses immediately, without question up to the amount you have paid to have covered.
Michigan is another state that takes maintaining car insurance very seriously. If you fail to maintain your Michigan car insurance you can face up to 1 year in jail. You can also find yourself with a fine of $500. One or both penalties can be applied to you if you are convicted of not having insurance on your car. Most assuredly you will have both if you are in an accident without car insurance. A misdemeanor will be attached to you, and you will know have a criminal record.
With all of these penalties at risk, it really does not make sense to not maintain car insurance in Michigan. What do you gain if you lose your freedom? No argument could override the common sense of taking care of this very necessary issue.
Plus, if you do not have car insurance the amount of money you could end up owing to pay for the damages that you are responsible for could easily put you into bankruptcy court. This will affect not just you, but your loved ones as well. So keep your Michigan car insurance current, and maybe slow down a bit too.