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The mandatory no fault policy has three parts.
How does auto insurance work in michigan. It does not pay for any other damage to cars. Instead of bringing down the cost of auto insurance michigan has ended up with the highest rates in the nation primarily because of the unlimited lifetime medical benefits included in no fault. Your car does in michigan to other peoples property such as buildings and fences. All of these factors make michigans car insurance rates the highest in the country creating significant economic impacts across the state.
No fault automobile insurance is required by michigan law. Every car owner must buy certain basic coverages in order to register a motor vehicle in michigan. Michiganders pay on average 48 of their incomes for car insurance twice the national average of 24. No fault auto insurance will pay for all of a car crash victims necessary medical bills for as long as that persons injury or disability persists potentially for life.
Residual liability insurance bodily injury the no fault law protects insured persons from being sued as a result of an auto. It is against the law to drive or let your car be driven without no fault insurance. Personal injury protection pip. Ppi is meant to provide a quick and easy method of reimbursing others for damage your car has caused to a building fence wall or stationary car.
It will also pay for damage your car does to another persons properly parked vehicle. The mandatory limit is 1000000 for the entire policy.
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