What To Look For In Car Insurance In Mi
Every state has its own laws and regulations regarding auto insurance
. The State of Michigan is no exception to this rule. It is important that you understand and obey the laws governing car insurance in MI if you intend to drive as a resident of that state.Like Florida and other states, Michigan issues basic insurance requirements for all drivers. In Michigan, the laws regarding auto insurance in MI were revised in 1979 and titled the "Essential Insurance Act." This piece of legislature sets out the minimum insurance required by law and the rates that insurance companies are allowed to charge.
In Michigan, "No Fault" insurance is required by law. The two required insurances are called PIP (Personal Injury Protection) and PPI (Property Protection Insurance). The first covers injury to you or to certain uninsured non-drivers in your vehicle, such as your children. It covers no only injury, but also death and affords your family an income based on your income at the time of your death.
PPI insurance covers damage your vehicle causes to another's property up to a maximum of one million dollars. It does not cover damage done to moving vehicles, but does cover damage done to parked vehicles.
Another important aspect to Michigan auto insurance is that the state does not set insurance premium rates. An insurance company can change its rates at its discretion. This part of the legislature was adopted for the benefit of the consumer, because it encourages active and aggressive competition between insurance companies.
This aspect of the law in Michigan has been of tremendous benefit to MI drivers in recent years, thanks to the plethora of online car insurance comparison sites. With forty or more insurance companies competing for your online dollars, many of them offer insurance at greatly reduced rates. When you shop for car insurance online, you can save hundreds of dollars on your insurance per year.
There are certain standards that all insurance companies in Michigan must adhere to when setting their rates. These are generally risk assessment standards. While it stands to reason that high risk drivers will have to pay higher premiums than drivers with long term perfect driving records, the companies are still very competitive within the parameters of the law.
There are many ways you can save on your insurance thanks to the way the law is written in MI. For instance, you can receive handsome discounts if you get your home contents and auto insurance both from the same company. That's just one example among many.
Learn more about car insurance in MI online. You will probably be surprised by how much money you can save when you do an online comparison.
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