An insurance mi policy is a risk transfer policy. For a small upfront premium, someone else takes responsibility when things happen and bills need to be paid. Michigan State law requires all automobiles and drivers have auto insurance. Most homes being purchased are financed; lenders require homeowners insurance. Many employers provide some kind of health insurance and people carry life insurance to protect their loved ones if something happens to them. Consumers need different information about each of these types to understand the protections offered and how to choose the right policy.
Required automobile insurance in Michigan is unusual in three ways. People injured in an automobile accident have unlimited medical, loss of wages and rehabilitation costs for three years. Lawsuits are prohibited unless someone is seriously injured or killed. This coverage includes automobile damage or replacement and covers everyone in the household. Reviewing auto insurance policies periodically keeps them accurate and up-to-date as family members come and go.
The most important decision homeowners make is the type of homeowner insurance mi they purchase. This choice is between market value and repair cost coverage. Market value insurance is usually less expensive as the value of the property is based on the purchase price especially if the home was purchased 10 or 20 years ago. Replacement cost coverage is adjusted every year reflecting current market values. The differences in the protection offered can be substantial. If a fire causes $20,000 worth of damage, the replacement cost policy pays the repairs less the amount of a deductible. In a market value property, the original price of the property less the depreciation due to age is computed; then only a percentage of the $20,000 damage is covered leaving the homeowner to pay the balance.