As of July 1, 2020, all Michigan drivers and their insurance policies are affected by the state’s new no-fault auto insurance law. It’s important to be aware of how this new law will impact you if you or someone you love is injured in a car accident.
Keep reading to learn more about Michigan’s new no-fault auto insurance coverage options.
Required Minimum Coverage
As a Michigan driver, you are required to carry the minimum coverage no-fault policy. This minimum coverage provides the following:
- Up to $20,000 for someone who is injured or killed in an accident.
- Up to $40,000 for each accident if multiple people are injured or killed.
- Up to $10,000 for property damage in another state.
In addition to the required minimum coverage, you have several policy options that you can choose to buy to add-on to your existing no-fault coverage. The following are the three most common types of additional coverage:
#1 - Collision and Comprehensive Insurance
If your car is damaged in an accident, your no-fault insurance policy will NOT pay for the repairs to your vehicle.
If your car is parked appropriately and it is damaged by another vehicle, the other driver’s no-fault coverage will pay for the repairs to your car. Other than the aforementioned circumstance, the only types of coverage that will pay for the repairs to your vehicle are collision and comprehensive.
#2 - Limited Property Damage Liability Insurance - “Mini-Tort”
If you are 50% or more at fault in an accident that results in damages to another person’s vehicle and the damages are not covered by insurance, you may be sued for up to $1,000.
This additional coverage option will pay up to $1,000 in the event you are sued for the accident.
#3 - Towing and Rental Car Coverage
This add-on typically covers or reimburses you for the expenses related to towing and/or a rental car for covered events, such as an accident, breakdown, flat tire, etc.
The cost for this additional coverage tends to be relatively low in relation to the total policy premium.
We’re Here to Support You
If you’ve been injured in a car accident, you may be entitled to compensation. Our attorneys here at Goodman Acker P.C. are highly skilled in the area of car accident personal injury law and have helped many other people just like you obtain justice. Let us see if we can help you, too. Don’t wait—contact our office with your case right away.
Call Goodman Acker P.C. today at (248) 286-8100 to discuss the details of your case.