Wednesday, June 15, 2022

Do You Have To Have Car Insurance In Michigan

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What Are The Different Types Of Supplemental Rental Car Insurance

Do you have auto insurance?

There are four basic types of insurance that most rental car companies offer:

Collision Damage Waiver;

Also called a loss and damage waiver, this coverage protects you from financial responsibility if the vehicle is stolen or damaged during the course of your rental term.;;

Michigan No-Fault insurance does not cover theft or damage resulting from an accident or vandalism, which is why many car owners choose to add various levels of collision coverage to their auto insurance policies. However, not all policies extend collision coverage to rental cars. Therefore, it is important to check with your insurance agent to see if your collision coverage applies to rental cars. If not, it is a good idea to purchase the waiver. The cost is minimal compared to the amount you would have to pay if the rental car is damaged or stolen.

Furthermore, some rental car companies will assess additional charges for the loss of use of a vehicle while it is being repaired as well as for the diminished value of a car after it has been damaged in an accident. A collision damage waiver will protect the renter from having to pay these costs.

;Supplemental Liability Insurance

If you cause an accident while driving a rental car, this insurance covers damages to someone elses car or property as well as certain medical expenses for those who are injured in the crash.

Personal Effects Coverage;

Personal Accident Insurance;

How Does Michigans No

Michigan has no-fault laws regarding car accidents, which means that your own car insurance will cover your injury-related costs whether or not you were at fault in causing or contributing to your accident. While no-fault laws aim to limit the number of individuals facing lawsuits and make the state court system more efficient, these laws can have a significant effect on your injury claim after a car accident.

This has never been more true than after July 2020, when a revamped no-fault insurance law went into effect in Michigan. These changes complicate the no-fault system, as consumers have more options for coverage. It also complicates the process of seeking full compensation for many injured motorists, and we expect to see more third-party claims moving forward.

No matter what type of no-fault coverage you have in Michigan, the claim process can be challenging and stressful. You should allow the Michigan car accident attorneys at Michigan Injury Lawyers to handle this process for you. The following are only some ways that no-fault laws in Michigan can affect your claim.

When You Can Sue According To Michigan No

  • If the accident is in Michigan and causes death, serious injury, or permanent disfigurement
  • If a Michigan driver is involved in an accident in another state
  • If a Michigan driver is in an accident within the state involving a non-resident driving a car not registered in Michigan

If the at-fault driver is sued, their liability policy will pay up to its limits. If the court awards more than their limits, they will be personally responsible for paying the amount not covered.

What are the top 10 cheapest states for car insurance?

The cheapest states for car insurance are Iowa, Vermont and Nebraska, according to WalletHub’s Cheap Car Insurance Study. They are the cheapest states for auto insurance in large part because they have low population density and relatively few uninsured motorists. In contrast, New York, Florida and New Jersey are the most expensive states for car full answer

Population and uninsured motorists are the two main reasons for variations in policy costs from state to state. After all, fewer people means fewer drivers on the road, which means fewer accidents. And a low percentage of uninsured motorists means that more of the people on the road are responsible drivers. It also means insurance companies face fewer claims from their own customers who’ve been hit by uninsured motorists. Both a low population and low numbers of uninsured motorists keep claims and premiums down.

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Alternative Car Insurance In Michigan

Drivers who are denied car insurance on the open market because of DUIs or other factors may apply for coverage through the Michigan Automobile Insurance Placement Facility.

NerdWallet can also help drivers find cheap car insurance in Michigan. Try our car insurance comparison tool to view rates from leading companies in the Wolverine State.

High Rates Of Insurance Fraud

Do you have to add your teenager to your car insurance in ...

Making things even more expensive for Michigan drivers is the high rate of insurance fraud across the state. Michigan has a relatively high rate of insurance fraud. One study indicated that approximately 10% of all no-fault claims in Michigan are fraudulent. Fraudulent claims raise money for insurance companies, and insurers pass these costs onto drivers.

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What State Should College Students Insure Their Car In

Many college students are on a family auto insurance policy. Can I be on my parents auto insurance if I live in a different state as a full-time college student? Will you be required to purchase a different auto insurance plan to cover you while you attend school out of state?

Fortunately, no. If you are a college student, your school address is considered to be temporary, not permanent.

This means you can usually keep your current auto insurance policy because your permanent address did not technically change.

If you are not going to bring a vehicle with you, your parents can remove you from the policy to save some money.

Cheapest Car Insurance In Michigan For 40

Drivers in their 40s tend to have better insurance rates than their younger counterparts but still pay more than older age groups. Shopping around for cheap car insurance quotes with multiple insurers is the best way to find lower rates. Good drivers who dont get behind the wheel often might want to consider pay-per-mile insurance, which charges drivers by how many miles they drive.

Ask about discounts for signing up for autopay, paying your premium in full rather than quarterly or monthly, and opting for electronic statements. If you own your home, consider insuring it with the company that provides your auto insurance; most carriers offer bundling discounts.

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What Michigan Auto Insurance Covers

Michigan auto insurance follows the No-Fault system, and the state requires it for all cars. When you register your vehicle, there are mandatory coverages that you must have for auto insurance in Michigan. The basic no-fault Michigan auto insurance policy has three essential parts.

Bodily Injury and Property Damage

The first section is bodily injury and property damage; this coverage will protect you and your assets from lawsuits as the result of an auto insurance accident. In Michigan, someone can sue you if you cause an injury to the other driver, passenger, or pedestrian. This section covers the cost to defend you in a lawsuit in addition to your limits.

What Will I Need To Bring With Me To Register A Car In Michigan

How Long Do I Have To File a Car Accident Lawsuit in Michigan

In order to register a car in Michigan, youll need to have certain documentation. If youve just moved to Michigan and need to register your out-of-state car, youll need to change your out-of-state title. If youre a Michigan resident who has just purchased a vehicle, youll need to have the title registered in your name.

You will need to bring the following items with you to register a car in Michigan:

  • The vehicles title
  • The odometer reading and Vehicle Identification Number
  • Method of payment for the use tax and title transfer fee
  • Proof of valid Michigan no-fault car insurance coverage

If you have purchased your vehicle from a dealership, the dealer will handle the paperwork, collect the taxes and fees, and will provide you with copies of all of the documentation youll need to retain. The dealership is required to provide you with copies of the application for Michigan title, any written warranties or service plans purchased, an odometer statement or the Buyers Guide sticker , plates and Michigan car registration, and, if leased, a copy of the lease contract agreement.

If you have purchased a used vehicle, the dealership is required to present the prior owners title for inspection. Examine it closely; if the title is orange, the vehicle was issued a salvage title.

The dealership will then file the title application within the 15-day window allowed by law.

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What Do Auto Insurance Companies Think About Policies Being Purchased By Someone Other Than A Vehicles Owner

When it comes to insuring a car for someone other than the vehicles owner, insurance companies look at this non-owner scenario as a win-win for them. One auto insurance company makes money by selling a policy that will potentially protect no one and that will yield no claims. And another insurance company would then use the Barnes case I mentioned above to avoid having to pay No-Fault benefits by claiming the victim was still uninsured and, thus, ineligible for No-Fault PIP benefits because the policy on his or her car was purchased not by him or her the vehicles owner but by a non-owner.

Thanks to the Michigan Supreme Courts ruling in Dye, insurance companies can no longer do this to people who were trying to fulfill the spirit, the intent, and the public policy behind why we insure cars and other vehicles.

In addition to the portion of the ruling I quoted above, the justices in Dye also ruled:

  • Because MCL 500.3101 does not prescribe any particular manner by which no-fault insurance must be maintained, we will not read into the statute a requirement that the insurance be purchased or obtained by a vehicles owner or registrant.
  • etermining whether no-fault benefits are available to an injured person does not depend on who purchased, obtained, or otherwise procured no-fault insurance.
  • Thus, we conclude that the language of MCL 500.3101 does not require an owner or a registrant of a motor vehicle to personally obtain no-fault insurance.

Should I Seek Medical Treatment Following A Car Accident In Michigan

After a car accident in Michigan you should immediately seek medical attention for any injuries that occurred in the crash. Be sure to report any minor pain that may seem less important at the time, in comparison to more serious injuries. Significant injuries are often masked early on, making it difficult to link them to the recent auto accident if not thoroughly documented.

Its important that you report ALL Injuries to EMS and Emergency Room personnel. It is especially critical to tell emergency workers or ER doctors if you experienced any loss of consciousness as a result of the accident. Insist that medical personnel record all of your injuries.

Although they may initially appear to be minor, be sure to report symptoms resulting from the accident such as:

  • Headaches
  • Problems with short-term memory or concentration
  • Emotional changes

Seek additional medical attention if necessary. Return to your medical provider if you experience any new symptoms that were not reported during initial treatment.

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Penalties For Driving Without Insurance

In Michigan, driving without insurance is considered a misdemeanor. Punishments may include up to one year in jail even if you have insurance but forgot to carry proof while driving along with a license suspension. You also must pay a fine of up to $1,125 if you don’t have insurance or at least $425 if you don’t have proof of insurance.

In the table below, we list the penalties for either letting your insurance lapse or forgetting your proof of insurance.


Driving without proof of insuranceDriving without insurance
$200 for 2 years$500 for 2 years
Driving privilegeDriver’s license suspended for up to 30 daysDriver’s license suspended for up to 30 days
Reinstatement fee
Up to one year of jail timeUp to one year of jail time

Put Our Experienced Car Accident Lawyers To Work For You Today

Why You Need to Have Car Insurance

Whether you are renting a car or driving your own, if you are injured in an accident, we can help. Our knowledgeable legal team knows what it takes to win your case, and we have the expertise and resources to make sure you receive the compensation you and your family deserve.

Car accident law is complicated, but finding the right car accident lawyer is simple.

Dont let the legal clock run out. To get your case started, fill out the brief form below or call 1-800-CALL-SAM for a free, no-obligation remote consultation from the safety and comfort of your home.

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Michigans Pip Insurance Requirements Are Different Than Other States

12 other states in America have no-fault car insurance policies and PIP insurance requirements. Why is Michigan more expensive than all of these other states?

Well, other states place a limit on PIP coverage. Michigans PIP policy, however, does not: in Michigan, PIP policies guarantee unlimited lifetime medical benefits to those injured in an auto accident.

Your car insurance company can pay up to $555,000 to cover lifetime medical expenses. For medical expenses exceeding this amount, a nonprofit organization called the Michigan Catastrophic Claim Association picks up medical expenses exceeding that limit. Michigan drivers pay into the MCCA each year through their annual assessment fee, which is priced at $170 per vehicle.

Michigan Teen Driving Laws

Young drivers are eager to get out on the road and experience that kind of freedom for the first time in their lives. To ensure safety on the road for everyone, its important to become familiar with the laws for new drivers in Michigan.

Drivers can get a Level 1 Learners License once they turn 14 years and 9 months old, and can get a Level 2 Intermediate License once they turn 16 years old and have been driving for at least six months with 50 supervised hours . Restrictions are lifted once a driver turns 17 and receives a Level 3 Full License. You can learn more about being a young Michigan driver here..

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How Much Is Your Michigan Auto Accident Case Worth

Michigan Auto Law is the leading and largest law firm in Michigan exclusively handling auto accident cases for more than 50 years. By answering a few simple questions we can help you determine how much your accident case could be worth.

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Disclaimer: This information is for general informational purposes only and should not be relied upon as legal advice without consulting with a licensed attorney. This is not intended to substitute for the advice of an attorney. The law is subject to frequent changes and varies from one jurisdiction to another. Some of the information on this site may be deemed attorney advertising in some states. No attorney-client relationship is formed nor should any such relationship be implied. Past results are no guarantee of future results. A licensed attorney responsible for the content of this site can be reached at 777-0028.

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Should We Over-Haul the Michigan No-Fault Auto Insurance?

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  • If you move to a different state and dont tell your insurance company, your insurer may refuse to honor your contract because you failed to comply with the terms of the agreement.
  • Auto insurance rates vary from state to state, and buying out-of-state auto insurance to receive cheaper rates is a form of insurance fraud and is punishable by law.
  • If you are a resident of two states, many people simply get their insurance in the state where their vehicle is registered or where they spend the most time. You will need proof of insurance to register your vehicle and get a license plate.

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Insurance Requirements With A Teen Drivers License

A licensed teen driver must be included and coveredby the familys car insurance policy. This can be accomplished by naming theteenager as a named driver on the policy covering the vehicle or vehiclesthat the teen will regularly be driving.

The biggest mistake I see as an auto accident lawyerregarding teen drivers is the parents failure to list their teenagers asnamed drivers on their car insurance policies. This is very dangerous. Ifyour teen causes a serious car accident when driving a carthat she normally drives but is not listed on as a named driver, there can bedisastrous consequences. These consequences can include your childs medicalbills not being covered by your own auto insurance company, and your child beingbarred from suing an at-fault driver even when your teen is completely innocent andseriously injured.

Below are important issues that parents shouldconsider when considering insurance for their licensed teen driver:

  • Makingchanges to the familys auto insurance to ensure teenage drivers are protectedunder No-Fault: A parent must inform the car insurance company that thereis a new licensed driver in the home. Parents are also supposed to list theprimary driver of each vehicle, i.e., named drivers, in the policy. Ifparents purposely avoid listing their teenagers, eitheras living in the house or as named-drivers, this could be considered insurancefraud, and coverage can be canceled by your insurance company where the policyis considered void ab initio.

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