Auto insurance is the service we need to protect ourselves and others if we’re in an accident. Because accidents can happen unexpectedly, you need to cover yourself before it happens. The auto insurance agents at Phil Klein Insurance Group, in West Bloomfield, MI, are available and want you to understand the basics of auto coverage and why you need it.
One of the main types of coverage that most states require is liability insurance. In Michigan, you’re required to have no-fault coverage. With no-fault insurance, you won’t be sued if you’re involved in an accident that is deemed to be your fault. There are certain situations that are excluded.
- If you cause an accident that results in someone being seriously injured or killed.
- If you hit someone who is a non-resident and their vehicle is not registered in Michigan.
- If you get into an accident outside of the state.
In these conditions, having no-fault insurance would cover some or all of the cost of medical bills, car repairs, and lost wages.
Three-Part Insurance System
In Michigan, the no-fault policy is made up of 3 parts.
- Personal Injury Protection (PIP) – pays for medically necessary expenses for you if you are injured in an accident. PIP has no maximum limits, except when it comes to missed wages or death payouts. The maximum for death payouts or missed wages is 3 years and is based on your possible earnings.
- Bodily Injury – helps pay for the medical costs if you cause an accident that injures someone else.
- Property Damage – covers you from having to pay for damage to physical property, such as parked cars or fences.
If you need to adjust your coverage and you’re in the West Bloomfield, MI area, stop by Phil Klein Insurance Group to speak with an agent.