Michigan auto insurance is a lot different from insurance elsewhere in the United States. Required by law in Michigan, no fault insurance has three basic parts. These are personal injury protection, property protection insurance and residual liability insurance (bodily injury and property damage coverage). If you want to register a car in Michigan, auto insurance has to be purchased, and you have to prove that you have it. Like most other places in the US, driving a car without insurance is against the law.

Policies under Michigan’s no fault insurance provide for reimbursement of medical costs plus lost income from your injury for up to three years. The amount you can receive for this was around four and a half thousand dollars as of 2007. This amount also applies when someone who has died in an accident and who has Michigan auto insurance. His or her family will receive up to that amount every month for three years to make up for the lost income.

If someone is in an accident and his or her injury prevents basic family services from being provided, such as housekeeping, up to twenty dollars per day to hire others to do this for them is also available. You can choose to synchronize your coverage to any existing health or disability policy if you’d like to reduce your premium, as long as it’s not a Medicare or Medicaid policy (these cannot be synchronized). That makes the synchronized policy the primary payer, and the your Michigan auto insurance is responsible for covering what’s left.

If you have Michigan no fault insurance, your policy will pay up to a million dollars in damage done by your car to other people’s property, such as fences, buildings, lamp posts and other objects. If you do damage to someone else’s vehicle, and that car is properly parked, this policy will also pay for that damage.

The no fault law for Michigan auto insurance also protects people who are insured under this policy from being sued outside of particular situations. If you cause an accident in which someone else is seriously injured or killed, are involved in an accident with a car not registered in that state, or you’re involved in an accident outside of state, you may be sued.

If you were at fault for an accident (more than fifty percent) it’s also possible that you might be sued for up to five hundred dollars worth of damage to another car. However, you can still get payment from Michigan no fault auto insurance plans for up to your coverage limits, even if you’re legally responsible for damages.

There’s a minimum requirement of twenty thousand dollars worth of coverage for property damage and bodily injury coverage to handle situations where a person is injured or killed in an accident. For accidents where several people are injured or killed, up to forty thousand dollars of coverage is required. To cover property damage that happens outside of Michigan, you’ll need to have up to ten thousand dollars of Michigan auto insurance coverage. Just remember that if the court awards more than this, you’ll be responsible for the excess you need to pay.

So what doesn’t Michigan no fault insurance cover? Collision insurance, which covers repairs to your car, is not required. Comprehensive insurance is also not mandated by law, and covers damage to your car if it is stolen, or damaged by fire, flood, animals, vandalism, or falling objects. If you are hit by an uninsured motorist and have not voluntarily purchased coverage for this, you will also not be covered by regular Michigan auto insurance.

Before you purchase car insurance online or from your local insurance agent, discover how to acquire dirt cheap auto insurance for Michigan Auto Insurance.