Most states in the United States require drivers to obtain some type of auto insurance. Each state has its own rules about how much coverage is required before a driver can legally operate a vehicle on public roads. Some states, including Michigan, have no-fault auto insurance laws.
Drivers in Michigan must have no-fault liability insurance. If you cause an accident as a Michigan driver, your no-fault insurance policy will pay for injuries and property damage. However, these policies do not cover damage to your own vehicle.
To make sure your car is covered in case of an at-fault accident, you will need to purchase additional insurance coverage.
How Does Liability Insurance Work in Michigan?
Liability insurance is a standard type of auto insurance coverage intended to help cover medical expenses and property damage you cause in an accident. It is the baseline for car insurance coverage.
Some states, including Michigan, are no-fault insurance states. In the no-fault insurance system, your own car insurance coverage covers your hospital bills, lost wages, etc., up to the limit of the policy—no matter who caused the accident. That means drivers turn to their own insurance companies to get coverage for their medical treatment and other out-of-pocket expenses.
Under Michigan’s auto insurance laws, basic no-fault policies will also cover damage you cause to other vehicles if they are properly parked. If the other driver’s car was not properly parked, or if both cars were moving, no-fault insurance won’t pay for the damage. On the other hand, if your car is properly parked and another driver hits it, the other driver’s no-fault insurance policy will pay for the damage to your vehicle.
However, your no-fault insurance does not cover damage to your own car.
Is Your Car Covered If You Are at Fault?
Whether your car is covered after an at-fault accident depends on the type of auto insurance coverage you have.
Liability insurance is intended to pay for other people’s expenses, like their medical bills and damaged property, if you are liable for an accident. These policies will not cover repairs to your own car, even in no-fault states like Michigan.
To make sure your car is covered if you are at fault for an accident, you will need to purchase additional types of auto insurance coverage, such as collision and comprehensive insurance. These policies help cover additional costs, such as paying for repairing your car if it is damaged in a crash or for replacing your car if it is stolen.
Review your car insurance policy or talk to an experienced insurance agent to learn more about how you are covered in the case of an at-fault accident.
Contact Melton McFadden to Get Commercial Vehicle Insurance in Michigan
At Melton McFadden, our experienced insurance professionals can help you develop an auto repair business insurance plan that protects your finances, employees, and peace of mind. We are ready to guide you through the process of identifying coverage essentials, finding gaps in your current insurance plan, and creating a solution that works best for you and your business.
Whether you are looking to expand your current commercial vehicle insurance coverage, sign up for a new business insurance policy, or invest in a plan to protect your employees, we’re here for you every step of the way.
Contact us today or request a free quote to get started.