 Auto Insurance
When you buy an auto insurance policy, you are buying a
package of individual coverages. Each coverage protects you against
different types of losses. Michigan is a “no fault” state and has
several unique coverages not present in other states. The following are
some common coverages found in a Michigan auto policy.
Insurance Terms Explained
Bodily Injury (BI) Liability Coverage Pays, up to the coverage limits,
for damages due to injury or death of others in a vehicle accident for
which you or the operator of your vehicle are legally responsible. It
also pays your legal defense costs. In most states this coverage is
mandatory.
Property Damage (PD) Liability Coverage Pays, up to the coverage limits,
for another individual’s vehicle or property that has been damaged in an
accident for which you or the operator of your vehicle is legally
responsible. In most states this coverage is also mandatory.
Personal Injury Protection Pays for reasonable and necessary doctor,
medical treatment, care, & recovery caused by an auto accident in the
State of Michigan.
Personal Property Insurance Pays, for damage to property of others caused
by you, excluding damage to motor vehicles unless the vehicle was
properly parked at the time of the accident.
Uninsured/Underinsured Motorists (UM/UIM) pays for bodily injury to you
or your family resulting from the negligence of someone whose liability
insurance limits are not in force or are insufficient
Broad Collision Coverage pays for damage to your car, less your
deductible. If the other driver is substantially at fault, your
deductible is waived., This coverage is usually required if you have a
vehicle loan.
Standard Collision Coverage pays for damage to your car, less your
deductible. The deductible is always charged. If the other driver is
substantially at fault, they are responsible to reimburse you for your
deductible, up to $500.
Limited Collision Coverage pays for damage to your car, less your
deductible if the other driver is substantially at fault. Pays for
damage to your car, less your deductible, while your car is properly
parked. If the driver responsible for the damage can be identified, that
driver’s insurance pays.
Comprehensive Physical Damage Coverage pays, up to the coverage limits,
for damage to your vehicle resulting from theft, fire, vandalism,
flooding, hail or other perils (but not damage by collision or
overturning
Rental Reimbursement pays up to a specified amount for rental vehicle
charges while your vehicle is being repaired for damage covered under
your policy.
Towing and Labor covers some costs incurred for services rendered at the
place of breakdown or for towing to a repair shop. It covers the
delivery of gas, oil or a battery, but not the cost of these items.
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