Monthly Archives: August 2010

No one likes to think about getting into an automobile accident.  But if you are involved in an accident, the moment it happens is not the time to be wondering what types of coverage you have in your auto insurance policy.  Take a few minutes to dig out your policy, dust it off, and really see how secure you are.

In Michigan, it is mandatory that you have insurance on your automobile before it is registered with the Secretary of State.  However, auto insurance is not cut-and-dried: it can be tailor made to your specific needs.  There are a lot of coverage options from you to choose from besides the several that are required.  First, let’s go over which coverages are required by the state.

• Bodily Injury Liability: Covers damages and legal defense costs resulting from injuries you may cause to another person while driving.
• Property Damage Liability: Covers your legal responsibility for damage you cause to someone else’s property.
• Property Property Insurance: Pays up to $1,000,000 for damages to stationary property caused by your motor vehicle.
• Personal Injury Protection: Provides unlimited medical benefits for you and your family members for injuries arising from an automobile accident.  It also includes a “work loss” benefit that pays up to 85% of your gross wages for up to three years if your injury prevents you from working.
• MCCA Assessment: While not necessarily a coverage, the assessment is part of every policy sold in the state.  Michigan is the only state in the nation that allows unlimited medical benefits in the event of an accident.  This unique statute is carried out by the Michigan Catastrophic Claims Association and works by reimbursing the insurance company for medical costs over $480,000.

Now, let’s look at some additional coverages that are not required, but can all offer you more protection depending on your needs.

• Uninsured / Underinsured Motorist: Covers injuries to you as a result of a collision with an uninsured driver, or if the other driver has insurance, it will cover medical costs that exceed the other’s insurance limits.
• Collision Insurance: For damage to your car from a collision with another car or stationary object (light post, fire hydrant, wall, etc.).
• Comprehensive Insurance: For damage to your car that doesn’t involve a collision.  It covers damages such as fire, theft, falling objects, explosions, riots, earthquakes, etc.

Visit Insurance Planning Service’s website to discover more about auto insurance, or call our office if you have any questions.  Make sure you are well informed about your insurance situation!