Moving to Michigan? You would either be really well prepared, or lost among all the matters that require your attention. At CoverHound, we know that moving out of state can be a hassle, so we have prepared for you some useful information about auto insurance in Michigan.
A common misconception about auto insurance minimum coverage is that, it is the same for all states. That is not true. Auto insurance in Michigan requires you to have a minimum liability coverage of $20,000/$40,000 for bodily injury and $10,000 for property damage to protect yourselves from lawsuits. It is a benefit to understand what are the changes to your minimum coverage when moving states.
SR22 is a Certificate of Financial Responsibility (CFR) - isn’t a type of car insurance, but a verification that you’re maintaining car insurance liability coverage. You would be required to possess a SR22 if you are caught driving without insurance, driving under influence (DUI), committing repeat traffic offenses or if you get too many tickets within a short period of time. At CoverHound, SR22 typically costs around $25 in Michigan.
It is also important to check if your current SR22 is valid in MI. It may be waived because you have met regulations enforced by the state that you were previously in, and an affidavit is most commonly required in order to get the waiver. However, you may also be required to receive a new SR22 based upon Michigan’s financial responsibility laws.
Personal Injury Protection
Auto insurance in Michigan requires policyholders to have medical and work loss coverage for PIP. The medical and work loss PIP only covers the Named Insured, but speak to your insurance agents if you wish to purchase PIP for your passengers.
No Fault State
Michigan is one of the twelve states that are “no fault states”. So what is a no fault state? It means that in an accident, none of the parties involved will be at fault. Your automobile insurer will pay the medical bills for you and your companions independent of who was at fault for the accident.
Uninsured Motorist Coverage
Uninsured motorist coverage is optional in Michigan, but it is advisable to consider getting the coverage to protect yourself in the event of an accident with an uninsured motorist. Accidents happen when you least expect it, but with the right coverage, you will be protected.
Other Useful Tips
When moving states, it is important to make sure that you are continuously insured. Cancel your auto insurance only after you have obtained new coverage in Michigan. It is also important to ensure that your current auto insurance is valid in MI and most states have up to 90 days for you to register your vehicle.
If you have existing tickets, DUIs and claims in the last 5 years, it is important to be honest with the insurance agents when purchasing a new policy. Unfortunately, moving states does not grant you a clean slate as your driving history is tagged to you even after you have moved to Michigan.
The complexity of the insurance industry can really be mind boggling but at CoverHound, our dedicated agents are here to guide you through this process.