What You Should Know About Michigan Auto Insurance and the State's No-Fault Policy

The Michigan state formulated and introduced its # no-fault policy for Michigan auto insurance in 1973. The reason this policy was introduced was that the state wanted enhance the level of benefits paid out to injured persons, in case of a car accident and additionally, that costs were paid out promptly, so that the injured part did not have to bear costs while still undergoing treatment.


What Benefits Does the Michigan No-Fault Policy Offer?


The Michigan auto insurance regulations, particularly its no-fault policy allow for wage loss benefits for as many as three years and $20 a day for replacement services. These payouts are made regardless of fault. Dispute over the cause of the accident is not allowed to hold up the settlement of medical bills. Also, motorists in Michigan have no right to sue except in case of death or serious injury in a car accident or


What Makes Michigan's No-Fault Policy Unique?


The unique feature of Michigan auto insurance is that under its no-fault policy, even vehicle damages are covered. This makes for settlement of costs to happen speedily and both medical bills and vehicle repair services to happen without any difficulties.


Can a Motorist Avoid Taking the No-Fault Insurance?


Under the state of Michigan's auto insurance regulations, every registered car must definitely be registered. It is considered illegal in the state to drive without the state's no-fault auto insurance. If you are found to be driving without the no-fault insurance that the state holds as mandatory, you may even be fined up to a sum of $500 and/or imprisoned for a period of one year.


What happens if you Have an Accident and are seen to be Without No-Fault Insurance?


If you do not have the no-fault policy and land up in an accident, you may be sued and be held personally liable as well. You may well go bankrupt paying for lawyer's fees, medical bills and vehicle repair costs.