Before you get to the terms, there are a few basic principals that affect your insurance coverage. City dwellers pay more than people who live in rural areas, while drivers ages 16 to 20 pay more than someone age 45. Michigan drivers must buy no-fault coverage, which offers protection from personal liability in the event of an accident. It does not cover car theft, collision damage or vandalism. No-fault coverage has three parts.
Personal injury provides the insured and passengers unlimited medical coverage.
The insured also gets up to three years of lost wages. The second component is residual liability insurance, which protects you in case you are sued by someone involved in the accident. No-fault liability coverage is usually referred to in a series of three numbers. That means that your first claim will go to your medical carrier and the auto insurance will cover the excess. While state law says this coverage is optional, lenders often require it to protect the vehicle, at least until it is paid off.