Automobile insurance is designed to protect you and your owned vehicles from physical damage, as well as liability claims potentially arising out of bodily injury to yourself or others. Michigan is classified as a “no-fault” auto insurance state. This means, all claims resulting in damages to your vehicle will be covered under your auto insurance policy, regardless of fault.
Michigan requires a motor vehicle owner to carry some minimum level of liability insurance. Therefore, every auto insurance policy contains liability coverages. These coverages will protect you and your family against bodily injury, property damage, and personal injury protection claims.
You have the option to purchase additional coverages for each specific vehicle on your policy. Some other coverage includes –
Other than Collision/Comprehensive – provides coverage (subject to a deductible) to repair/replace damage cause by theft, falling objects, vandalism, fire, glass breakage, as well as other incidents that are not considered collisions.
Collision – Collision coverage is also subject to a deductible of your choosing. This coverage is designed to provide the vehicle owner with repairs to damage caused by any collision. It will also pay the cash value of the vehicle in the event the vehicle is damaged beyond repair, or totaled.
Roadside Assistance – this will provide reimbursement payments if the vehicle has to be towed (not due to an accident), runs out of gas, or requires a locksmith. This optional coverage will be up to a limit of your choosing.
Optional Limits Transportation Expense / Rental Car Reimbursement – Will provide a per day limit of reimbursement when a rental vehicle is required during the time it takes to repair an insured vehicle that has been involved in a claim. This coverage is typically included when comprehensive and collision coverages are purchased for a vehicle. However, the limit per day is generally low. You can chose to purchase additional limits to provide a higher reimbursement per day for a rental vehicle.