Auto
When you buy an auto insurance policy, you are buying a car insurance package of individual coverages. Each coverage protects you against different types of losses. Michigan is a “no fault” state and has several unique coverages not present in other states. The following are some common coverages found in a Michigan auto policy. If you have any questions, please don’t hesitate to call us—(616) 530-2800). We’ll talk you through these insurance for auto coverages.
Insurance Terms Explained
Bodily Injury (BI) Liability Coverage
Pays, up to the coverage limits, for damages due to injury or death of others in a vehicle accident for which you or the operator of your vehicle are legally responsible. It also pays your legal defense costs. In most states this coverage is mandatory.
Property Damage (PD) Liability Coverage
Pays, up to the coverage limits, for another individual’s vehicle or property that has been damaged in an accident for which you or the operator of your vehicle is legally responsible. In most states this coverage is also mandatory.
Personal Injury Protection
Pays for reasonable and necessary doctor, medical treatment, care, & recovery caused by an auto accident in the State of Michigan.
Personal Property Insurance
Pays, for damage to property of others caused by you, excluding damage to motor vehicles unless the vehicle was properly parked at the time of the accident.
Uninsured/Underinsured Motorists (UM/UIM)
Pays for bodily injury to you or your family resulting from the negligence of someone whose liability insurance limits are not in force or are insufficient
Broad Collision Coverage
pays for damage to your car, less your deductible. If the other driver is substantially at fault, your deductible is waived., This coverage is usually required if you have a vehicle loan.
Standard Collision Coverage
pays for damage to your car, less your deductible. The deductible is always charged. If the other driver is substantially at fault, they are responsible to reimburse you for your deductible, up to $500.
Limited Collision Coverage
pays for damage to your car, less your deductible if the other driver is substantially at fault. Pays for damage to your car, less your deductible, while your car is properly parked. If the driver responsible for the damage can be identified, that driver’s insurance pays.
Comprehensive Physical Damage Coverage
pays, up to the coverage limits, for damage to your vehicle resulting from theft, fire, vandalism, flooding, hail or other perils (but not damage by collision or overturning
Rental Reimbursement
pays up to a specified amount for rental vehicle charges while your vehicle is being repaired for damage covered under your policy.
Towing and Labor
covers some costs incurred for services rendered at the place of breakdown or for towing to a repair shop. It covers the delivery of gas, oil or a battery, but not the cost of these items.