There are three No-Fault coverages that are required depending on your state’s laws:
Personal Injury Protection (PIP)
If you are injured in an automobile accident, Personal Injury Protection will pay all of your medical costs. It will also pay up to a maximum amount, and wages you would have earned if you had not been hurt, for up to three years.
You may coordinate Personal Injury Protection coverage with other health or disability coverage you have to reduce your premiums. If you choose to coordinate your health coverage, your no-fault policy will pay any medical expenses or lost wages after you have exhausted all benefits under your health or disability plan. When coordinated, this coverage may be called excess medical/wage loss.
Property Protection (PPI)
No-fault will pay up to $1 million for damage your car does in Michigan to others people’s property. For example, buildings, signs, fences, etc.
Bodily Injury and Property Damage (BI/PD)
Coverage pays for your defense costs and any damages you are found liable for as a result of an auto accident, up to the limits of your policy. You may be sued if you’re involved in a serious accident. If this happens, your no-fault policy will pay up to the amounts shown in the liability section. Your liability could be over and above your policy limits. If this occurs, you would be responsible for paying the amount not covered by your policy. To protect yourself, higher limits are encouraged and/or purchasing a personal umbrella policy.
Comprehensive covers you for fire, theft, glass breakage and vandalism. Many companies require a deductible on this coverage.
Collision coverage pays to repair or replace your vehicle if it is damaged in an accident. This coverage is available with or without deductibles.
There are three types of collision coverage:
Limited Collision with/without deductible
Collision coverage pays to repair your automobile if you are 50% or less at-fault in an accident. If you are found more than 50% at-fault, there would be no coverage.
Broad Form Collision coverage
Collision coverage pays to repair your car regardless of fault. If you are more than 50% at-fault, you must pay the deductible that applies. If you are 50% or less at-fault, no deductible applies.
Collision coverage will pay regardless of fault, except the deductible will always apply.
Uninsured/Underinsured Motorist Insurance
This coverage is optional. It will compensate you for pain and suffering and excess wage loss. Coverage would apply if you are involved with another vehicle that is uninsured.