Auto insurance is basically insurance for automobiles, trucks, boats, motorcycles, and any other road vehicles operated on the roads. Its primary function is to offer financial protection against damage or bodily harm inflicted on an insured vehicle or against any liability which may arise out of traffic accidents. The insurance coverage offered in auto insurance policies usually caps the total amount payable as reimbursement in case of a total loss situation. In many cases, there is a cap on the total compensation payable as part of a comprehensive policy.
The primary objective of motorist coverage is to offer adequate protection to motorists in case they are injured in an accident. In Michigan, the minimum amount of liability insurance required by law is PIP, which stands for personal injury protection coverage. This kind of coverage offers coverage against financial liabilities resulting from injuries received from automobile collisions. The coverage provided by this coverage can also include reimbursement of costs related to lost wages and disability expenses incurred by the injured drivers.
Another important aspect of car insurance coverage is physical damage coverage. This coverage provides coverage for damage to the insured’s property caused by an automobile collision or theft. This coverage also covers medical payments paid to the injured driver or passengers in the event of a car accident, if the car is stolen.
A car insurance plan may also include coverage for underinsured or uninsured motorists. An uninsured motorist policy, sometimes called uninsured motorist coverage, offers this protection to drivers who do not have enough insurance to pay for losses caused in an automobile accident. An uninsured motorist policy may also cover a driver who is in an accident with someone who has no insurance or minimal coverage. The insurer may require that this person be given a credit card or other form of payment in case the person is unable to pay for the damages in the event of an accident. In Michigan, if the owner of a stolen vehicle does not have enough coverage to cover the damages, the lender can legally force the driver’s license suspended until the funds are repaid.
One of the most expensive types of insurance in Michigan is liability insurance. Liability insurance protects against damages that occur through negligence or wrongful action on the part of the insured. This insurance also protects against damages that happen through the actions of others. Liability insurance is required under many different circumstances, including: motor vehicle accidents, premises liability, medical malpractice, premises liability insurance, wrongful death, premises insurance, property damage insurance, and product liability insurance.
There are several common types of Michigan liability insurance. These common types of liability insurance include: bodily injury liability insurance, property damage liability insurance, motor vehicle liability insurance, and personal injury liability insurance. Bodily injury liability insurance provides protection for individuals who suffer injuries in an accident caused by the negligence or wrongful conduct of another individual. Property damage liability insurance protects the covered individual from losses incurred due to property damage resulting from storms, fire, vandalism, and acts of nature. Motor vehicle liability insurance provides protection for motorists who cause an accident causing bodily injury or damages to other people or their property. Medical malpractice and premises liability insurance provide protection for those who are injured due to medical malpractice or premises liability.