Find Out if Car Liability Insurance is Right for You
Trying to decide if you need car liability insurance? If you get behind the wheel of a car as a US driver you pretty much have to. That is because practically every state requires drivers to have this type of basic and minimum car insurance. Without it, you could be breaking the law if you drive. Not to mention if you should have an accident you will be liable for the expenses for car repairs and medical bills if you are the driver at fault.
Here are some other things to know about car liability insurance:
- Auto liability insurance covers three main areas, which are bodily injury per person, total medical expenses per accident and property damage coverage. Whatever your state minimum requires for each of these is the minimum you must have. For example if a state requires you to have $25,000 for the first, $50,000 for the second and $25,000 for the last one, it will look like 25/50/25. The minimum amount varies depending on the state but you never have to settle for having just this amount. If you move to another state though, it is important to update your auto insurance policy to be sure you are meeting the minimum requirements. Your state may have additional required insurance coverage such as uninsured motorists and PIP or personal injury protection.
- Liability covers only the bodily injury and property damage you cause another person however. So if you want your own vehicle covered, or need your medical bills covered than you will probably want something more extensive than just liability car insurance. This is especially true if you do not have health insurance and would have to pay your own hospital bills in the event of an accident.
- Of course in addition to the expense of these types of details you may also need to cover legal fines if you are caught driving without the state minimum car insurance. Not only will you have legal expenses from it but also this will cause your rates to go up when you do get insurance. Make sure you keep yourself insured even if it is just the state minimum.
Things That Effect Rates
If you are looking for cheap car liability insurance then there are some things you should know about factors that can affect the rates. For example:
- Your rates can be higher if you have let your auto insurance lapse for 30 days or more. Of course, if you are caught driving while not having this policy as well you will have to pay higher insurance rates. It is a good idea to keep insurance at all times to stay legal and make sure your policy premiums do not skyrocket. Keep in mind even if you do not own a car and will be driving a friend’s car sometimes having non owner’s insurance will keep you legal and prevent your rates from going up due to a lapse in policy coverage. Keep some type of auto insurance policy at all times.
- Your rates can be lower if you opt to pay them annually or every four months as opposed to once a month. If you can budget to pay some time more than every month you will see savings. This is also true if you can pay your down payment up front to start a new policy as opposed to having it divided up over the payment times. Anything you can do to pay a bigger lump sum up front will help you save money on car insurance.
- If you drive a brand new financed car, your rates will be higher and a car liability insurance policy won’t be enough. The higher the sticker price of the car or the sportier is the more you can expect to pay. This is especially true if you bring in a car for trade that you still owe on. If you are going to finance or lease a new car at least try to make it one that is less sporty and more safe. The more safety features a car has the better you may be able to do with your premium rates. Keep in mind also that if you have anti-theft devices like a car alarm, the rates can be lower.
- Set up your premiums payments to be auto pay and you could save a bundle. If you go paperless for your billing, companies often reward customers with great savings. Have your premiums come out of your checking account, savings account or be automatically paid by your credit card and you could see much lower auto liability insurance rates.
While having liability insurance think about certain things that are pros and cons to having this policy:
- The rates are cheaper than with other kinds of insurance. However, it may not be enough for what you really want. When you get quotes to compare you may find you can get better coverage for the cost of what you pay for just liability now.
- Even if your car is not financed and is paid for, you might still want to carry more than liability. If your car has any value or if you do not have health insurance you may want to protect yourself with a policy that is more than liability.
- Having the state minimum liability auto coverage will at least keep you from getting a ticket if you are stopped by the police. Keep in mind if you have an accident and are not at fault but do not have liability insurance you may still be responsible for your own expenses. If you are driving illegally, you usually lose your expenses being covered by the other driver’s policy by default.
- Getting quotes is the best way to find out what you could be paying or saving. For many who already have a policy getting quotes helps them find a new policy that can save them even more money. By using just your zip code, you can find out what your rates for car liability insurance could be.
Michigan Liability Auto Insurance
Part of getting your Michigan liability car insurance quotes is knowing more about the state guidelines for this type of insurance. It may also be important to make sure you are not in a classification which requires you to have more than the Michigan state minimum. Before signing up for your first or new car insurance policy it is crucial for you to have a clear understanding of what you must have.
If you are a new driver or have recently relocated to the state of Michigan, you must make sure you are aware of what is required by law. You must also make sure there are no further expectations of you as a driver based on your driving history or other situations. A common mistake drivers make is settling for Michigan car liability insurance when they actually need more than that.
Michigan as a No Fault State
Only some states require No Fault insurance as part of the state requirements. For Michigan car liability insurance, this is a minimum guideline. Some key points about your Michigan liability insurance:
- In order to obtain your license plates for your vehicle in the state of Michigan you must have the minimum no fault Michigan auto liability insurance policy in place. You must understand that it is illegal to drive your car without No Fault insurance as a registered Michigan driver.
- If you are caught driving without the mandatory Michigan liability insurance policy coverage including No Fault you will be subject to a variety of penalties and fines. You may even lose your driver’s license. This in turn would make it necessary for you to obtain SR22 car insurance for high-risk drivers.
- If you have recently relocated to the state, it is crucial that you learn what is required of you as a driver in the state. It is important that you get your license and insurance in order as quickly as possible.
What is No Fault Insurance
As a driver in the state of Michigan, your Michigan car liability insurance minimum requirements include the need for a No Fault policy. If you have never lived in a state that requires No Fault coverage or are obtaining your policy for the first time you may be wondering what No Fault insurance even is.
No Fault insurance for Michigan is a policy in which both sides are covered as far as medical expenses go, regardless of who is at fault. Though the required guidelines vary state from state to state you can also add additional coverage to your No Fault policy.
The main purpose behind No Fault coverage is to make sure all injured parties involved can receive the medical treatment needed without waiting to settle insurance. However, for Michigan’s minimum requirements your own vehicle repairs will not be covered. You can add this to your policy to ensure that you have your medical and vehicular expenses covered in an accident regardless of who is at fault.
Michigan liability car insurance requirements for No Fault coverage include three main parts of minimums to be satisfied. These amounts vary from state to state. Therefore, it is important to make sure if you have recently relocated that you adjust your policy to reflect this. The minimum amounts for the state of Michigan can also change at any time and it is vital that you check with current rates through the state website or your local Department of Motor Vehicles.
Presently the bare minimum for Michigan No Fault car insurance is $20,000 for injury or death as the result of an accident, $40,000 total for each accident pertaining to medical coverage and $10,000 for property damage.
Keep in mind you may wish to purchase additional Michigan liability car insurance coverage and have your amounts at a higher amount. Doing this can help you ever having to worry about paying for expenses due to a collision from your own pocket.
What About Other Insurance?
You are now aware that the minimum amount of Michigan auto liability insurance includes No Fault car insurance. The main thing a driver must do to be behind the wheel legally is satisfy the state minimum requirements to drive legally. Aside from that, there may be other instances when you need additional car insurance policy coverage above and beyond liability and no fault.
The other main thing to make sure that is covered is the amount required by your lender if you are paying for your vehicle through a car loan. If you do not have the minimum policy in place, you are running the risk of being held responsible for damages to your financed vehicle out of your own pocket. In addition, your lender may tack on their coverage to fill in the gaps. This coverage can end up overly expensive, be added to the end of the loan and you may not even be aware of it until you think you are making your last car loan payment.
Other types of insurance you may want to consider include collision, comprehensive and gap just to name a few.
- As the name implies collision is insurance you can have to cover yourself and anyone you hit for an accident that will cover both your medical and vehicle expenses in addition to the others involved.
- Comprehensive takes care of things that can harm your vehicle aside from a collision. This is what you should get to protect your car against fire, floods, storms and even theft.
- Gap coverage is generally what people get to make sure their brand new financed car is covered for more than the value. When you get a new car the value is worth less than the loan and gap coverage is what pays that difference should the car be totaled out or stolen.
To make sure you are getting all of the coverage you need you can get quotes with as little information as just your zip code. Get your Michigan car liability insurance policy quotes today to begin making smart policy choices.
