- Auto insurance is required to drive an automobile legally in the state of Michigan. As part of Michigan's no-fault insurance laws, each auto insurance policy is required to have the following coverages: personal injury protection, property protection and residual liability insurance. Your insurance policy is also required to cover a minimum of $20,000 for injuries or death of one person in a single accident, $40,000 for injuries or death of more than one person in a single accident, and $10,000 of property damage coverage.
- Personal injury protection pays your medical costs to the limit of your policy if you are injured in an auto accident. This coverage also replaces up to 85 percent of your lost wages for up to three years if you are unable to immediately return to work as a result of your injuries. According to the state of Michigan's website, as of October 2010 the limit on income replacement is $4,929 per month. Personal injury protection also covers all members of a policyholder's household, even if they are in another driver's car or struck by another car while walking.
- Property protection as part of an insurance policy pays for damage caused by your car in the state of Michigan to another person's property, such as a home or fence. Property protection insurance also covers a parked car. Property protection insurance does not cover any other instances of damage to an automobile, as that is handled by other forms of coverage in your insurance policy.
- Residual liability insurance protects you from being sued by another person involved in auto accident unless certain circumstances exist. You can only be sued in the state of Michigan for an auto accident if you cause the death of another person, seriously injure someone or cause permanent disfigurement. You can also be sued if you're involved in an accident with a driver who is from out of state or if you get into a car accident while driving your car in another state.
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