Rochester Hills Car Insurance
If you live in Rochester Hills, Michigan, you are required by law to purchase car insurance in order to legally drive your car. While car insurance is a requirement that you cannot avoid, you do have a say in how much you will pay for your coverage and which company you will do business with.
Buying car insurance can be a daunting task, but if you use valuable resources to your advantage you may find ways to satisfy the state law and still save money in the process.
One of the most difficult things about researching insurance is that there are so many different platforms with so many different pieces of information. In addition, a lot of the information that is found on the Internet and in pamphlets and brochures is not specific to Rochester Hills or Michigan.
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If you are looking for information that focuses specifically on auto insurance in Rochester Hills, read this guide so that you learn what you need to know to be an informed consumer.
What type of insurance must you carry in Rochester Hills?
Auto insurance laws vary from state to state throughout the globe, but most states have laws that are similar. However, Michigan has unique auto insurance laws that can be confusing to people who are used to living in another state.
Before you assume that you are complying with Michigan's laws, you need to be sure that you understand how Michigan law differs from the auto insurance laws in other states.
Like all Michigan consumers, you are required to comply with the mandatory no-fault insurance laws when you own vehicles that are registered in the state for more than six months out of the year.
Not only must you have no-fault insurance to get your plates, but you will also need to maintain your coverage continuously to keep your plates and your driving privilege.
What is no-fault insurance?
States either operate under a tort system or a no-fault system. Tort systems are those in which drivers who are found to be primarily responsible for accidents are required to pay for the damages that are sustained in losses. No-faul is the most common type of system in America today.
No-fault systems are those where drivers who have a claim for injuries will go to their own insurer to receive a payment for their claim. The purpose of this system structure is to free up the civil court system and reduce the cost and time it takes to settle a claim.
Today, no state has a purely no-fault system. There will always be scenarios where the injured party has the right to sue or to collect from the other driver. There will always be out-of-state drivers and people who carry tort-based insurance as long as all states have different arrangements.
Michigan has a very unique no-fault system with more generous benefits than the other 11 states that have some sort of no-fault structure.
What are the coverage requirements in Rochester Hills?
A no-fault policy in Rochester Hills includes more than just no-fault personal injury protection coverage. It consists of three basic parts of coverage that you are required to purchase by law.
These three parts of coverage include: personal injury protection, property protection, and residual bodily injury and property damage. Here is a breakdown of how each of these benefits work:
– Personal Injury Protection (PIP)
Personal injury protection covers all of your medical expenses that are considered reasonable. One of the things that separates Michigan PIP from other types of medical or PIP coverage is that there is no limit to how much your medical expenses can be.
In addition to medical expenses, your lost wages will be covered up to $5,189 per month if you are hurt and cannot return to work. The coverage will pay for a maximum of three years.
If you need a housekeeper or someone else to help you with your errands or maintaining your home, you will receive $20 per day in coverage. The broad nature of PIP coverage is what separates Michigan from other states.
– Property Protection (PPI)
PPI will pay for damage that you cause to property that you do not own. This coverage will pay up to one million, but only when the damages are caused within the state.
– Residual Bodily Injury and Property Damage
There are situations where people can sue you for their damages. If you did not have any form of liability coverage you would have to pay out of pocket to do so. For this reason, the state of Michigan requires that you carry residual liability coverage.
Bodily injury will pay if someone is seriously injured or dies in an accident that you cause. Property damage will pay to repair or replace property that is damaged outside of Michigan. You must have no less than $10,000 in property damage, $20,000 for each person in bodily injury, and up to $40,000 for each accident in bodily injury.
Penalties for Driving Without Insurance
Just because no-fault insurance is the law does not mean that all residents carry insurance. In Michigan, the statistics show that 19 percent of drivers do not have no-fault insurance even though it protects them. In Rochester Hills alone, 13,860 people choose not to comply with the law for one reason or another.
If you choose to drive without coverage, you are at-risk of not having any coverage to pay for your medical bills should you be in an accident. In addition, there could be monetary fines and other punishments imposed by the court.
If you drive without insurance, you face a misdemeanor charge, and you may be fined up to $500. It is also possible for you to be sentenced to jail for one year and have your license suspended for up to 30 days.
Other Forms of Coverage That You Can Buy
Michigan laws protect you better than the laws set in other states, but you should consider the other forms of coverage that are available to you. If your vehicle is owned by a finance company, you are required to protect the finance company's asset by carrying physical damage coverage.
Physical damage coverage will pay for damage to the covered car because of a fire, theft, vandalism, riot, explosion, hail, or glass breakage. Collision will pay when you collide with a person, car, or other object.
You may also be able to add rental car reimbursement and towing coverage to supplement your protection while you are on the road.
How to Choose the Right Insurance Company in Michigan
Buying insurance in Rochester Hills can be confusing because of the unique requirements, but if you choose the right company, you will feel good about the choice that you make.
There are hundreds of different licensed insurance companies that can legally sell products to residents like you. However, be sure that you check the licensing status of any provider before you make your choice.
As long as the company is recognized by the Department of Insurance and Financial Services, you will have consumer protection. The department requires that all licensed companies meet a certain standard. To ensure this standard, the department investigates any company accused of breaching the conditions.
Here are some of the factors that matter to the Department of Insurance and Financial Services:
– Financial Status
You should always make financial security a priority when you are comparing different providers. A company that does not have the money to cover claims is not a company that you want to pay to protect you.
You can find the financial rankings of companies by accessing sites like A.M. Best. Type in the name of the company and review the letter grade that it has been assigned. The letter grade corresponds to the company's financial records.
– Complaints
Every company that is licensed by the department has a complaint file. If that complaint file shows a trend in complaints, then you may want to reconsider doing business with that entity.
You should review the complaint index of all insurers and see if they have been found guilty of fraud, misrepresentation, or other violations.
Now that you have read through this guide to Rochester Hills car insurance, the next step is to compare premiums. To comparison shop as quickly and efficiently as possible, use an online rate comparison tool.
By using this kind of tool, you will find the most affordable rates for Rochester Hills car insurance.
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