Auto Insurance

Car insurance

At Loyalty Insurance, we offer only the best to our clients! We understand that interpreting complicated insurance jargon may be a challenge to our clients. We make an effort to help them feel comfortable and assist them in understanding the nuances of the policies.
Evidently, unfortunate incidents can get the best of us. During such time, when you have to file a claim, you’ll feel the difference while working with us. We pride ourselves to be sensitive to our clients’ requirements especially when they are feeling extremely vulnerable. So let’s explore this realm of Auto Insurance – how it specifically works in Michigan and our role as facilitators.

What is Auto Insurance?

An auto insurance policy consists of set payments periodically made to the insurance providing company based on the buyer’s chosen coverage plan. The idea is to rescue the buyer, or the assigned drivers, and its passengers from burdening financial expenses that may occur in case of a car crash or any motor-related accident. Auto Insurance is mandated in all states.

How does auto insurance work specifically in Michigan?

The state of Michigan has a “no-fault car insurance” policy – it exactly means what the phrase suggests – policy has to cover all the expenses including bodily harm and car damages regardless of who causes the accident. Under Michigan’s basic no-fault auto insurance policy the following coverage is included:
Personal Injury Protection (PIP):
In an unfortunate event of a car accident, if you suffer from any injuries, under PIP all your medical expenses will be covered. PIP also offers the option of synchronizing with your health insurance. If you choose to go the health insurance route, it will pay up to the limit of the policy and the rest will be covered by PIP. It also offers coverage to people who cannot resume their regular work. Since the coverage limit may change annually, we highly recommend inquiring more about this option with your trusted agent.

Property Protection Insurance (PPI):
Under PPI coverage, you can expect a payment up to a million dollars for damages including properties such as buildings and residences. PPI also assures to provide coverage for a car that is legally parked. However, no benefits are extended to a moving car involved in an accident under this coverage.

Residual Bodily Injury/Property Damage Liability Insurance (BI/PD)
Under the BI/PD, you can expect your defense costs, expenses for property and auto damages and injuries caused to others, covered up to the limit of your given policy. Michigan’s no-fault insurance will protect you from being sued, however exceptional situations include –
1. You have caused an accident that killed or seriously injured someone
2. You were involved in an accident with a person, who is not an in-state resident neither is driving a Michigan registered car.
3. You are a resident of Michigan driving outside of the state
4. Involved in an accident where you are at least 50% or more than that at fault while causing uninsured damages to someone’s car – in such cases, you may be sued up to $1,000
In-state residents also need to know that based on Michigan’s no-fault insurance policy, it will not cover damages to your car. Car owners will have to invest in other optional types of insurances that will cover damages to personal cars, known as “Collision Car Insurance.”
Several options are included under this category; we highly recommend discussing your requirements with one of our qualified agents to help you identify a better policy for your intended purpose.
Finally, we want our clients to know that insurance rules and policies are subject to change; however, consider us your best friend and feel free to approach us at any instance. Your friendly, neighborhood agent will always be there for you!

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