Michigan is one of only twelve states in the nation that is a no-fault state. This means that when choosing auto insurance coverage, there are three basic parts that are required that all MI motorists should be aware of. The first of these is Property Protection Insurance (PPI). PPI covers up to $1 million in damages to other people’s property. This means that if a driver’s vehicle strikes another person’s fence or building, then considerable amount of the repair costs may be covered by this mandatory precaution. However, this coverage does not include any damages done to any vehicles or their contents, which includes trailers or the objects they might be carrying.

The second portion of Michigan no fault auto insurance is Personal Injury Protection (PIP), which would pay for any reasonable medical expenses that might come from an automobile accident. It is also possible that a policy holder’s PIP will also pay for up to three years of wages that the driver would have earned if they had not been injured, up to a certain amount. Finally, MI requires Residual Bodily Injury and Property Damage Liability Coverage (or BI/PD). This ensures that if a vehicle owner is in an automobile accident that their defense costs, as well as the costs of any damages that they are found liable for as a result of the accident are covered, up the an amount which was set at the time the policy was added. BI/PD coverage, however, does have minimum limits in it’s coverage. Every holder must purchase $20,000 to cover any person who is hurt or killed in an accident, $40,000 per accident in the event that multiple people are injured or killed, and up to at least $10,000 for property damage that takes place in another state.