Liability and property damage car insurance: what you need to know | Michigan Automobile Law

Liability and Property Damage auto insurance – also more commonly referred to as PLPD – describes the minimum amount of auto insurance a vehicle owner must have to comply with the auto insurance requirements of the state in which they reside. and where the vehicle is registered.

It is important to remember that property damage liability coverage is not the same as comprehensive coverage. The first meets the minimum requirements of the law, ensuring that a vehicle has the mandatory covers. The latter includes all the coverages required by property damage liability as well as additional but optional coverages such as uninsured motorist and underinsured motorist coverage and collision coverage.

What does auto liability and property damage insurance cover?

In Michigan, the main protections covered by liability and property damage automobile insurance include: (1) payment of your medical expenses after you are injured in an accident; (2) reimburse you for lost wages that you could not earn because your accident-related injuries prevented you from returning to work; and (3) help you pay compensation for pain and suffering and economic damages that you may be liable for if you cause an accident that injures someone else.

How does liability and property damage insurance pay for medical expenses and lost wages?

A person’s medical expenses related to an accident are paid by Michigan No-Fault PIP auto insurance up to the level of medical benefit coverage selected in the policy under which they are claiming benefits.

Lost wages are also paid through the No Fault PIP and are generally payable up to three https://www.wardbarnes.com/what-should-i-expect-from-my-personal-injury-lawyer/years to from the date of a crash, but they are subject to a monthly maximum.

What is the minimum amount of liability coverage required?The minimum amount of bodily injury liability coverage a vehicle owner must have to satisfy Michigan’s personal liability insurance requirement is $250,000/$500,000. However, the law allows drivers to purchase a lower minimum limit of $50,000/$100,000.

What material damage is covered?

There are two types of property damage that are covered by Michigan’s liability and property damage insurance requirements.

First, a person must purchase “property protection insurance” – also known as PPI – which pays up to $1 million for damage to another person’s tangible property, such as buildings, fences, trees and safely parked cars.

Second, a person must have at least $10,000 coverage that applies when they are at-fault in an out-of-state accident that causes damage to another person’s vehicle.

How do I upgrade from liability and property damage coverage to comprehensive coverage?

Simply put, you get comprehensive auto insurance by purchasing the optional coverages that don’t have to be purchased as part of a liability and property damage insurance policy.

Specifically, to get full coverage, you also purchase the following:

  • Higher levels of medical benefit coverage, such as unlimited or $500,000.
  • Limits of liability that exceed the legal minimum.
  • Collision insurance, which protects you if your vehicle is damaged in an accident.
  • Comprehensive coverage, which protects you if your vehicle is stolen, destroyed by fire or damaged by a storm or by an animal.
  • Uninsured Motorist Coverage, which protects your right and ability to recover pain and suffering compensation to which you are legally entitled if you are injured in an accident caused by an uninsured at-fault driver or hit-and-run.
  • Underinsured motorist coverage, which protects your right and ability to recover pain and suffering compensation to which you are legally entitled if you are injured in an accident caused by an at-fault driver who has inadequate liability insurance coverage