Wednesday, June 18, 2008
Auto Insurance Quote
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Michigan No-Fault Automobile Insurance
Personal Injury Protection (PIP)
Property Protection Insurance (PPI)
Optional Automobile Insurance Coverages
Collision Insurance
Comprehensive Insurance
Uninsured Motorists Coverage (UM)
Automobile Insurance Eligibility
Ineligible Persons
Eligible Persons
Saving Money on Auto Insurance
Physical Damage Deductibles
PIP Deductibles
Group Insurance Coverage
Coordination with other Health,Disability Coverage
Senior Citizen and Retiree Discounts(Work Loss Waiver)
How to Use the Survey
Find Your Territory
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Monday, June 16, 2008
Understanding your auto insurance policy
Your insurance policy is a contract between you and your insurance company. It spells out exactly what the company agrees to do in exchange for the premium that you pay. This contract is divided into two sections: a declarations page and the policy itself.
The declarations page
This section of the policy includes basic details of the agreement. It is important that you review this page to make sure all the information is correct and all the coverages you requested are included. The declarations page includes:
Name of the insurance company Name(s) of the policyholder(s) Policy number Policy period Description of the vehicle(s) insured Coverages purchased Limits of liability and deductibles purchased Premium charge for each coverage List of forms that are a part of the policy
The policy
The second part of your insurance contract is the policy itself. This includes:
Insuring agreement Definitions When and where coverage applies Conditions if the vehicle is financed General conditions Mutual conditions Exceptions and endorsements of the policy
Make sure you review your declarations page to verify that your policy includes the types and amounts of coverage you requested.
Saturday, June 14, 2008
No-Fault Automobile Insurance
No-fault insurance is required by law in Michigan. Every car owner must buy certain basic coverages in order to register a vehicle in Michigan. It is against the law to drive, or let your car be driven,without no-fault insurance. The basic no-fault policy has three parts:
Personal Injury Protection (PIP) If you are hurt in an auto accident, this part of
your no-fault policy will pay all of your medical costs. It will also pay, up to a
maximum amount, for the wages you would have earned if you had not been hurt, for up to
three years. In 2007, the allowed amount under no-fault is $4,589 per month. If you are killed in an accident, your policy will pay your family up to the monthly amount for three years, based
on what they would have received from your earnings and fringe benefits. You may also be
entitled to up to $20 per day in replacement services. This is to pay for services you are no
longer able to provide for yourself or your family because you are injured, such as
housekeeping and yard work. You may coordinate PIP coverage with any health or disability policy you have (except Medicaid, Medicare or a Medicare supplemental policy) to reduce your PIP premium. The health or disability plan then becomes the primary payer for medical or
wage loss expenses, and the auto policy would cover remaining medical or wage loss
expenses. These auto insurance coverages are also called excess medical and excess wage
loss. Property Protection Insurance (PPI) No-fault will pay up to $1 million for damage
your car does in Michigan to other people's property, such as buildings and fences. It will
also pay for damage your car does to other people's properly parked vehicles. Residual Liability Insurance⎯BodilyInjury and Property Damage (BI/PD) The no-fault law protects insured persons from being sued as the result of an auto accident except in certain special situations. These are some of the circumstances under which you could be sued: • If you cause an accident in Michigan in which someone is killed or seriously injured. • If you are involved in an accident in
Michigan with a non-resident who is an occupant of a motor vehicle not registered in Michigan.
• If you are involved in an accident in a state other than Michigan. • For up to $500 in damages to another person's car, which is not covered by insurance, if you are 50% or more at fault
in the accident. Your required no-fault policy will pay up to your coverage limit amounts if you are sued or are legally responsible for damages in these situations. The minimum required BI/PD coverage limits are: • Up to $20,000 for a person who is hurt or killed in an accident.
• Up to $40,000 for each accident if several people are hurt or killed. • Up to $10,000 for property damage in another state. These limits are often described as 20/40/10. Courts sometimes award more than these amounts. If this happens, you would be responsible for paying the amount not covered by your policy. To protect themselves, many people buy extra liability insurance.
Personal Injury Protection (PIP) If you are hurt in an auto accident, this part of
your no-fault policy will pay all of your medical costs. It will also pay, up to a
maximum amount, for the wages you would have earned if you had not been hurt, for up to
three years. In 2007, the allowed amount under no-fault is $4,589 per month. If you are killed in an accident, your policy will pay your family up to the monthly amount for three years, based
on what they would have received from your earnings and fringe benefits. You may also be
entitled to up to $20 per day in replacement services. This is to pay for services you are no
longer able to provide for yourself or your family because you are injured, such as
housekeeping and yard work. You may coordinate PIP coverage with any health or disability policy you have (except Medicaid, Medicare or a Medicare supplemental policy) to reduce your PIP premium. The health or disability plan then becomes the primary payer for medical or
wage loss expenses, and the auto policy would cover remaining medical or wage loss
expenses. These auto insurance coverages are also called excess medical and excess wage
loss. Property Protection Insurance (PPI) No-fault will pay up to $1 million for damage
your car does in Michigan to other people's property, such as buildings and fences. It will
also pay for damage your car does to other people's properly parked vehicles. Residual Liability Insurance⎯BodilyInjury and Property Damage (BI/PD) The no-fault law protects insured persons from being sued as the result of an auto accident except in certain special situations. These are some of the circumstances under which you could be sued: • If you cause an accident in Michigan in which someone is killed or seriously injured. • If you are involved in an accident in
Michigan with a non-resident who is an occupant of a motor vehicle not registered in Michigan.
• If you are involved in an accident in a state other than Michigan. • For up to $500 in damages to another person's car, which is not covered by insurance, if you are 50% or more at fault
in the accident. Your required no-fault policy will pay up to your coverage limit amounts if you are sued or are legally responsible for damages in these situations. The minimum required BI/PD coverage limits are: • Up to $20,000 for a person who is hurt or killed in an accident.
• Up to $40,000 for each accident if several people are hurt or killed. • Up to $10,000 for property damage in another state. These limits are often described as 20/40/10. Courts sometimes award more than these amounts. If this happens, you would be responsible for paying the amount not covered by your policy. To protect themselves, many people buy extra liability insurance.
Friday, June 13, 2008
Dear Auto Insurance Consumer:
Each year the Michigan Office of Financial and Insurance Services (OFIS) conducts a survey of auto insurance companies to find out what they charge for different policies in different areas around the state. This rate survey is designed to show how much rates can vary from company to company and to help you find the coverage you want at the best possible rate.
Companies represented in the guide are only those that are subject to Michigan's Essential Insurance Act, which was passed by the legislature in 1979. This Act is designed to make auto insurance available to all eligible Michigan citizens. It also allows companies to set their own rates without the prior approval of the Commissioner of Financial and Insurance Services. This means that a company can change its rates quickly to respond to the demands of the marketplace.
Because there are varying factors that affect what you pay for your insurance, it is not possible to show a rate for every situation. We have instead chosen four examples to represent various insurance purchasers and asked insurance companies to provide a rate for each example in the territories listed as of March 1, 2007. It’s important to note that the rates included in this guide do not include all discounts (e.g., group discount, multi-policy discount, insurance credit score discount) that could reduce your total insurance premium. However, we’ve compiled a list of the most common discounts offered by the companies that participated in this survey, along with some other basic discount information on pages 6-8 of this guide. This list of discounts is NOT a comprehensive list. Companies add new discounts to their programs all the time. Therefore, be sure to ask for a list of discounts that a company offers when you are shopping around for auto insurance coverage.
It is critical when reviewing the survey material to remember that the rate comparisons in this guide are designed to be used as a starting point for shopping for the best automobile insurance rate and do not cover all situations. I sincerely hope that you use this guide as a tool when shopping for auto insurance. To make your shopping easier, we’ve also compiled a list of companies on page 19 that offer a website for consumers to receive a premium quote via the internet. As always, you should contact an agent if you have specific questions regarding coverage. If you need additional assistance, please contact our office toll free at 877-
999-6442 or via our website at www.michigan.gov/ofis.
Companies represented in the guide are only those that are subject to Michigan's Essential Insurance Act, which was passed by the legislature in 1979. This Act is designed to make auto insurance available to all eligible Michigan citizens. It also allows companies to set their own rates without the prior approval of the Commissioner of Financial and Insurance Services. This means that a company can change its rates quickly to respond to the demands of the marketplace.
Because there are varying factors that affect what you pay for your insurance, it is not possible to show a rate for every situation. We have instead chosen four examples to represent various insurance purchasers and asked insurance companies to provide a rate for each example in the territories listed as of March 1, 2007. It’s important to note that the rates included in this guide do not include all discounts (e.g., group discount, multi-policy discount, insurance credit score discount) that could reduce your total insurance premium. However, we’ve compiled a list of the most common discounts offered by the companies that participated in this survey, along with some other basic discount information on pages 6-8 of this guide. This list of discounts is NOT a comprehensive list. Companies add new discounts to their programs all the time. Therefore, be sure to ask for a list of discounts that a company offers when you are shopping around for auto insurance coverage.
It is critical when reviewing the survey material to remember that the rate comparisons in this guide are designed to be used as a starting point for shopping for the best automobile insurance rate and do not cover all situations. I sincerely hope that you use this guide as a tool when shopping for auto insurance. To make your shopping easier, we’ve also compiled a list of companies on page 19 that offer a website for consumers to receive a premium quote via the internet. As always, you should contact an agent if you have specific questions regarding coverage. If you need additional assistance, please contact our office toll free at 877-
999-6442 or via our website at www.michigan.gov/ofis.
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