If you live in Michigan and you own a motor vehicle, you are required by law to carry a minimum amount of liability insurance. In Michigan this is known as Michigan No Fault Insurance. Without this type of insurance coverage, you can get into a lot of trouble. If you get caught driving in Michigan without the proper amount of insurance, you are subject to fines, suspension of your driver’s license, suspension of your vehicle registration, and even jail time if you are a repeat offender. You don’t have to get full coverage to be able to legally drive in the state of Michigan, and there are many ways that you can get discounts to save money on the amount of coverage you do need to have.

What Are You Responsible For?

When you drive in Michigan you must carry a minimum of $20,000 coverage for one person (bodily injury coverage) and $40,000 in bodily coverage for one accident in total, in addition to $10,000 in property damage liability coverage. Your insurance card must be in your vehicle at all times. If you are stopped and you can’t show proof of insurance, you may be subject to having your driver’s license suspended.

If you can’t provide proof of insurance, your places may be cancelled or suspended. You can’t renew, replace or transfer your license plate until you are able to show that you have the required amount of insurance coverage, and you may even have to be able to provide proof that you have had insurance on your vehicle for a minimum of six months. You may also be required to pay a fee of $50, as well as other required fees.

Rental Cars

If you are using a rental car, you are still required to have the minimum amount of liability insurance. Most insurance policies will cover you if you are using a rental car, and it works the same as your regular insurance policy, from deductibles to coverage. Some credit card companies will provide this coverage if you use their cards to pay for rental cars.

Uninsured/Underinsured Drivers

Unfortunately, many people continue to drive without having insurance coverage. These people, like those who have insurance, get into accidents. When they get into accidents, there is no insurance to cover your damages if they are at fault, or to cover their own damages no matter who is at fault. This coverage is not required by law in Michigan, but it is handy to have, just in case.

Excluding Household Members from Your Auto Insurance Coverage

Insurance companies are allowed to ask you to list all of the members of your household before giving you an insurance policy. This is so they can look at their driving records and make sure that they are not insurance risks, which will raise your rates. If there are members of your household who will not be driving your vehicle at any time, you can exclude them from your policy in order to save some money. You can never allow these people to drive unless you decide to include them on your insurance. They will not be covered otherwise.

Try to Maintain Good Credit

One way to save money on your auto insurance is to maintain a good credit rating. When you have bad credit, you are considered an insurance risk. This is because not paying your bills or not paying them on time shows a lack of responsibility on your part. The better your credit rating is, the better your insurance rates are going to be. Insurance companies in Michigan are allowed to check your Personal Credit History in order to decide which rate to charge you for your auto insurance.

Get Your Insurance Quotes Today

It is wise to get as many quotes as you can from a variety of insurance companies. They all have different rates for the products they offer, and not all insurance companies offer the same insurance products. When you have quotes, you can study them to find out which insurers are offering the most protection for the best price. You can get multiple quotes online without having to enter any personal information and you will never be contacted by insurance agents until you are ready to buy your policy.