Uninsured motorist pays what you would be legally entitled to collect for injuries caused by an uninsured driver.

Collision coverage pays for damage to your car if it rolls over or collides with something. There are three forms of Collision coverage available:

1. Regular or standard – pays for damage to your vehicle, regardless of who is at fault. You always pay the deductible amount.

2. Broad – pays for damage to your vehicle regardless of who is at fault for an accident. But, if you are more than 50 percent at fault you pay the deductible.

3. Limited – pays for damage to your vehicle only if you were not more than 50 percent at fault in an accident. Comprehensive coverage pays for damage to your car resulting from causes other than Collision, such as fire, theft and vandalism.

Benefits are paid to a victim in an accident by their insurance company. Benefits covered include:

• Reasonable & necessary medical expenses.
• Up to three years loss of wages.
• $20 per day for services you cannot perform.
• Benefits for your dependents if you are killed.
• Funeral and burial expenses.

State law requires all Michigan motorists to have at least three policy coverages. These are called Personal Injury Protection, Property Protection, and Residual Liability. These are the only coverages mandated by the state. If your car is financed the lender typically requires that you  also carry collision and comprehensive coverage to pay for vehicle damage and loss.

Road service is available on auto policies. The policy covers towing anywhere up to 15 miles or to the nearest place of repair up to $300.

As long as you carry comprehensive and collision coverage on at least one vehicle on your auto policy you will be covered in the event you rent a car and there is physical damage to that rented vehicle.

Here are the actions you should take in the event of an accident:

• 1. Call the police
• 2. Report all injuries to your insurance company immediately
• 3. Obtain the other party information including name, address, license plate number, and insurance provider
• 4. If there are witnesses, request their name & contact information
• 5. Report the loss to the insurance company as soon as possible.

In 1973, Michigan’s no fault law took effect. It is an auto insurance system that allows claims to be paid more quickly. Generally, your policy takes care of you; the other driver’s policy takes care of him/her.

• 1. Drive less and carefully.
• 2. Select your car wisely and call your agent for an estimated quote.
• 3. Coordinate Personal Injury Protection coverage.
• 4. consider higher deductibles.
• 5. Do you have an older car?  consider dropping Collision and Comprehensive coverages

The MCCA reimburses auto no-fault insurance companies for each Personal Injury Protection (medical) claim paid in excess of $480,000. That means that the policyholder’s insurance company pays the first $480,000 of medical expenses and the MCCA reimburses for costs over that amount. The law requires all insurance companies in the state of Michigan to be members of the MCCA. Insurance companies pay an assessment to cover MCCA’s liabilities, the cost is passed on to the policyholders.