Michigan is ranked as one of the states that have the highest automobile insurance premiums in the country. This is because, unlike many other states, Michigan is considered a no-fault state. This means that every driver in the state is required to carry two different types of no-fault automobile insurance policies.

The first type of no-fault policy that Michigan drivers are required to carry is the personal injury protection insurance policy. Drivers are required to maintain an amount of coverage, of this type of policy, to meet all medical expenses that occur from an automobile accident. This policy has an unlimited maximum payout for any medical expenses including physical rehabilitation. The policy will also pay for three years worth of lost compensation due to injury or death in the event of an automobile accident. The policy typically pays out a maximum of over four thousand dollars per month to the recipient during the three year period.

Michigan drivers are also required to carry property protection insurance too. This insurance policy will pay up to one million dollars for any property damage that occurs during an automobile accident. This includes the person’s vehicle and any other type of personal property that is damages such as houses, fences, etc.

These residents are not required to carry comprehensive or collision insurance policy clauses. They are also not required to carry underinsured or uninsured motorist clauses on their insurance policies. This is because the policies required will cover all expenses for any person injured in the automobile accident. This is true whether the accident happens in the state of Michigan or in any other state.

By requiring all drivers in the state to carry these types of insurance policies, the state has been able to drastically reduce the amount of civil lawsuits that are filed every year. This has helped allow the courts to focus on more pressing matters than civil lawsuits. Residents are also able to obtain all medical treatments that are necessary without having to fight insurance companies to obtain the needed treatments. They are also able to obtain these treatments as soon as possible since there is no debates on who was at fault when the accident occurred.