Ann Arbor Auto Insurance Recommendations
Auto insurance requirements vary from state to state. Each location has its own unique set of rules, regulations and mandated coverages for the operation of any motorized vehicle. With the most in-depth and comprehensive no-fault auto insurance system in the United States, Michigan provides its citizens with some of the best protection money can buy. Having this knowledge prior to searching for and purchasing Ann Arbor auto insurance is critical prior to making any phone calls or any inquiries. Knowledge is power. And in this respect, this knowledge gives you the power to save money. The following paragraphs discuss the minimum requirements for Michigan auto insurance, and ends with a succinct recommendation on how to save money.
As previously mentioned, Michigan requires the very best in auto accident coverage. Furthermore, this requirement also carries substantial penalties for those not abiding by them — to include a fine from $200 to $500 and/or up to one year imprisonment and/or up to 30 days license suspension. Before inquiring about Ann Arbor car insurance quotes, the informed consumer must understand the three basic parts of auto insurance. These include Personal Injury Protection (PIP), Personal Property (PP) and Residual Bodily Injury and Property Damage Liability Insurance (BI/PD).
Personal Injury Protection (PIP) is the portion of your insurance that pays for medical costs incurred as the result of your accident. This is in contrast to Personal Property (PPI), which reimburses others for any damage your vehicle inflicts on their personal property. This property can include another’s vehicle, house, fence, etc. The last major category of Ann Arbor auto insurance is Residual Bodily Injury and Property Damage Liability Insurance (BI/PD). This covers any additional defense costs or damages for an accident that you are deemed liable. Commonly referred to as 20/40/10, this category requires $20,000 coverage for every person injured, $40,000 for an accident that involves several people and $10,000 for property damage. These requirements and coverages are an absolute must, and represent the bare minimum requirement for operating a vehicle legally in the state of Michigan.
The above paragraphs delineate the state mandated coverages for Ann Arbor auto insurance. Armed with this information, the consumer can negotiate with insurance companies for the best deals. When this informed consumer makes their inquiries, it will be obvious that he/she has done their homework, and the salesperson or customer service representative will certainly take note. Which leads to the best recommendation on how to save money with auto insurance — shop around. Period. Although it may be tempting to simplify the process with one phone call or e-mail, it pays to shop around. With companies agressively vying for your business, an educated and savvy consumer can save hundreds, if not thousands of dollars a year.
