Personal Injury Protection (PIP) is a requirement in the state of Michigan when applying for medical insurance in your vehicle coverage. The Personal Injury Protection most of the time is separated from medical insurance since this special kind of insurance is complementary. It is also important that you must first understand the conditions and terms of an insurance contract before you enter an agreement of committing yourself to insurance coverage. The law in some parts of the United States may not require Personal Injury Protection. However, it is still a practical choice to have Personal Injury Protection for you. Here are some of the advantages of having Personal Injury Protection from your medical coverage in your car insurance:
The coverage of Personal Injury Protection isn’t limited to accidents only inside the perimeters of the insured vehicle. Even if you get hit by an uninsured or underinsured vehicle while you are outside of your car, PIP still considers you as their liability and the coverage of the PIP is still in effect.
Even the passengers of your car are covered by the PIP
Personal Injury Protection also covers pedestrians who get hit by your car. May it be the fault of the vehicle driver or someone else who used the insured vehicle. This protection also covers relatives and other people who live with you and use your car.
If your insured vehicle meets an accident outside the state of Michigan, Personal Injury Protection still will take responsibility to you, your passengers, and even pedestrians who get struck by your car as long as it is in the jurisdiction of the United States and areas that are under the country’s territory such as Canada.
If the driver dies due to the cause of the vehicle accident, Personal Injury Protection will shoulder a certain amount in the funeral expenses (most of the time starts with $1000) of the vehicle’s driver. The protection program pays an income continuation benefit of $10,000 to the insured upon his or her death.
While the driver is still under the medication process as a result of the vehicle accident, Personal Injury Protection will shoulder the lost wages or salary that the driver didn’t receive from his or her employer. This compensation will continue for 52 weeks with a limit of only $1250 a month depending on the terms of the agreement.
Personal Injury Protection gives a mandatory payment to damaged properties brought by the accident, however; the insurance company still has the authority to assess how much collateral damage must be paid by the insurance company to the affected party.
Essential service benefits are also given by the PIP since you will have to pay someone else to do the housework for you and other tasks such as taking care of your children and washing the clothes. This coverage is entitled to the insured until the day he or she gets well from the accident.
These benefits are the standard benefits that are required by the law in the state of Michigan however, this may also differ in different states in the United States. Always read first the insurance agreement before signing in order to know what these insurance companies will cover or protect you from. Citizens Insurance may be the choice you need.
Many People Find Auto Insurance as an Additional Expense in their Pocket
Some people may seem to think that getting auto insurance is a waste of money since you have to pay for it. But aside from the amount that you need to pay on your premium, you will also be protected in different ways. It provides protection for you and for accidents.
Anyhow, you have to look at it this way, driving without insurance is a bad idea. It might cause you a lot of trouble and sooner or later, you’ll definitely see yourself hurt by the amount of money you’ve spent on your pocketbook. It can be helpful on the part of the driver having auto insurance.
Consequences for Not Having Auto Insurance in Michigan
Many people are now struggling to cut back in different ways they never had before, the number of people driving on the roads without auto insurance is climbing at a rapid rate. Those numbers are about to hit seventeen percent or higher within the next few years. But the good news is that different states in the US are finally starting to crack down on their auto insurance compliance and Michigan is the one leading in the field. While other states are loose in implementing policies for drivers who decide to drive without any insurance, the state of Michigan stands firm in cracking down those uninsured drivers.
Registering your vehicle with Michigan DMV will require you to show proof that you will not be driving without auto insurance. They will also require you to have documentation stating that your car is covered under Michigan minimum car insurance requirements. After issuing your registration, drivers must understand that as long as the car is registered to their name, they will have to pay the insurance, as it is a requirement. Failure to comply with the requirements will result in a breach of contract and will be punished according to the law.
What if you get caught in Michigan driving without insurance?
If an individual is caught on highways in Michigan without any insurance on their car you’re going to be required to appear to a judge. If the judge finds you guilty of driving on the road without insurance, they will implement a fine and you may have to pay to have your vehicle towed and will have your driving privileges suspended for about a year or more. Then you will find yourself spending too much time over the next three years producing evidence of insurance in the form of your SR-22.
The SR-22 is a form sent to insurance providers that will guarantee that you’re not driving without any insurance and states that you have purchased car insurance to meet the driving requirements in the state of Michigan. If you’re caught driving without insurance, you need to have your license reinstated. If you have been involved in an uninsured accident, you have to apply for hardships or probationary permits or must produce proof of liability insurance at the time of registration of the vehicle.
You can easily find good insurance rates just by comparing quotes on reputable sites like Young America Insurance. If you are going through a difficult financial situation you can get now and pay later auto insurance. But by no means drive without insurance as it can have catastrophic consequences.