Frequently Asked Insurance Questions

What auto insurance coverage do I have to purchase in Michigan?
There are three basic parts to a no-fault policy that must be purchased on every vehicle. They are:
Personal Injury Protection (PIP) - Personal injury protection (PIP) pays all necessary medical costs if you are hurt in an auto accident.
Property Protection (PPI) - Property protection (PPI) pays up to $1 million for damage your car does in Michigan to other people’s property, such as buildings and fences.
Residual Bodily Injury and Property Damage Liability Insurance (BI/PD) - Residual bodily injury and property damage liability (BI/PD) pays your defense costs and any damages you are found liable for as the result of an auto accident, up to the limits of the policy.

How can I reduce my premiums?
There are several ways that you can lower the cost of your auto insurance. If you have full coverage insurance, ask about increasing your deductibles. Having a higher deductible will mean you will pay more out of your pocket if a loss occurs, but it will reduce the amount of premium you pay.
Many of our companies offer discounts for being a homeowner, paying your premium in full or selecting auto withdraw for montly installments, multi-car discounts and maintaining continuous insurance. 
Discounts are also available if you have  health insurance coverage and you “coordinate” your auto insurance with your health insurance. You may not coordinate if you have Medicaid, Medicare or a Medicare supplemental policy.
If you coordinate coverage, your health insurance policy becomes the primary payer for any injuries resulting from an auto accident. If you have health insurance, check with the provider to make sure your health insurance coverage will pay for auto related injuries before you coordinate coverage.

What information should I have available when I contact a company or an agent?
Be prepared to provide personal information such as your address, telephone number, social security number, etc.   We will also need  information about your car and driving record (vehicle identification number, how your vehicle is used, safety devices like air bags and whether you have had any tickets or accidents in the last five years).
You should also review your declaration page of your auto insurance policy for your coverage and limits. The declaration page is the page of your policy that lists all of your current coverages, limits and deductibles, as well as the premium you are paying for those coverages. This information is helpful to un in providing you with a quote.

Why do I need to buy insurance?
  • Protects your assets against attachment as a result of a court award.
  • Provides for cost of defense when you are sued.
  • Allows you to purchase such high value items as a car or a home by insuring the collateral on behalf of the financial institution that lent you the money.
  • Provides financial security for your family in the event of your death.

What is the MCCA fee?
The Michigan Catastrophic Claims Association (MCCA) fee is mandated by the State of Michigan to cover medical expenses in excess of $400,000 (as of 7/1/06) due to injury incurred in an accident involving a vehicle. This fee is charged for each vehicle on the policy. It is paid to insurance companies, who then pay this fee directly to the state.

How does where I live affect my premium?
Where you keep your car directly affects your chances of having an accident or becoming a victim of theft or vandalism. The likelihood of encountering these problems increases in larger, more densely populated cities, while such incidents remain relatively low in rural areas.

Additionally, the police response time, local road and traffic conditions, and the quality of local medical services can affect regional insurance rates. Some insurers even factor in the litigation rates in a given area (how many lawsuits are filed, go to trial, out of court settlements, and their amounts).

What factors affect the insurance premiums I pay?
  • Claims activity including such costs as medical care, auto body repair, construction, legal defense, jury awards, claims adjustment, and insurance fraud.
  • The Insurance companies overhead including rent, utilities, employee salaries and benefits, office supplies, equipment, and furniture.
  • Investment income.
Do all states require some kind of Liability insurance?
No. Although not every state requires auto insurance, some have "financial responsibility" laws mandating all drivers to be able to pay for any damage or injury they cause. However, liability insurance is the best way for you to meet your state's financial responsibility requirements.

By law, all states offer UM and UIM policies, including no-fault states. In fact, some states require all motorists to carry this coverage in order to gain protection from inadequate insurance coverage of other drivers.