Ask an Agent: Recommended Minimum Coverage in Michigan?
Q: I am new to Michigan, therefore unfamiliar with “no-fault” auto insurance. What is the recommended (minimum) coverage I obtain?
A: The no-fault law and minimum policy limits were put into effect in 1979. The state says that the minimum coverage allowed is $20,000 per person/$40,000 per accident and $10,000 for property damage. A lot has changed since that limit was set 38 years ago. Think about what you could buy with a $100 then vs what you can buy with a $100 today. Unfortunately, when someone sues today, they don’t sue for $20,000/$40,000/$10,000. I would say you should look at your assets and future earnings to determine the limit that would best fit your needs. Keep in mind, in the event of a claim where you are sued and the judge awards a limit in excess of your policy, the portion not covered by your policy would be your responsibility.
Tammy Clementz, CSA
32 years’ insurance experience
19 years at BHS Insurance
Email me! firstname.lastname@example.org