Q: I am new to Michigan, therefore unfamiliar with “no-fault” auto insurance. What's the minimum amount of coverage you would recommend?

August 16, 2018


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/person, $40,000/accident, and $10,000 for property damage. With that being said, 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. Along the same lines, when someone sues today, they don’t sue for $20,000, $40,000, or $10,000.

I would say you should look at your assets and future earnings to determine the limit that would best fit your needs. It's important to keep in mind that 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.

Answered by:

Tammy Clementz

Account Manager

32 years’ insurance experience, 19 years at BHS Insurance

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