Michigan auto insurance rates are difficult for some drivers to afford. Many drivers turn to making changes in the amount of coverage they carry in order to save money. Michigan has a wider range of different auto policies available for drivers, and the money you save can make the difference between being able to drive and having to use public transportation. The minimum coverage levels of Michigan auto insurance is actually quite low. This often leads shoppers to wonder how low is too low. Here are a few important reasons to add higher limits of coverage.
Driving Outside the State
Michigan auto insurance policies have coverage terms that are different than other states. If you regularly travel in other states, you’ll be subject to the laws where you’re driving, not where you reside. That can make your coverage limits far too low if you’re involved in an out-of-state accident with minimum coverage limits. The legal minimum for property damage in Michigan is only $10,000. If you are found at fault in a neighboring state for an accident involving more than that amount, you’ll be personally liable for the difference between the policy coverage and the cost of replacing the other car. Any late model car’s replacement value will exceed $10,000. It’s smart to carry more property damage coverage.
It Makes You A Preferred Risk
Michigan auto insurance uses different criteria to determine which insurance pool to assign you to. One of the ways that this insurance carrier determine whether they want to offer you discounts on your insurance is by the level of coverage you buy. If you purchase a so-called 100/300/100 policy, insurers will consider you a better risk and offer you better rates. The term 100/300/100 refers to $100,000 in bodily injury coverage for each person, $300,000 in total bodily injury for one accident, and $100,000 for property damage that you cause.
Higher Liability Protects You From Big Legal Settlements
Because of the laws in the state of Michigan, big insurance payouts for pain and suffering aren’t as common as in other states. If you’re involved in an accident with a driver in another state, you might have a huge legal judgment against you that you liability insurance couldn’t cover. That would make you personally liable for the difference. While these judgments are usually reserved for cases of drinking and driving and other forms of gross negligence, a few more dollars for liability coverage brings a lot of peace of mind.