What two types of car insurance is mandatory Why?

Auto liability coverage is mandatory in most states. Drivers are legally required to purchase at least the minimum amount of liability coverage set by state law. Liability coverage has two components: Bodily injury liability may help pay for costs related to another person’s injuries if you cause an accident.

What PIP coverage should I choose in Michigan?

The new PIP choice is for the medical and attendant care benefits, which comprise most of PIP’s traditional expense. But all Michigan drivers will still need to purchase traditional PIP survivors’ benefits, funeral expenses and replacement services. That coverage will be mandatory.

Do you need car insurance and drivers insurance?

Contrary to popular belief, car insurance typically follows the car — not the driver. If you let someone else drive your car and they get in an accident, your insurance company would likely be responsible for paying the claim, depending on the coverages in your policy.

What is the difference between car insurance and drivers insurance?

When car insurance follows the driver Although car insurance primarily follows the vehicle, some of the coverages listed above benefit the driver instead of the car itself. These coverages “follow the driver.” There are a few situations when car insurance follows the driver instead of the car.

Do you need PIP insurance in Michigan?

PIP is required in Michigan. Also referred to as “personal protection insurance” or “personal injury protection” insurance, PIP is one of the mandatory auto insurance coverages under the No-Fault law. Anyone who drives regularly in Michigan must have it.

How much is PIP in Michigan?

OfficialCarInsurance

Health care option	Type of driver	PIP price per year
Coordinated	42-year-old married man	$582
30-year-old single man	$414
Noncoordinated	42-year-old married man	$592
30-year-old single man	$422