When most people think about auto insurance, their first concern is usually how the policy will handle damage to their vehicle. Discussions often center around three key topics: deductibles, the two types of physical damage coverage, and the value of the vehicle (is it worth paying to insure it for physical damage).
The more complex—and often less discussed—aspect of auto insurance involves auto accidents that result in physical injury. Medical expenses from auto accidents are unpredictable, as are potential lost wages and pain-and-suffering judgments. A single accident could result in millions of dollars in damages, depending on who was involved, the extent of the injuries, and who was at fault.
The reality is this: While you can likely figure out how to replace a car, recovering from the financial fallout of a serious auto accident can be far more challenging. The costs of medical bills, lost wages, and court-ordered damages for injuries to others could easily overwhelm your financial resources and negatively impact your quality of life.
That’s why the most critical coverages on your auto policy are Personal Injury Protection (PIP) and Liability Coverage. These coverages are essential for safeguarding your financial future and your family’s quality of life. In Michigan, both PIP and Liability are required to legally drive, but the state’s minimum coverage limits may not provide adequate protection in the event of a major accident. Many insurance agents recommend opting for Unlimited PIP and Liability limits of at least $1,000,000.
Another important coverage—one that’s not required by the state—is Uninsured/Underinsured Motorists Coverage. This coverage steps in when the at-fault driver has no insurance or only carries Michigan’s minimal coverage limits. It can help cover your lost wages, unpaid medical bills, and pain-and-suffering damages, ensuring you’re not left financially stranded due to someone else’s lack of coverage.
As we head into 2025, take the time to review your auto insurance with your agent. Have a meaningful conversation about what your policy can truly do to protect your family’s financial future and quality of life. The right coverage can make all the difference. Contact us today for more information!