The Great Lakes State covers two peninsulas, linked by the Mackinac Bridge, and boasts more than 120,000 miles of roads. Because some 85% of the population live within 2 miles of the state highway system, those roads tend to be busy commuter routes. In 2007, almost 325,000 traffic accidents were reported, an increase of almost 3%, with 1,084 killed and 80,576 injured indicating that more insurance than the basic minimum is desirable.

Through this site, it is easy to find good value auto insurance policies. The main types of insurance policy to look for are:

1. Liability
2. Collision/Comprehensive
3. Uninsured/underinsured driver
4. No fault/Personal Injury Protection

Almost all US States require drivers to carry a minimum level of liability insurance as a condition of driving on the public roads. This gives some protection to anyone who is injured or who suffers damage to their property in a traffic accident. If you do not have a valid insurance policy, prosecution and a fine are the usual consequences. Convicted drivers may also lose their license to drive.

You will find detailed help on the website operated by the Michigan Office of Financial and Insurance Regulation (OFIR) at http://www.michigan.gov/dleg/0,1607,7-154-10555_13222_13224-66774--,00.html. As a consumer with a question about auto insurance, you can call directly: (517) 373-0220 or (877) 999-6442. This site is useful not only as a guide to finding liability and other auto insurance cover, but also because it contains information about the complaints system.

In Michigan, every vehicle driven on a public road must carry a no-fault policy. This insurance requirement is divided into three parts:

1. Personal Injury Protection (PIP) which covers all your medical costs if you are injured in a traffic accident.
2. Property Protection Insurance (PPI) which cover up to $1 million for the damage caused by the way you drive your vehicle whether that is damage to another vehicle or damage to buildings, fences, etc.
3. Residual liability insurance to pay your defense costs and any damages you are assessed as liable to pay for:
(a) for bodily injury: up to $2o,000 per person and no more than $40,000 per accident distributed equally among all those injured; and
(b) for property damage in another state: $10,000.

The rules are set out and explained on the OFIR website. Alternatively take advice on exactly what is required, and what may or may not be included in each policy you are offered by insurance companies.

No other insurance is required to drive in Michigan. This system gives you a good margin of protection for personal injuries (remember to check the relationship between the mandatory cover and your own health insurance policy) and damage to the property of others. But there is no mandatory insurance for your own vehicle or property. It is therefore worth topping up the insurance cover if you have a vehicle that would be expensive to repair or replace. If you have an auto loan or use a rental vehicle, you may also be required to carry additional cover. The main options are as follows.

Collision covers the damage to your own vehicle if it is involved in an accident — almost always subject to a deductible. This will either be the cost of repair or, if repair is uneconomic, the fair value of the vehicle.

Comprehensive covers all the other situations in which your vehicle may be lost or damaged, e.g. through theft, vandalism, storm damage, etc.

You should also consider carrying uninsured or underinsured cover against the risk that the other driver(s) involved in the accident either drive off without identifying themselves or do not carry insurance, whether at all or sufficient to pay for your losses.

Think about GAP insurance to cover the difference between the amount owing on an auto loan or long lease, and the amount you recover as fair value when your vehicle is totaled.

You should look for specific terms to compensate you against your own loss of use, rental of an alternative vehicle and the cost of towing your vehicle to a repair shop. A final issue to consider is whether your household policy covers any personal property damaged in the accident. If not, separate cover should be put in place if you regularly wear expensive clothing, jewelery, watches, etc. and/or carry expensive property like a laptop.

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