An insurance declaration page is a critical part of an insurance policy. Typically sent once or twice a year whenever your insurance policy gets renewed, the declaration page outlines the coverage that you have access to. You will likely have an auto insurance policy or a renters or homeowners insurance policy, depending on your lifestyle and needs. Insurers, banks, and the state can require you to hold certain policies, depending on the circumstances.
For example, the state of Michigan requires drivers to have automobile insurance coverage to address the damages associated with an accident. Michigan has a state minimum, but there are many additional options available to you through your insurer.
Regardless of the policy type, your insurance declaration page will outline these coverage limits. If you need to seek damages due to an injury caused by someone’s negligence, it’s a good idea to have a Michigan personal injury attorney help you out.
What is an Auto Insurance Declaration Page?
The declaration page lets you know precisely what coverage you have. It also outlines your liability limits so you’ll know how much you’re on the hook for in the event of an accident.
Chances are that your declaration page won’t change much over time unless you’re adding or removing vehicles or changing the coverage levels for various reasons. However, taking a few moments to review the page thoroughly is well worth your time.
Insurance companies keep the declaration page in a simple format to encourage you to look it over. It’s broken down into sections because it’s in their best interest — and yours — to agree on the specifics of what is covered.
As your circumstances change, your insurance may need to change, too. For instance, you may have a new driver in the family and need additional coverage. Ideally, your declaration page serves as a reminder to be sure you’ve updated your policy.
What is Auto Liability Insurance and What Does It Cover?
You purchase auto insurance to protect you in the event an accident occurs. Liability insurance covers expenses you incur due to an accident. Liability insurance is relatively inexpensive and is worth buying. Besides, it’s required by law. In Michigan, motorists are required to carry the following policies:
Personal Injury Protection (PIP)
Michigan’s No-Fault policies require drivers to carry PIP coverage. No-fault auto insurance means that people involved in a car accident will first turn to their PIP to cover certain damages, regardless of fault. PIP helps with medical expenses, lost income, and some household expenses costs. PIP can help with some expenses if your loved one passed away in their car accident.
Michigan offers various levels of coverage for PIP:
- Unlimited.
- Up to $500,000.
- Up to $250,000. There is also additional coverage at this financial limit with a PIP medical exclusion.
- Up to $50,000. This coverage is low, but those selecting this level of coverage must have Medicaid coverage, and their household members must be covered by another insurance policy.
- PIP medical opt-out. Anyone seeking this level of coverage must be insured by Medicare A and B, and others in their household must have their own auto coverage or health insurance.
However, a car accident can cause damages and losses well beyond the scope of your PIP policy. You may be able to pursue damages from the at-fault driver for additional PIP costs and other expenses.
Bodily Injury/Property Damage Coverage
Bodily injury coverage is essential. This is how much your insurance company can pay to another person if you cause an accident that injures them.
In Michigan, the minimum you must carry in bodily injury coverage is $250,000, an amount that often doesn’t cover the true costs of many car accidents. In some instances, it is possible to purchase only $50,000 in coverage, but this is highly risky as this amount is rarely enough to cover the costs of injuries from a car accident.
If you don’t have enough insurance, you put your own assets and even future earnings at risk. For this reason, it’s wise to buy at least the $250,000 minimum required by law. That increases the chances that the money to pay for accident-related costs will come from your insurance policy, not your wallet.
Property Protection Insurance (PPI)
PPI helps with any damage caused to someone else’s property, although the property it covers is somewhat limited. Basically, if you crash into structures, your PPI helps pay for this damage. It can also help with any damage done to someone else’s parked car, but the other person must have been parked properly. Otherwise, PPI does not cover damage to vehicles.
What is Uninsured and Underinsured Motorist Coverage?
If you are struck by a driver without insurance or who doesn’t carry enough insurance to cover your losses, your PIP benefits from your own auto insurance policy will pay your accident-related costs up to the policy limits. However, it is possible to purchase uninsured motorist coverage (UM) or underinsured motorist coverage (UIM) to provide an added layer of protection if you are injured in a wreck.
Michigan doesn’t require UM/UIM, but Christensen Law highly recommends that you purchase the maximum amount you can afford. Otherwise, depending on your PIP limits, you may not have enough money to cover your losses if you are catastrophically injured in a car accident.
Additional Auto Insurance Options in Michigan
Car insurance providers also offer additional option coverages to help you with various expenses in a car accident. When making your selections, an insurance agent can answer any questions about the policies and how that will impact your insurance payments. Some options to consider include:
- Comprehensive coverage
- Collision coverage
- Additional policy offerings depending on your insurer
No matter what policies you have, our attorneys can help you make sense of your coverage after a car accident.
How Can an Attorney Help Me With My Auto Insurance Policy?
There’s much more to learn about automobile insurance and how to use it to your best advantage. Like many things in life, it’s best to understand it before you need to use it.
Should you find yourself involved in a Michigan car accident, Christensen Law is standing by 24/7. We will spare no effort in fighting for the payout you need and deserve. With record-setting settlements and verdicts across Michigan, our car accident lawyers are known for delivering justice. Call now to get started.
