General Information about Motor Vehicle Insurance
Michigan has one of the most comprehensive no-fault auto insurance systems in the United States. There are three basic parts to a Michigan no-fault policy that must be purchased and carried on every vehicle. This basic coverage is referred to by many as public liability and property damage, or PLPD. The 3 parts to the Michigan no-fault policy are: Personal Injury Protection (PIP), Property Protection (PPI) and Residual Bodily Injury and Property Damage Liability (BI/PD). PPI pays up to $1 million for damage you cause to other people's property, such as buildings and fences, but not to other cars unless they were legally parked when you hit them. A basic no-fault policy in Michigan does not pay to repair or replace another car or your own car if it is damaged. Therefore, if you want to have your vehicle covered if it is damaged (by you or another driver) or stolen, you must purchase physical damage coverage of collision and comprehensive.
Comprehensive insurance is also known as “other than collision” insurance or “OTC”. It covers damage done to your vehicle from things other than collisions, such as: vandalism, disasters, theft, fire, impacts with animals, etc. Comprehensive does not cover any damage as a result of a collision.