Insurance Requirements

If you are the owner or registrant of a vehicle required to be registered in Michigan, then you are required by law to carry a no-fault automobile insurance policy.  Required coverages include bodily injury/property damage (BI/PD), personal injury protection (PIP), and property protection insurance (PPI).  These required coverages do not pay for damage to your vehicle nor do they cover theft.  If you want your insurance company to cover damage to your vehicle or to cover theft, you may choose to carry collision coverage and/or comprehensive coverage.


If you finance a new or used vehicle, your lender may require that you purchase comprehensive and/or collision coverage.  If you do not have these coverages, your lender may require that you pay the cost of collateral protection coverage.  The cost of collateral protection insurance is often much more expensive than collision and comprehensive coverage.  The cost is made part of your loan payment.  Collateral protection insurance protects only the lender's interest in the vehicle and compensates the lender in case of damage to the vehicle.