what are the lowest amounts of Liability coverage on an auto do you need to have in Michigan?

Question

and still have full coverage?

and still have full coverage and a low payment?

Answer 1

The state requires that you carry BI (bodily injury) $20,000 per person/$40,000 per accident and PD (Property damage) of $10,000. "Full Coverage" means you also have coverage if something happens to your vehicle due to collision or other peril covered under Comprehensive coverage (like theft, vandalism, hitting an animal for example). You are not required to carry collision or comprehensive, but if you have a lienholder you will need that coverage, and you may want it anyway, even if you own your car outright. If your car is really old, it may not be cost effective to carry comp or collision, but you'd have to make that detemination on your own, knowing that if you have a claim, and there's no "other insurance company" to pay for your damages, you will be out a car, drive a dented mess around, or have to pay out of your own pocket. Other coverages like rental reimbursement are not included normally in "full coverage" so if you don't ask for it, and you don't pay for it, you don't get it!

The minimum limits listed above are the actual state minimum limits. The other information is just general insurance information, and I am not drawing from any state-specific references.

Keep in mind that as far as liability coverage goes, the state minimum is not a lot of coverage if someone gets even moderately hurt. The property damage minimum limit of $10,000 is not a lot of coverage. Most new cars cost way more than that and if you unfortunately have an at-fault accident and total someone's new Toyota Camry for example (or really any car now), that damage will exceed your limit, and you could potentially be exposed personally for the rest. So it is always a good idea to get quotes for higher limits and see what you can afford. Get the highest limit you can afford.

Remember too, that the higher deductible you pick under your comp or collision coverage, the lower your rate will be; however you better be prepared if you have an accident where you are at fault to pay that big $500 or $1000 deductible to get your car fixed (that's just one scenario of course). So think about how much you could come up with if that happened, and if it's not $1k, then consider getting something lower.

Answer 2

$500,000 third party coverage