In Michigan, drivers are required to purchase three coverages: Personal Injury Protection which provides medical benefits for you; Property Protection covers property of others you hit; and Residual Liability provides legal benefits if you are sued. Here's the breakdown:
PERSONAL INJURY PROTECTION:
Benefits are paid to accident victims by their own insurance company. These include the following:
Unlimited, lifetime reasonable and necessary medical expenses.
Work loss benefits up to a maximum of $5,452 per month (currently) for three years. This is subject to an annual cost-of-living adjustment. Higher benefit limits may be purchased.
Up to $20 per day, for a maximum of three years, for "replacement services." This pays for services which the injured person cannot perform.
Funeral and burial expense benefits.
Personal Injury Protection coverage applies to accidents occurring throughout the US and Canada.
This provides coverage for damage caused by your car to property of others (except moving vehicles), regardless of fault. For example, if you hit a properly parked car or a fence, your insurance would pay for the damages to the other car or the fence.
RESIDUAL LIABILITY INSURANCE:
This provides protection if you are sued or legally responsible:
In accidents involving death, serious impairment of body function or permanent, serious disfigurement.
When actual economic losses sustained in an accident exceed the Personal Injury Protection benefits available.
In accidents occurring outside of Michigan, for property damage and bodily injury.
The minimum required limits of this coverage are $20,000 for one person's injury, $40,000 for all persons injured in one accident and $10,000 for property damage. Higher limits may be purchased and are recommended.