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Car Rental In Michigan: Do I Need Insurance?

For a car rental in Michigan, should you purchase the additional insurance coverage offered by rental car companies?

Spending a few extra dollars to purchase the additional auto insurance coverage offered with your car rental in Michigan is a very wise decision — and one that can save you tens of thousands of dollars if you’re ever in an auto accident.

Lawyers will usually tell you that purchasing the additional rental car insurance in Michigan is even a good idea if your rental car is covered under your own No-Fault insurance policy. Here’s why:

  • If another person gets injured – Rental car bodily injury coverage (the amount your insurance will pay to another if she is injured in a car accident) will likely be capped at the minimum required coverage of $20,000, according to Michigan law. This leaves you dangerously exposed to an excess judgment if the injuries you caused are serious.
  • To cover collision damage – Even when the rental car company offers residual bodily injury coverage, it will likely fail to cover vehicle damage and collision repairs. This expensive gap in insurance coverage can result in you having to pay for all the car accident property damage from your own pocket.
  • Long-term car rental agreements – Under Michigan law, a long-term lease of 30 days will make you an “owner” of the vehicle. This is important, because your own Michigan No-Fault insurance policy will not apply to long-term car leases of 30 days or more.

How to protect yourself in case of a Michigan car accident in a rental car

To determine if your car rental in Michigan is covered under your own No-Fault insurance, check your policy or call your insurance representative. Many Michigan insurance companies now have exclusions or exceptions that apply to rental vehicles.

It’s still best to purchase the additional insurance coverage for your car rental in Michigan, even if it may be covered by your own insurance, and even if there are no exceptions or exclusions on coverage.

If you have questions, or have been in a car accident involving a Michigan rental car, feel free to call one of our lawyers at (248) 353-7575, or by filling out our free consultation form. We can answer all of your questions. And there’s no cost or obligation.