No-fault automobile insurance is mandatory in Michigan. Michigan has the most comprehensive no-fault auto insurance system in the nation. If you purchase at least the minimum state requirements for car insurance in MI then according to the Michigan insurance regulator once your vehicle is insured in Michigan, you and your family will be provided with unlimited medical and rehabilitation benefits, wage loss benefits and $20 per day for replacement services for up to three years if you are injured in an auto accident, regardless of fault.

There are three basic parts to a Michigan no-fault policy that must be purchased and carried on every vehicle. They are:

Personal Injury Protection (PIP) - Personal injury protection (PIP) pays all necessary medical costs if you are hurt in an auto accident.

Property Protection (PPI) - Property protection (PPI) pays up to $1 million for damage your car does in Michigan to other people's property, such as buildings and fences.

Residual Bodily Injury and Property Damage Liability Insurance (BI/PD) - Residual bodily injury and property damage liability (BI/PD) pays your defense costs and any damages you are found liable for as the result of an auto accident, up to the limits of the policy. The minimum limits of coverage that everyone must purchase are $20,000 for a person who is hurt or killed in an accident, $40,000 for each accident if several people are hurt or killed, and up to $10,000 for property damage in another state. These minimum limits are often referred to as 20/40/10. You can also purchase additional limits of BI/PD coverage.

Michigan requires each registered car must be insured with at least these 3 types of car insurance coverages. So, yes PIP is required to be placed on your cars. An excess clause as you referred to normally restricts liability upon an insurer to excess coverage after another insurer has paid up to its policy limits. If you are uncertain as to why this remark is on your policy you should speak to your agent since or she is familiar with the specifics of your policy and thus can give you specific information regarding this remark and how it affects your coverages.

Excess of other insurance means that if there is other insurance that should pay for this type of coverage, it will pay first and then this coverage would pay in excess to that coverage. Michigan is a state that provides coverage for force-placed insurance, the required coverage is in excess of other insurance.

Although you do not have a choice about buying auto insurance in Michigan since it is the law, you do have some choices about how much you pay and who you choose as your insurance company. For a Michigan auto insurance quote for your vehicles click here.