Frequently Asked Questions
Below are some of our frequently asked questions. If you have any other questions or concerns, please feel free to contact us.
Why do I need PIP on my auto policy?
PIP stands for Personal Injury Protection. This coverage is for YOU and your household members. This coverage is part
of the Michigan No-Fault coverages and provides you with options up to unlimited medical coverage if you are injured
in an auto accident in the State of Michigan. This coverage also provides some additional coverage for lost wages
and other benefits if applicable. Feel free to ask your agent what options are available to you and what coverage’s
are included in your PIP benefit.
Why do you need to know about my medical coverage for an auto quote?
Under the PIP coverage on your auto policy, you are able to coordinate your medical coverage with your health
insurance company, IF your health insurer will pay as the PRIMARY payor for your auto accident injuries. You will
need to submit proof of insurance coverage and a letter from your health insurer.
What is PPI and why is this on my policy?
PPI stands for Property Protection Insurance and provides up to $1,000,000 in coverage for property damage if you are
in an auto accident in the State of Michigan. A separate coverage called Property Damage Liability, which has a
limit stated on your policy declaration page, would apply for any property damage from an auto accident outside the
State of Michigan.
What is Mini Tort or Special Tort Liability?
Under Michigan No-Fault Insurance, each individual is responsible for the damage to their own vehicle and need to
carry collision insurance to cover the damages to their car. However, there is one exception, this is the Mini-Tort
coverage. If you were NOT at fault in an auto collision but sustained damage, you can file a “Mini Tort” claim with
the At Fault Driver’s policy, for your deductible reimbursement or for the damages (if you didn’t have collision
coverage), up to $3,000.00. The coverage on YOUR policy would pay this claim on your behalf to a claimant,
if someone filed a Mini-Tort claim against YOU.
What is the MCCA? Do I need this?
The MCCA stands for the Michigan Catastrophic Claims Association. This association picks up where your insurance
company leaves off, to pay the bills if you are injured in an auto accident. This is what pays for the Unlimited
Medical in the event of an auto accident in the State of Michigan. Each year, the MCCA determines how much money
they need to assess for each insured vehicle to keep the funds in place for the payment of the unlimited medical
coverage. This fee may not be on your policy if you have elected PIP limits lower than Unlimited (Option 1).
What is a Multi-Policy discount?
A multi-policy discount is a credit applied to your policy if you have more than one type of insurance with that
company. Not all companies offer a multi-policy discount, so be sure to ask if your company does. Often times the
discount for having a home or renters policy paired with an automobile policy is quite significant. This is a
discount worth checking out. Some companies also offer a Life Multi-Policy discount, which provides you with an
additional discount on your home and auto policies if you purchase a life insurance policy with them as well. This
discount can often amount to enough savings to cover the cost of the life policy! Be sure to ask your agent about
Does Devette & Ford offer coverage for Seasonal Homes?
Yes! We specialize in seasonal home insurance! Any of our agents would be happy to help you!
Will it affect my insurance if my home is on the vacation rental market?
The short answer is Yes, most likely! Be sure to ask your agent about this before putting your home on the
vacation rental market. Your agent will know if your insurance company allows rentals or not and if you
should add any additional coverage’s. Additionally, your agent can advise you if they need to switch you to a
company that does allow rentals and if so, how many weeks a year you would be able to rent out the home to meet
the company guidelines. The good news is that Devette & Ford specializes in Seasonal and Vacation Rental
business! As independent agents, Devette & Ford has several companies at their fingertips to provide you with
the best coverage options for your specific needs.
Why can’t I just have PL/PD auto insurance?
Michigan No Fault Law requires the following coverage’s on your auto policy:
- Personal Injury Liability (PL)
- Property Damage Liability (PD)
- Personal Injury Protection (PIP)
- Property Protection Insurance (PPI)
- MCCA + Other Statutory Fees
The following coverage’s are OPTIONAL:
- Uninsured Motorist Liability
- Underinsured Motorist Liability
- Mini Tort Liability (Special Tort Liability)
- Collision Coverage
- Comprehensive Coverage (Other than Collision)
- Towing/Road Service
- Rental Reimbursement
- Gap Coverage
- Customized Items
Some companies also offer optional endorsements that provide additional coverage’s, such as new car
replacement valuation and pet liability. Check with your agent to see what additional coverage’s are
available with your insurance company.
Why should I have a seperate boat policy?
Many homeowners companies allow you to add your boat to your home policy. However, these coverage’s are
really designed for the occasional recreational boater with a small craft. Higher powered and higher valued
boats benefit by having their own policy. The coverage’s are designed specifically for the boat owner with
broader coverage’s and more options available. In addition, should you have to file a claim, it would be
separate from your home policy and not affect your homeowner’s insurance rates.
Any boat used for business purposes will always need a separate boat policy.
Be sure to discuss the options with your agent to find out what is best for you!
Who is Max?
Max is our office mascot and protector! He also often leads a staff member to and from the post office each
day. He loves people, but he wants you to feed him a treat before he will befriend you. Just take a doggie
treat from the basket on the counter as you enter the office. Toss Max the treat and he will be your best
How much life insurance do I need?
Everyone’s needs vary, so to assist you in determining how much coverage would give you the coverage your
family would need, we have a Life Insurance Needs Calculator on our Calculators page. Just remember: Some is
better than none! Even if you have a small budget, there is a life insurance plan available for you!
Why do you need my condominium association bylaws?
The best way for us to determine the amount of coverage you need on your condominium is to know which
condominium association you belong to and review a copy of their bylaws. Some associations insure the entire
building, so all you need to do is insure your contents and any improvements you make to the building.
However, more and more condominium associations are scaling back their own insurance coverage for cost
savings and passing that responsibility on to you. Thus, you may be responsible to insure from the studs in
or from the drywall in, or even, the entire unit. Therefore, to provide you with the coverage you need in
the event of a loss, we need to know what exactly you are required to cover. We don’t want you to come up
short in the end!
Do I need to add my teenager to my auto policy?
Yes. Once your teen is a licensed driver, it is your responsibility to contact your insurance company, by
means of your agent, and advise them of the new licensed driver in your household. The driver will be
assigned to a vehicle, so be sure to specify which vehicle he or she drives and how often. If there are less
cars than drivers, the youth will be added to one of the vehicles as an occasional driver. If there are
equal cars per driver, or more, a car will be assigned solely to the youth as the primary driver. Again, be
sure to specify which vehicle the youth drives. Remember, your insurance company is there to provide you
with insurance protection, be a proactive partner with your company.
What if I list my home on AIR BNB?
We can help! We do have companies that will allow vacation rental of your home. Give us a call!
What PIP limit should I select?
The PIP limit we recommend will always be Unlimited coverage, as this is the broadest and most comprehensive
coverage for you if you are injured in an auto accident. However, there are other options available now such
as $500,000, $250,000, $50,000 (if you are on Medicaid) and NO PIP if you are on Medicare. Before making
this decision, please review the articles on PIP coverage on our Blog page.
Why did the Auto Liability Limits go up?
When the new No Fault Law adjustments went into effect on 7/2/2020, this opened the way for additional
lawsuits due to auto accident injuries. Therefore, to help protect the public, the State of Michigan
authorized the minimum Bodily Injury limits to be increased from $20,000/40,000 to $50,000/$100,000.
Additionally, if someone does not complete their Bodily Injury choice form, the default limit will be
$250,000/$500,000, per the new statute.
Devette & Ford recommends $500,000/$500,000 for bodily injury liability and carrying a $1,000,000 umbrella,
to protect your assets.