Car Insurance Rates in Michigan

Michigan has one of the most expensive automobile insurance rates in the country for both state required minimum and full coverage. Furthermore, the state has one of the highest ratios of uninsured motorists at over 25%. Getting in your car and hitting the roads comes with heightened worries in the Great Lake State as the risks of being hit by a driver with no insurance is pretty real. Considering it is the car capital of the world, it is no surprise that automobile ownership is high in MI. In any case, shopping around to find the cheapest car insurance may be the solution many vehicle owners need here.

Michigan Minimum Liability Requirements

It is one of the few no-fault auto insurance states in America. Here are the minimum Requirements;

Collection of Pictures from Michigan

PPI is a mandatory coverage specific to Michigan. It provides protection for damages to third party buildings, fences, poles, other objects and properly parked cars (immobile property). PPI does not pay for any other damage to cars and only applies to other people’s property.

Personal Injury Protection (PIP) pays for your and family’s medical expenses no matter who is at fault. There are several options in terms of PIP and you are advised to check them here as they changed recently. Here, each party’s PIP pays for their own injuries (no-fault) and therefore Bodily Injury Liability isn’t normally triggered. You can check updates and changes to the insurance laws on state website.

Car insurance companies aren’t allowed to use credit score, gender, marital status, homeownership, occupation, educational level and zip code in their premium calculations in Michigan.

If you have moved here recently you would need to familiarize yourself with minimum requirements. All companies will tell you what you must buy or include the enforced basic limits automatically. However, you would want to know what you are buying and how the claims are handled. If you need explanations about its workings you may need to contact a broker as there may be several terms newcomers might not have heard before.

Vehicle Insurance Costs in Michigan

The average premiums for state required minimum coverage is $1,104, which is $482 higher than the US average. Full coverage car insurance costs $2,691 on average, which is 34% higher than the country average. The state has one of the most expensive premiums in the country.

Although both policy options are relatively expensive, the premium gap between minimum and full coverage is actually one of the narrowest in the country. So, motorists may want to get a few quotes for both types of car insurance before making a selection. If you can afford it, full coverage offers much better protection since it includes physical damages coverage for your own automobile.

The Most Affordable Auto Insurers in Michigan

Premiums are much higher in this state so knowing who offers the best rates here can be very helpful. The companies below are the most competitive in MI so you should start with these companies when you are comparison shopping. It may be a cliche but getting multiple car insurance quotes and comparing can save you money. When the premiums are high, you have a higher chance of saving several hundred dollars by shopping around.

  1. Hastings Mutual
  2. Chubb
  3. Nationwide

Vehicle Insurance in Detroit, MI

It is the largest city by far. Detroit is one of the cities with the most expensive rates in the US and drivers here pay about 70% more than the state average. The other pricey cities are Dearborn and Flint. You can find a few tips on how to reduce city premiums to help you in places like Detroit.

If you are struggling to get affordable car insurance premiums, you should contact an independent agent to guide you through the process and check prices for you. Also, auto insurance laws have changed in Michigan recently that you may need to go over your options with an agent to make sense of everything and figure out what is the best option for you.