Michigan has the most expensive automobile insurance rates in the country. Furthermore, the sate has one of the highest numbers of motorists with no coverage at 19%. Getting on your car and hitting the roads comes with heightened worries in the Great Lake State as the risks of being hit by one of those drivers is pretty real. Perhaps these risks are the reason for the excessive prices. Or is it another way around and they are the reason why so many people cannot afford to buy at least a liability policy? In any case, finding the cheapest car insurance may be the solution many vehicle owners need here.
One positive number among these figures is the high auto ownership. It is a wonder if it is a positive figure. Generally, lack of dependable public transport is the reason for increased number of private vehicles but we should remember that this is the home of automobiles. People are forced to have private transport when public services fail them. Also, living costs are not too bad either. When the general prices are cheaper expensive premiums stick out like a sore thumb and look to be even more exorbitant in comparison with the rest of the household outgoings. So, you should try harder to find best prices, as it is likely that your efforts will be rewarded.
Michigan Minimum Liability Requirements
It is one of the few no-fault auto insurance states in America. Here are the minimum Requirements;
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. The no-fault system provides you and family with unlimited lifetime coverage for medical bills resulting from a vehicle accident, regardless of fault. Here, each party’s PIP pays for own injuries (no-fault) and therefore Bodily Injury Liability isn’t normally triggered.
You can read Brief Explanation of No-Fault Automobile Insurance at the official website. Although it says brief on the title this document explain a bit about the requirements and terms.
If you have moved here recently you would need to familiarize 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 new comers might not have heard before.
How Costly Is Vehicle Insurance in Michigan?
The state’s no-fault requirements are said to be the main reason for high premiums. Its unique laws provide unlimited lifetime coverage for medical bills.
Motorists have to buy Personal Injury Protection (PIP) as part of the minimum requirements, like any other no-fault state. For example, the required PIP is $10,000 in Florida. However, the laws mandate that auto insurers cover up to $545,000 in medical claims. The non-profit Michigan Catastrophic Claim Association (MCCA) covers the rest of its unlimited personal injury claims and another $160 per vehicle (in 2016) charged to every policyholder through their carriers for this service, on top of already costly premiums.
“Auto consumers pay more than most states for car insurance due to the high medical mandate. It is the only one in the country that requires auto consumers to purchase unlimited, lifetime medical benefits” explains Lori Conarton.
Another reason for the soaring rates is that high costs drive nearly 20% of drivers out of the market, as they cannot afford the premiums. This in turn adds more load onto policyholders since they have to shoulder the losses suffered because of them. 80% of motorists have to share 100% of the risks.
Average premium expenditure in MI is $1,131, which is $290 higher than the US figure of $841. This is the median policy cost, which counts all types regardless of it being liability only, full or somewhere in between. If a good driver with no claim or traffic ticket wants to buy full coverage he/she needs to pay estimated $2,738, which is the most expensive in the country and more than twice higher than the US average of $1,325.
It simply is exorbitant. The gap between the average premium spending and full coverage estimate tells us that large numbers of policyholders have basic liability only. And who can blame them? This is definitely not an ideal situation considering the residents aren’t rich (in comparison to other regions) to pay for damages to their cars out of pocket. They need proper protection as much as anyone else in the country.
The Most Affordable Auto Insurance Companies in Michigan
We discussed how high the rates are throughout the page. The companies below are on average 5 times cheaper than the most excessive quote in the state for liability only. There is no excuse not to look for good prices and save some money since you now know where to get it.
- Hastings Mutual, $551
- Chubb, $762
- Nationwide, $893
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 $1,000 more than the state average, which is over 70% more. The other pricey cities are Dearborn and Flint. Here you can find a few tips on how to reduce city premiums to help you in places like Detroit.
It is really important to choose a company that deserves your money. Don’t forget that they have to work for their policyholders like any other business offering products and services. It is up to you to decide who gets your money. It would be a shame to spend a lot and still get bad customer service or claim experience.
You can read reviews like above, find out about the claim payment record of a particular carrier by checking commissioner’s page and searching on the Internet. There is no doubt that there are a few affordable companies here and you should embrace the challenge to find them. You will be well rewarded for a few minutes you spend for it.