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%. Navigating the roads in the Great Lake State amplifies concerns due to the tangible risk of collisions involving uninsured drivers. Given its status as the epicenter of the automotive industry, it’s unsurprising 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

Michigan is a no-fault auto insurance state and 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.

Newcomers to the state need to understand the minimum automobile insurance requirements. Companies provide information about necessary purchases and limits, but understanding the coverage and claims process is important. If unfamiliar terms arise, consulting an agent, who can explain these concepts, might be helpful.

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. Auto-Owners
  2. Progressive
  3. Chubb
  4. Secura
  5. Travelers

Vehicle Insurance in Detroit, MI

It is the largest city by far. Detroit is one of the cities with the most expensive auto insurance rates in the US and drivers here pay over 2.5 times higher premiums than the state average. The other pricey cities are Dearborn and Flint. Where you live in Michigan really matters in terms of car insurance because there are wide fluctuations in costs between cities.

Noteworthy Michigan Vehicle Insurance and Driving Facts

  1. Uninsured motorist bodily injury coverage is offered in Michigan at $50,000 per person and $100,000 per accident. Motorists can decline this coverage in writing.
  2. Keeping a clean driving record is extra important in states where vehicle insurance rates are expensive. A speeding ticket increases premiums on average 49% and an at fault accident 50% in MI, according to Forbes.
  3. Cars are a large part of the economy, culture and source of income in the home of Ford and General Motors and North American Auto Show.
  4. Insurance fraud in Michigan is considered a felony, carrying a potential sentence of up to four years in prison and a maximum fine of $50,000. Additionally, individuals found guilty may be required to provide restitution, cover court expenses, and settle lawyer’s charges.
  5. Also, operating a vehicle without insurance in MI is classified as a misdemeanor, carrying potential penalties such as a fine reaching up to $500, a jail term of up to one year, or a combination of both. Additionally, drivers could face a 30-day license suspension or suspension until they can demonstrate proof of insurance. Moreover, drivers will be obliged to submit a license reinstatement fee amounting to $125.
  6. Ford F-Series, Chevy Equinox, Ram Trucks, Ford Escape and Chevrolet Silverado are the most popular vehicles in Michigan.
  7. According to the Economist, Detroit is the most expensive city in the US for car insurance.

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.