Best Auto Insurance in Michigan

Every state requires you to have auto insurance for any vehicle that you own. Unfortunately, Michigan has the second-highest uninsured rate in the country. The national average for uninsured drivers is 13%, with Michigan at 25.5%.

That’s a quarter of the state’s drivers! This could be because the state has one of the highest insurance costs as well. However, in 2020, Michigan made some changes to its insurance requirements to reduce the costs for its citizens. 

To find the best auto insurance in Michigan, you’ll need to compare multiple companies. This is especially important here since the state also has an extensive cost range. Before you start looking around, you should be familiar with some of the state’s laws.

Table of Contents

Michigan’s Insurance Requirements
Personal Injury Protection (PIP)
Property Protection Insurance (PPI)
“No-Fault” Law
Average Cost of Auto Insurance in Michigan
Factors that Affect Insurance Premiums in Michigan
Car Insurance Rates for Different Cities
High-Risk Drivers in Michigan
What Kind of Coverage is Best in Michigan?
How to Find the Best Auto Insurance in Michigan
FAQs about Auto Insurance in Michigan
1 What information will I need to provide for car insurance?
2 What proof of insurance will I need to register my car at the MVD in Michigan?
3 What are the penalties for driving without insurance in Michigan?
4 Is Michigan a No-Fault state for car insurance?
5 Do I need uninsured motorist insurance in Michigan?

Michigan’s Insurance Requirements

Michigan’s insurance requirements are different from most other states. Here’s a quick rundown. 

Personal Injury Protection (PIP)

Michigan requires drivers to have personal injury protection to cover any medical expenses. There is no maximum limit, and this policy also covers lost wages for up to three years. 

However, the new law has changed this slightly. If the driver has health insurance, they may not need to have PIP. If you choose to carry PIP for medical coverage, you can now select the cost limit. 

Property Protection Insurance (PPI)

Drivers in Michigan are also required to carry property protection as part of their auto insurance policy. This must include up to $1 million in damages that your vehicle caused. 

“No-Fault” Law

Michigan is a “no-fault” state, which protects drivers from being sued after a car accident. However, there are some circumstances where this doesn’t apply.

These are:

  • You’re responsible for an accident that caused a severe injury or death.
  • You’re involved in an accident with a non-resident riding in a vehicle registered in another state.
  • You are a Michigan resident involved in a crash in another state.

In case of these incidents, Michigan drivers must carry Bodily Injury and Property Damage coverage. 

The minimums are:

  • Up to $20,000 for a person hurt or killed in a crash
  • Up to $40,000 per crash for multiple people injured or killed
  • Up to $10,000 for property damage in another state

Average Cost of Auto Insurance in Michigan

As mentioned previously, Michigan auto insurance costs are considerably higher than the average in the United States. Many factors affect these rates, and the state seems to have a broader range of prices than others.

The average rate is $2,130 for a full coverage policy. This is about $600 more than the national average of $1,555. Neighboring states such as Indiana and Ohio pay about half that amount on average. 

Factors that Affect Insurance Premiums in Michigan

As mentioned above, many factors go into the cost of your insurance premiums. Fortunately, Michigan’s new law prohibits insurance companies from using gender, marital status, occupation, and other personal information when determining your rates. 

However, they still charge an average of 257% more for 16-year-olds than 55-year-olds. 

Your driving record is the most significant determining factor in your car insurance rates in Michigan. 

You’ll pay an extra:

  •  5% for a not-at-fault accident 
  • 32% for a red-light infraction
  • 48% for an at-fault accident
  • 59% for a speeding ticket 
  • 75% for having an open alcoholic container in your car
  • 137% for a suspended license
  • 183% for reckless driving
  • 186% for a DUI

Of course, whether you choose minimum coverage or full coverage plays a role, costing 101% for full coverage on average. 

Car Insurance Rates for Different Cities

Population density, cost of medical care, car repair, and more can change the insurance rates for different cities within a state. Michigan has a significant difference in insurance costs depending on where you live. 

Let’s take a quick look at the average premium in different cities throughout the state:

  • Ann Arbor $1,841
  • Dearborn $4,405
  • Detroit $5,452
  • Flint $2,732
  • Grand Rapids $1,821
  • Lansing $1,992
  • Livonia $2,393
  • Sterling Heights $2,821
  • Troy $2,299
  • Warren $3,224

As you can see, Detroit is a bit of an outlier, averaging almost $1,000 more than the next highest city. On the other end, Grand Rapids has the lowest rates, which are about 15% less than the state average. 

High-Risk Drivers in Michigan

Every state has a program to help high-risk drivers get insurance when private companies turn them away. Take a look at Michigan’s assigned risk program if you can’t get insurance anywhere else. 

However, before you go that route, it’s best to check with some of the bigger insurance companies. These companies will take on high-risk drivers and are financially strong enough to handle them. 

What Kind of Coverage is Best in Michigan?

It’s always recommended to buy more than just the minimum insurance. With the “no-fault” law, you’ll be covering your own medical costs and property damage. The last thing you want is not to have enough insurance to cover it.

At least $100,000 bodily liability insurance per person and $300,000 per accident is the recommendation from most insurance professionals.

However, if you choose to have PIP or have good health insurance, this amount may not be necessary. It’s best to talk to your insurance agent and find out what they recommend.

With Michigan having a quarter of its drivers uninsured, you may want to consider adding on uninsured motorist coverage. Add-ons like collision and comprehensive insurance are also something to consider. 

How to Find the Best Auto Insurance in Michigan

The first step to finding the best auto insurance is to figure out what type of coverage you’ll need. You’ll also need to decide on a deductible amount. 

You can choose a higher deductible to bring down the cost of your premium or a lower deductible, so you don’t have to pay as much upfront when you get in an accident. An average deductible is $500. 

Once you’ve figured that out, you’ll want to compare a few different companies. Make sure that you’re comparing the same type of plan and deductible, so you get an accurate comparison. 

Here at QuotePurple, we’ll do the work for you. We’ll show you coverage from the best carriers to help you find the most affordable price. 

FAQs about Auto Insurance in Michigan

1. What information will I need to provide for car insurance?

All insurance companies require specific information to sign you up for your plan. These can vary slightly, but there are a few basics that most will need. 

You’ll also likely need to provide:

  • Driver’s license
  • Social Security number
  • Your bank information
  • Make, Model, Year, and VIN of your car
  • Safety and anti-theft features of your car
  • Estimate of how many miles you’ll drive annually

Once you’ve signed up, look out for your insurance cards in the mail!

2. What proof of insurance will I need to register my car at the MVD in Michigan?

You’ll need to show proof of insurance when you register your car with the MVD. Fortunately, in Michigan, digital proof of insurance is accepted. 

When you register your car with the MVD, you’ll need to show proof of insurance. 

You can use:

  • Current insurance card (paper copy or digital)
  • A copy of your insurance policy
  • A letter from your insurance company that verifies your coverage (This must be on paper with the company letterhead.)

Even though law enforcement will accept digital proof of insurance, it may not be a bad idea to keep a paper copy in your car, too. 

3. What are the penalties for driving without insurance in Michigan?

Driving without insurance in the state of Michigan is considered a misdemeanor. Penalties include a fine of up to $500 and jail time up to one year. You may also have your license suspended for 30 days or until you provide proof of insurance. 

Uninsured drivers will also be responsible for the cost of damages and medical expenses if they get in a car accident. 

4. Is Michigan a No-Fault state for car insurance?

Michigan is a “no-fault” state. This means that every driver is responsible for their own expenses after an accident. The only exceptions to this rule are if a driver is seriously injured or killed, the accident occurs in a different state, or involves a driver from another state. 

5. Do I need uninsured motorist insurance in Michigan?

Michigan doesn’t require uninsured motorist coverage. However, insurance companies are required to offer it, and it might not be a bad idea since the state has a high rate of uninsured drivers. 

Figuring out your car insurance premium can be difficult and time-consuming. To be sure you get the right rates and the best rates, call QuotePurple at (877) 200-6113 to speak with a car insurance specialist and get a quote today!

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