Michigan is one of the few U.S. states with a no-fault auto insurance law. This means every driver is required to file a claim with their own insurance company after an accident, regardless of who was at fault. In states with no-fault laws, all drivers are required to purchase personal injury protection (PIP), as part of their auto insurance policies. As the policyholder, you waive your right to sue someone in an accident. However, there are exceptions to the no-fault rule, such as severe injury and death.
All no-fault insurance policies issued in Michigan have three parts:
- Personal Injury Protection (PIP.)
- Property Protection (PPI.)
- Residual Body Injury and Property Damage Liability (BI/PD.)
Michigan is unique in that PIP coverage includes unlimited benefits for medical care and rehabilitation services. So if you were grievously injured in an accident and required a lifetime of treatment, your insurance would pay for it.
It also includes up to three years of wage benefits if you are unable to work or perish in an accident. A daily stipend covers the costs for jobs you would be unable to complete, such as yard work or cleaning. This is one of the primary reasons why Michigan car insurance rates are some of the most expensive in the nation.
PPI covers up to $1 million in property damage done in the state. This includes damage you inflict on parked cars in some circumstances.
BI/PD covers legal fees and damages (up to the policy limit) if you are sued or have an accident outside the state. The state’s minimum requirements are as follows, also known as 20/40/10:
- $20,000 per person hurt or killed in an accident.
- $40,000 for each accident, if several people are hurt or killed.
- $10,000 for property damage done in another state.
Car insurance rates in Michigan vary by zip code, you can expect to pay on average around $180 per month or $2,160 a year for a full coverage auto insurance. These prices will vary depending on a few factors and there are ways to save money which can be read about below.
There are a few ways you can save on your overall car insurance costs in Michigan. It is best to compare multiple quotes to make sure you are getting the best deals, you can also pay in full to receive a discount, or bundle your auto insurance with home insurance to lower costs. Your insurance specialist will be able to help you determine if there are any other discounts available in your area as well.
How Much Does Car Insurance Cost in Michigan?
The average cost of car insurance in Michigan varies between drivers. Here is the breakdown of the amount you can expect to pay on car insurance costs by county for vehicle type below for a minimum state policy of the average driver:
| Auto Insurance Costs by County: | Sedan: | SUV: | Coupe: | Truck: | Hybrid: |
|---|---|---|---|---|---|
| Alcona | $2,117 | $1,637 | $1,971 | $1,499 | $1,991 |
| Alger | $2,083 | $1,609 | $1,946 | $1,476 | $1,974 |
| Allegan | $2,041 | $1,504 | $1,817 | $1,517 | $2,017 |
| Alpena | $2,110 | $1,573 | $1,895 | $1,493 | $1,987 |
| Antrim | $2,132 | $1,576 | $1,905 | $1,498 | $2,012 |
| Arenac | $2,173 | $1,616 | $1,942 | $1,666 | $2,175 |
| Baraga | $2,182 | $1,635 | $1,971 | $1,545 | $2,069 |
| Barry | $2,315 | $1,704 | $2,072 | $1,714 | $2,278 |
| Bay | $1,982 | $1,463 | $1,754 | $1,418 | $1,874 |
| Benzie | $2,106 | $1,550 | $1,877 | $1,541 | $2,064 |
Finding Auto Insurance Resources in Michigan
The Michigan Department of State is a great resource if you need information about auto insurance, driving laws, and licensing. Michigan DMV offices can assist you with voter registration, licensing, registering vehicles, and more.
If you have trouble obtaining insurance, you can ask an agent to help you apply for the Michigan Automobile Insurance Placement Facility (MAIPF). This joint underwriting agency obtains policies for people who can’t get insurance otherwise.
The Michigan Department of Insurance and Financial Services (DIFS) also deals with complaints of suspicious activity by auto insurance agencies. Contact the DIFS Office of Consumer Services if you suspect that an agency isn’t being truthful about refusing to cover you. The Office also assists with disputes over claims and settlements.
Tips for Understanding Michigan Car Insurance
Michigan law requires all insurance companies to cover eligible residents. To be eligible, you must have a valid Michigan driver’s license and a registered car in the state.
In a few circumstances, insurance companies can refuse to issue a policy. They often deny coverage if you have an auto insurance fraud conviction within the past five years or a felony involving a vehicle. This includes driving under the influence. You will want to find the best auto insurance prices and coverage for your needs.
Although Michigan requires minimum coverage, you can opt for higher BI/PD limits. Insurance companies can also offer discounts to save you some money. These include the following:
- Airbags.
- Anti-lock brakes.
- Anti-theft measures.
- Good credit.
- Good student.
- Multiple vehicles.
- Multiple policies.
- No claims or tickets.
Moving to Michigan: Important Information
If you’re moving to Michigan, you need to obtain a driver’s license and auto insurance. You’ll also need to transfer the title and register your vehicle. To register your vehicle, you must provide proof of insurance in the state.
To obtain a Michigan driver’s license with a valid out-of-state license, you need to present the following at the DMV office:
- Social Security Number or proof of ineligibility.
- Proof of citizenship or legal presence.
- Proof of Michigan residency.
- Proof of identity.
In addition, you must pass a vision test and meet physical standards. You’ll have your photo taken at the DMV and pay a fee for a temporary license. This temporary license is valid until your official license arrives. The state of Michigan requires new residents to transfer their driver’s license and obtain current state registration. It’s best to complete these processes as soon as possible after moving to avoid any complications with local law enforcement or municipal officials.
Understanding Driving Laws in Michigan
Michigan’s Driver Responsibility Law encourages you and other drivers to be mindful on the road. Certain infractions earn a number of points after conviction. When you have too many points on your record, you face fines. Other infractions, such as drunken driving or reckless driving, automatically incur fines upon your conviction.
Michigan has no statewide ban on using your cell phone while driving. However, you may receive tickets or fines if using your cell phone leads you to violate traffic laws. Local municipalities may have their own laws about phone use, typically announced by signage. The state also has no ban on radar detectors.
Teenage Driving Laws in Michigan
After completing the first segment of a driver’s education, a teenager qualifies for a Level 1 Learner’s License at the age of 14 years and 9 months. At the age of 16, after driving for six months with 50 supervised hours (10 of which are a night), they can get a Level 2 Intermediate License. This license restricts the teen to drive between 5 am and 10 pm and with no more than one passenger who is under the age of 21 (except for family members). At the age of 17, they can get a Level 3 Full License with all prior restrictions lifted.
A licensed teen driver must be included and covered by the family’s car insurance policy. Since inexperienced drivers present a higher risk, young drivers pay much higher insurance rates, especially in Michigan.
Frequently Asked Questions About Michigan Auto Insurance
1. What can happen if you get into an accident while uninsured?
Driving your car or letting someone else drive your car without insurance is a misdemeanor. Getting into an accident without no-fault insurance opens you up to a lawsuit. You become liable for your medical expenses. You may also be fined and/or face jail time.
2. What are some suspicious reasons for denying insurance coverage?
Contact the DIFS Office of Consumer Services if an agency says it does not write policies in an area. Also, watch out for any statements such as “there is no agent in that area” or that the agency is not accepting new customers. An insurance company also can’t require you to purchase a homeowners insurance policy.
3. What are some valid reasons for denying insurance coverage?
A history of non-payment on your insurance premium in the past two years is grounds for refusing to cover you. A company may also say no if your driving record is bad enough that you exceed the number of eligibility points allowed by a company. Eligibility points are not the same as the points used by the Driver Responsibility program.
How to Get Great Rates on Michigan Auto Insurance
Finding an auto insurance quote can seem overwhelming – but insuranceQuotes.com helps you find the best car insurance policy at the best price. Every year, we match 15 million consumers to the nation’s biggest auto insurance companies, including State Farm, Allstate and Liberty Mutual.
insuranceQuotes.com connects you with local and national insurance companies that give you free car insurance estimates by phone or email within minutes. By comparing multiple quotes, you can be sure that you’re getting the best price for car insurance, and may find potential auto insurance discounts. Depending on your personal situation and driving history, there may be other ways to save on car insurance.
insuranceQuotes.com Auto Rate Methodology
Rates are based on one vehicle and one driver who has state minimum coverage with $500 deductibles. The hypothetical driver is 35 years old, female or male, employed, a college graduate, and has good credit. She has no traffic violations, claims, or lapse in coverage. The vehicle is assumed to be a sedan that is garaged on premises, used primarily for commuting, and driven 16,000 miles per year. Rates include commonly available carrier discounts and are estimates and not guaranteed.
