The simple fact of the matter is that you want to get Michigan car insurance quotes because they will save you money. You can get one or more for free right now, simply by entering your Michigan zip code above. The process is fast and easy and can help you save hundreds of dollars on your coverage.
You can also learn more about auto insurance coverage in Michigan by reading our insurance information sections below. Rates, laws, companies and more are all covered.
Minimum Auto Insurance Requirements In Michigan
The land of Ford and GM has relatively unique requirements when it comes to buying auto insurance. The first thing you should know is that Michigan is one of only a few states that operates entirely on a ‘no-fault‘ insurance system.
Also, unlike other states that have simple liability requirements; Michigan requires three separate parts to any policy. They are as follows:
- Personal Injury Protection (PIP) – Pays for all medical costs that come about as a result of a vehicle accident. Also, pays up to 85% of lost income for up to 3 years (capped at $4,929 per month).
- Property Protection (PPI) – Pays for up to $1 million worth of damage to Michigan state and/or other people’s property; such as buildings, houses, fences, and other people’s properly parked vehicles. It will not pay for other damage to your car.
- Residual Bodily Injury and Property Damage Liability Insurance (BI/PD) – This most closely resembles coverage found in other states. In insurance terms it would be listed as 20/40/10 coverage; which essentially means $20,000 bodily injury liability per injured individual, $40,000 per accident, and $10,000 for property damage liability. You can also opt to get policies that are more extensive than what the law requires.
Keep in mind that these are minimums only and you are strongly advised to buy more BI and PD coverage. You are also strongly recommended to consider additional forms of auto insurance coverage available to you in Michigan. These include but are not limited to Collision coverage, Comprehensive Coverage, Uninsured Motorists Insurance and/or mini-tort coverage.
Michigan State Auto Insurance Laws
Make no mistake you are required by law to buy Michigan auto insurance. Non-coverage or lack of coverage doesn’t just endanger your health (both physical and financial) and that of your passengers; it also puts you at risk for fines and sanctions. These can include the confiscation of your driver’s license and suspension of your vehicle registration. Instead of saving money by not buying insurance, you end up paying much more by not following the law.
As mentioned above, Michigan is one of the few states that follow the ‘no fault’ policy for its car insurance system. In a nutshell, this means that any injuries you sustain if you are in a car accident will be covered by your insurance policy, regardless of who caused the accident. Because of this system, it is understandable why the state’s laws and rules regarding car insurance are very strict and extensive. You should also be aware that collision coverage does not fall within the ‘no-fault’ system.
Beyond the minimum state requirements for car insurance (see above), there are a few other important things you should know. You always want to obey the rules of the road and avoid accidents. There are a variety of penalties out there for things such as DUIs, serious traffic violations, crashes and more. All of these could result in you losing access to your vehicle.
- You are not required by law to have ‘no-fault’ insurance because you do not intend to live or drive in Michigan for 30 or more days.
- Within the past 5 years, you have been convicted of trying to defraud an insurance company, or have been denied payment of a claim over $1,000 because there is evidence of fraud on your part.
- Within the past 3 years, you have been found guilty of a felony with a motor vehicle, driving under the influence of alcohol or drugs, failing to stop at the scene of an accident, or reckless driving.
- The car you want to insure does not meet Michigan motor vehicle safety requirements.
- Within the past 2 years, your auto insurance has been canceled because of non-payment of premium. This can be overlooked if you pay your entire
premium in advance.
- The insurance you want to buy requires you to be a member of a group, club or
organization and you do not join the organization.
- Your driving record causes you to have more than the allowable number of eligibility points.
- You do not meet the requirements of a company’s underwriting rules.
Michigan Car Insurance Companies
There are many car insurance companies that sell insurance in Michigan. The Michigan Buyers’ Guide to Auto Insurance probably has the most complete list, including what discounts you can expect to get from a given company for a given action. For example, how much you’ll save by having air bags, anti-lock brakes and/or anti-theft devices on your car.
On the other hand, if you prefer dealing with more established companies you may wish to check out the Insurance Information Institute’s list of insurance companies. Here are the companies they work with:
Finally, if you have an issue with your auto insurance company that you can’t resolve through other means, you can file an insurance complaint with the Department of Licensing And Regulatory Affairs.
Average Michigan Auto Insurance Rates
The best reason to get quotes is because you want to save money on your insurance policy. Knowing the average Michigan car insurance rate may help you to see where you fall. The first place you want to look is the Car Insurance Survey created by the Michigan Department of Labor and Economic Growth – Office of Financial and Insurance Regulation. It lists sample average rates for several different situations and locations in Michigan.
Overall, auto insurance rates vary widely in Michigan, as Detroit is by some measures the most expensive city in the United States to insure a car. Moreover, Insure.com claims the state to be the most expensive with premiums of $2,451 for their hypothetical driver.
Yet when looking at true averages, the state is not even in the top 10 when it comes to cost. The Insurance Information Institute’s numbers claim the average premium paid in 2007 for Michigan drivers was $928 per year. On the other hand, CarInsurance.com claims the average quoted rate for insurance in 2011 is $1,394 (just under the US national average). Either way the only way to get the best rate is to get as many quotes as you can (see below).
Michigan Car Accident Statistics
One reason for the overall relatively low car insurance rates in Michigan is due to the fact that the state is much safer than average to drive in. In 2010, there were 937 traffic deaths and 70,501 related injuries. As terrible as these numbers sound they are actually better than the national average; 0.96 deaths per 100 million miles traveled versus 1.14 in the US overall. Even when it comes to drinking and driving, Michigan does better than average. 28% of fatalities were caused by DUIs versus 32% across the whole nation.
The only area Michigan does poorly on is car theft. It still has a slightly higher rate than the country as a whole, but it is dropping. In 1986 Michigan had 5.9% of all car thefts in the US (72,021 of 1,224,137) compared to just 3.7% in 2009 (29,647 of 794,616). A stunning drop of nearly 60% in that period versus a national drop of 35%.
Why You Should Get Michigan Car Insurance Quotes
So as we have seen, while Michigan is relatively safe for driving in terms of accidents and is improving when it comes to auto theft, it is not yet perfect. Thus, it is necessary to buy auto insurance (not to mention the fact that you are legally required to do so). It is imperative to look out for the best Michigan car insurance quotes there are, to ensure that you and your loved ones are covered while on the road.
The best way to get a good Michigan car insurance quote is to get a car insurance quote on the Internet. There are a variety of Michigan car insurance resources online, including instant Michigan auto insurance quotes you can get below. Prospective car insurance buyers like yourself, can compare all of the companies online car insurance quotes and select the best deal that fits your needs without having to leave your home.
DELEG – Office of Financial and Insurance Regulation