Car Insurance in Michigan

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There are a few things you’ll want to know about car insurance in Michigan before hitting the historic roads in the home of the automotive industry. Whether you’re cruising down Woodward in Detroit, taking a road trip “up north,” or seeing the many sights the Great Lakes State has to offer, you’ll want to make sure you meet all the car insurance requirements in Michigan. Let’s talk all things car insurance in the mitten.

What You Need to Know About Car Insurance in Michigan

Before purchasing a car insurance policy in the Great Lakes State, you’ll want to be familiar with a few facets of the state law, such as the required PIP coverage in Michigan. The state mandates that all drivers must have car insurance, so you’ll want to ensure you have the legally necessary coverage. 

It’s always a good idea to research before getting an auto insurance policy, whether you’re getting car insurance for the first time, switching insurers, or shopping around for a better policy. When conducting research, you may notice that the Great Lakes State has high insurance rates, so your research may also focus on getting the best coverage and cheapest rate in the state.

Here at Clovered, we’re here to help you understand exactly what you need from your auto insurance coverage while still getting the most affordable car insurance in Michigan.

Is Auto Insurance Required in Michigan?

In Michigan, you’re required by law to have at least $50,000 of bodily injury liability per person per accident, $100,000 total bodily injury liability per accident, $10,000 of property damage liability per accident (shown as 50/100/10 on your policy), $1 million of property protection insurance, or PPI, and at least $250,000 of personal injury protection, or PIP.

It has many more auto insurance requirements than other states, which means you may find premiums more expensive than in many other states.

The minimums listed above equate to the amount your insurer will help you cover costs for damages to property or medical expenses should you be involved in an accident. However, you must reach your deductible before your insurer helps cover those costs.

For example, suppose you incur $40,000 of expenses covered by your bodily injury liability, and your deductible is $2,000. In that case, you’ll have to pay $2,000 from your pocket before receiving the remaining $38,000 from your insurer.

Failure to have these required coverages on your auto insurance policy can result in fines, loss of license, and jail time, not to mention the costs incurred from an accident that will have to come out of your pocket.

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What Is the Minimum Auto Insurance Coverage in Michigan?

The minimum auto insurance coverage in Michigan is typically 50/100/10 for bodily injury liability and property damage liability, about $250,000 in PIP, and up to $1 million in PPI. The average auto insurance in Michigan is a full coverage policy due to the state’s expansive car insurance laws.

No-Fault Insurance in Michigan

The Michigan no-fault law requires all drivers to have some form of personal injury protection (PIP) on their car insurance policy and property protection insurance (PPI). Michiganders are also required to carry the state-mandated amounts of liability coverage, but PIP and PPI are directly tied to the state’s no-fault law.

In states that don’t have no-fault laws, in the event of an accident, the at-fault party would pay for the repairs or medical expenses for the victim(s) of the accident. In a no-fault state, drivers rely on their insurance policies to receive financial aid to pay for their damages or medical expenses caused by an accident, regardless of who caused it. 

States with no-fault laws, like Michigan, have a higher-than-average amount of uninsured or underinsured drivers. It also has some of the most uninsured or underinsured motorists in the country, as over 25% of drivers in the state don’t have adequate coverage on their insurance policy, if they have one at all. As with many other no-fault states, Michigan instated no-fault laws to protect drivers who abide by the minimum auto insurance requirements instead of forcing them to rely on other drivers on the road.

What Is PIP Insurance in Michigan?

In Michigan, PIP, or personal injury protection, is a legally mandated coverage type that kicks in to help the policyholder cover medical expenses they incur from an accident. PIP is a no-fault coverage, meaning it’ll kick in regardless of who is at fault in the accident. 

If two people with Michigan car insurance were to get into an accident, their PIP and PPI would kick in first to help initially cover the costs incurred by the accident. Then, you’ll determine who was at fault for the accident. If the at-fault party has adequate coverage, your insurer will work with the at-fault party’s insurer to have them cover the cost of damages or other expenses caused by the accident.

The no-fault law causes the state’s auto insurance rates to be higher than in many states, especially those without no-fault laws. Since the no-fault law requires drivers to carry PIP, the most expensive car insurance coverage, along with several other coverages, auto insurance rates in Michigan are much higher than in most other states.

Is PIP Required in Michigan?

PIP is one of the car insurance requirements in Michigan. PIP is mandatory for all drivers on the road, but as of July 2020, drivers can opt for a range of PIP limits. The state law used to require unlimited PIP, but now many drivers can opt for a limit of $250,000 of PIP coverage.

The lowest limit available to all drivers is $250,000. Drivers enrolled in Medicaid or Medicare may be eligible for lower limits. 

What Is Full Coverage Insurance in Michigan?

A full coverage policy in Michigan is a car insurance policy that exceeds the legally required minimum coverage requirements. A typical car insurance policy would be a policy that has liability coverage and several additional coverages. In accordance with the law, all drivers are required to have a minimum amount of liability coverage, as well as PPI and PIP. 

A full coverage policy in Michigan will have liability coverage, PPI, PIP, and one or more additional coverages, like comprehensive, collision, medical payments, and uninsured/underinsured motorist coverages.

Property Damage Liability in Michigan 

All drivers in the Great Lakes State must have at least $10,000 of property damage liability per accident. While Michigan is a no-fault state, there are exceptions. If you’re deemed at fault in an accident, your property damage liability will kick in to help you cover the cost of damages to the other person’s vehicle or property.

Bodily Injury Liability in Michigan

All drivers in Michigan must have at least $50,000 of bodily injury liability per person per accident and $100,000 of total bodily injury liability per accident. Bodily injury liability coverage is an at-fault coverage that’ll kick in to help you cover the cost of the other person’s medical expenses in an accident where you’re deemed at fault.

Personal Injury Protection in Michigan 

Michiganders are legally required to have about $250,000 in personal injury protection (PIP). This coverage is required by the state’s no-fault law and kicks in to help the policyholder pay for any medical expenses they may incur due to a car accident.

The type of health insurance you have may impact your required PIP amount. Those with private health insurance typically carry, at minimum, $250,000 in PIP. Those who have federally funded health insurance may be allowed to have a lower amount of PIP coverage.

Comprehensive Coverage in Michigan

Comprehensive coverage is optional for most drivers in Michigan, which can be added to a full coverage policy to help pay for repairs caused by an event when the car isn’t in use. Each insurance policy is different, but many cover damages caused by theft, vandalism, or natural disasters. While it’s an optional coverage, it’s always a good idea to protect your property against the unexpected.

Collision Coverage in Michigan 

Collision coverage is optional for most drivers in the state. It can be added to a full coverage policy to pay for damages to your vehicle if you’re deemed at fault in an accident. If you lease or finance your vehicle, you may be required to have this coverage on your auto insurance policy. If you own your vehicle, this coverage type is optional in Michigan.

Medical Payments Coverage in Michigan

Medical payments coverage, or MedPay, can be added to a full coverage policy to help pay for the policyholder’s medical expenses once their PIP coverage runs out. MedPay is basically a backup plan for PIP coverage. Many drivers in Michigan don’t have MedPay because the minimum PIP limit is so high that a backup plan is unnecessary.

Uninsured Motorist Coverage in Michigan

Uninsured motorist coverage is an optional coverage that can be added to your full coverage policy to help pay for damages to your vehicle or your medical expenses if the at-fault party in an accident doesn’t have any car insurance. 

It’s a good idea to have some form of uninsured motorist coverage anywhere, but especially in Michigan, given the high number of uninsured drivers in the state.

Underinsured Motorist Coverage in Michigan

Underinsured motorist coverage works similarly to uninsured motorist coverage in that it helps cover the policyholder’s expenses if the at-fault party in an accident doesn’t have sufficient coverage.

While it isn’t required, adding this coverage to your full auto insurance policy is a good idea. Due to the high number of uninsured and underinsured drivers in the state, it’s better to be safe than sorry.

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What Is the Best Michigan Auto Insurance?

The best car insurance in Michigan is a policy with full coverage at a low cost. The best auto insurance policy can change from person to person, depending on what you value most. If you value having a broad range of coverages, you may have to spend more than the average cost of insurance in Michigan. While it may be expensive, considering the high number of drivers in the state without adequate car insurance, it’s a good idea to err on the side of safety.

The best auto insurance in Michigan is a policy that meets all the legally required minimums. Your policy must meet the minimum liability limits of 50/100/10 for bodily injury liability and property damage liability, some form of PIP, and $1 million of PPI. While carrying the legal minimum amount of car insurance is the best option for those who value cost over coverage, it may not be the best option.

Ensuring you’re fully protected in a car accident is crucial to driving safely in the mitten. A full coverage policy is the best way to enjoy Michigan’s roads safely.

List of the Best Auto Insurance Companies in Michigan

The best car insurance companies in Michigan have a great presence in the state and offer various coverage options and discounts. Some of the top car insurance companies in the mitten are:

  • State Farm 
  • Progressive
  • Geico

These insurers offer a plethora of coverage types that’ll cover you for a broad range of events and offer several options for discounts on your policy.

The best insurance in Michigan will likely be quite expensive, considering the legal minimums are high and the general cost of premiums is much higher than the national average. Selecting an insurer that offers several discounts may be the difference between adequate and inadequate coverage for many drivers in the state. Many auto insurers offer discounts for policyholders who bundle several types of insurance, like auto and homeowners insurance, or those who add multiple cars to their auto insurance policy.

How Much Does Car Insurance Cost in Michigan?

In Michigan, auto insurance costs anywhere from $1,880 to $2,190 annually, depending on what type of coverage you have on your policy. Premiums can be determined by factors about the driver, like age, gender, location, the type of car you drive, and several other factors.

Insurers in the state are prohibited from using gender, ZIP codes, credit scores, and several other personal details about you when determining your premiums. However, insurers in the state are allowed to use age to determine premiums. If you’re young or haven’t been driving very long, your premiums may be higher than average, even if you opt for a more minimal policy.

If you opt for the minimum coverage, you’ll pay about $1,880, depending on some factors about you. While $1,880 is much higher than the minimum in many states, Michiganders pay more in car insurance premiums because of the mandatory PIP coverage required by law.. 

Drivers who opt for a full coverage policy with optional coverages like collision, comprehensive, or uninsured/underinsured motorist coverages will likely pay about $2,190 annually, depending on the coverages you choose to include in your policy and other factors about you as a driver.

What’s the Average Auto Insurance Cost in Michigan?

The average cost of auto insurance in Michigan is $2,190 annually or about $180 per month for the average policy. While the Great Lakes State has some of the most expensive car insurance premiums in the nation, the amount you pay in premiums can vary within the state by your ZIP code.

For example, drivers in Lansing are likely to pay less in car insurance premiums than drivers in Detroit because Lansing has a lower population density than Detroit. Insurers use population density as one of the most significant factors in determining premiums because drivers who live and frequently drive in densely populated areas are far more likely to get in an accident and file a claim than drivers who live in less populated areas.

Why Is Michigan Car Insurance So Expensive?

Car insurance in Michigan is among the most expensive in the nation due to various factors. The no-fault law causes drivers to carry PIP on their auto insurance policies, the most expensive coverage type you can have on your auto insurance policy. While many drivers in the state will carry the minimum amount of PIP, about $250,000, the minimum amount of PIP can still make your premiums higher than the national average.

The no-fault law is the most significant factor driving up the state’s insurance rates. Before 2020, all drivers were required to carry unlimited PIP on their auto insurance policies, which drove up premiums exponentially. Insurance rates in Michigan have been dropping since the laws were reformed, but since the state still requires drivers to carry a high minimum amount of PIP, the average premium will stay higher than the national average.

Finding Cheap Car Insurance in Michigan

The cheapest auto insurance in Michigan will be a policy with minimum coverage and several discounts applied. The average cost of a policy that meets the minimum amount of legally required coverage is $1,880 annually. However, you can lower your premiums by finding discounts that apply to you. Many insurers offer discounts for students who do well in school, drivers who practice safe driving habits, and even for bundling home and auto policies or multiple auto policies in one.

You may also get cheap auto insurance in Michigan if you enroll in a safe driving program. Many of the nation’s top insurers offer safe driving programs that incentivize drivers to practice safer driving habits with a discount on their premiums. 

Inarguably, the best way to get cheap Michigan car insurance is to get and compare quotes online. You never know who’ll have the cheapest rate, so it’s a good idea to check once or twice a year to ensure you get the best bang for your buck.

Getting Auto Insurance Quotes in Michigan

You’ve come to the right place if you’re looking for the cheapest Michigan auto insurance quotes. You can use our free quoting tool here at Clovered to get and compare the best car insurance rates in Michigan. If you prefer to speak to an agent, we’re always happy to chat at 833-255-4117 or agent@clovered.com.

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The editorial content on Clovered’s website is meant to be informational material and should not be considered legal advice.

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