CAR INSURANCE BY STATE

Michigan drivers pay some of the highest rates in the country for car insurance. In fact, in most years, Michigan occupies the #1 or #2 spot on the list of the most expensive states for car insurance. Drivers in Michigan pay 70% more for car insurance than the United States average.

Fortunately, there’s some good news: it doesn’t have to be that way. There are cheap car insurance options available for drivers in Michigan, including certain companies that are known for their particularly affordable car insurance quotes.

We’ve helped thousands of drivers in Michigan get car insurance quotes. Our analysis has determined that MetLife, Hastings Mutual, Chubb, Pioneer State Mutual, MEEMIC, and Auto Owners are some of the cheapest car insurance companies serving the state. However, quotes will vary widely based on your unique situation.

michigan auto insurance

Drivers in Detroit Pay More for Car Insurance

Across America, there’s one indisputable trend for car insurance prices: drivers in cities tend to pay more for car insurance than drivers in rural areas. This lesson holds true in Michigan, where drivers in Detroit and Grand Rapids will typically pay more than drivers in Ann Arbor, Lansing, and Kalamazoo, among other smaller cities. If you’re in the Detroit metropolitan area or Grand Rapids, you’re going to pay more for car insurance than a driver in a rural area.

Car insurance companies calculate prices based more than just your driving record and credit score. Car insurance companies in Michigan also look at your ZIP code. Certain ZIP codes have higher crime rates than others. Your ZIP code might have high rates of vehicle theft, for example. If you park your car in this ZIP code overnight, then you’re more likely to make a claim than someone who parks his car in a locked garage in a safer neighborhood.

Car Insurance for Teen Drivers in Michigan

Adding a teen driver to your Michigan car insurance can be very expensive. In fact, some drivers will see their premiums double after adding a teen driver.

Fortunately, you don’t need to change your car insurance policy until after your teen driver gets his or her provisional license. When your teenage child has a learner’s permit, he or she can use the family vehicle without changing the insurance requirements. Once the driver gets a full license, however, you’ll need to change your auto insurance policy.

Michigan’s graduated licensing program for teen drivers is unique from other states. Drivers will first need to do their “Segment 1”, which involves 24 hours of classroom instruction, 6 hours of behind the wheel instruction, and 4 hours of observation time. Teen drivers must be at least 14 years, 8 months old in order to take Segment 1. Once Segment 1 is completed, the teen driver can apply for a State of Michigan Learner License, then move on to Segment 2, Level 2, and Level 3.

Talk to your insurance company to see if you need special insurance for your teen driver. Typically, drivers on a learner’s permit – like Segment 1 – will not need special Michigan car insurance for teen drivers, but needs will change as your teen driver goes through the graduated licensing program.

Insurance Requirements In Michigan

As a “No-Fault” state, Michigan mandates that every driver carries two no-fault policies:

1. Personal Injury Protection (PIP) – Michigan’s version of this standard auto insurance rider requires enough coverage for all medical expenses you may incur PLUS three years of compensation for your lost pay or services. As of Oct. 1, 2007 the maximum amount paid for lost income or death is $4,713 a month for up to three years. As you may imagine, the numbers could add up! You may be able to receive a reduced premium if you show that you have a good health insurance policy, or by asking for a deductible on your premium.

2. Property Protection Insurance (PPI) – This part pays up to one million dollars for damage to property within the state Michigan.

In addition to the above, a classic liability policy of 20/40/10 (see the chart below) is mandatory in order to protect yourself in the event that you are sued. Generally, “No-Fault” states are this way to reduce the number of people being sued. But in Michigan, the mandatory liability policy is to help out in the event of an out-of-state accident, or an in-state accident in which serious bodily injury or death occurs.

Options for Michigan auto insurance policy holders include collision, comprehensive, uninsured and under-insured bodily injury coverage.

Coverage Type Required? Minimum Coverage Amount Required
Bodily Injury Liability Yes $20,000 per person
$40,000 per accident
Property Damage Liability Yes $10,000
Uninsured Motorist Bodily Injury No
Underinsured Motorist Bodily Injury No
Personal Injury Yes

Auto Insurance Requirements for Leased Vehicles in Michigan (MI)

Most leasing companies in the Michigan typically require drivers to maintain insurance coverage which exceeds the minimums set by Michigan law. This is to protect you financially, as well as your leasing company, should they be held partly responsible. Most leasing companies will recommend the following amounts of insurance coverage:

  • Bodily injury liability coverage: $100,000 per person/$300,000 per accident
  • Property damage liability coverage: $50,000
  • Comprehensive and collision coverage: $500 maximum deductible

Insurance Agents By City/Town In Michigan

State Insurance Contacts

Michigan Department of State 
Lansing, MI 48918
www.michigan.gov/sos
Michigan Office of Financial & Insurance Services
PO Box 30220
Lansing, MI 48909
www.michigan.gov/lara