Driving in Michigan: Statewide Stats

When shopping, be sure to get as many quotes for cheap insurance Michigan agents can offer you. This can help save you a lot of money. Especially because Michigan’s auto insurance premiums are quite a bit higher than the national average, with an average annual rate that tops $2,000. This is partly due to the rising percentage of uninsured drivers (around 20% of Michigan drivers do not carry proper insurance), as well as higher injury costs.

Insurance Facts

Michigan residents pay the highest percentage of their household income on car insurance premiums – up to a staggering 8 percent.

Michigan is a no-fault state, meaning each driver is required to carry personal injury protection to cover injuries, regardless of which driver is at fault. Policies are required to have Michigan-specific no-fault policies; out-of-state policies are not accepted. Because of the increased personal liability, it is highly recommended that most Michigan drivers carry extra liability insurance.

The penalties for not carrying current auto insurance can be up to $200, and higher insurance rates for at least 6 months (some carriers will even deny you coverage if you can’t show a history of valid auto insurance).

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State Car Insurance Requirements

  • Michigan’s mandatory minimum coverage for personal bodily injury is $20,000.
  • Michigan’s mandatory minimum coverage for bodily injury per accident is $40,000.
  • Michigan requires a mandatory minimum of $10,000 in coverage for property damage in another state.

Did you know?

  • Although automobiles were not invented in Detroit, Michigan, the “Motor City” is known as the car capital of the world because of the city’s rich automobile manufacturing history.
  • Henry Ford built his first car in Detroit, ushering in a new method of assembly-line manufacturing.
  • In Michigan, it is illegal to sell a car on Sunday.
  • It is also illegal to paint a sparrow in order to sell it as a parakeet (at least in Harper Woods, MI it is)
  • In Kalamazoo, it is against the law to serenade your girlfriend.
  • And in Wayland, MI, anyone can keep their cow on Main street at a meager cost of 3 cents/day.

Helpful Resources

DMV website

Most motor vehicle issues are handled by Michigan’s Secretary of the State. Their website may be found here. 

Registration Information

Vehicle registrations are handled by Michigan’s Office of the Secretary of State. Their website may be found here. 

DUI Information

Because DUI statistics have a major impact on insurance rates, we usually include these statistics to better inform our customers. In Michigan there were 35,748 DUI arrests in 2012, with 259 drunk driving fatalities (representing 28% of total traffic deaths). According to MADD, this cost taxpayers a total of $1.3 billion in subsidies. Legislation is currently being pushed to require ignition interlock devices for all drivers convicted of a DUI, which is projected to drastically reduce DUI rates in the sate.

Current penalties for first-time offenses include up to 93 days in jail, fines up to $500, and a license suspension of up to 6 months. For more information on DUI law in Michigan, head here.

The Bottom Line

Michigan is one of the most expensive states for auto insurance. For this reason, we recommend having an agent look over your policy at least twice a year. Because insurance rates are constantly fluctuation, it is a good idea to review them periodically, as other companies may offer lower rates at different times. If you are shopping for insurance, or want some professional help, give us a call. A live agent can look over your policy and guide you through the process, ensuring that you are paying the lowest price available.

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Average Annual Premiums in Michigan = $2,013 | via Insure.com