Cheap insurance in Michigan is hard to come by. In fact, the Wolverine State is usually ranked as the #1 most expensive state to buy car insurance. Recent changes in state law are aimed at combating these costs, but no one is certain how well they will work.
In July of 2020, state laws changed to give Michigan drivers more control over the amount of Personal Injury Protection (PIP) insurance they choose to hold. Michigan’s high PIP limits have been a factor in keeping the costs of car insurance high, but a large number of drivers with little or no PIP poses its own problems.
Some drivers are now able to opt out of PIP coverage in Michigan. For them, cheap insurance in Michigan may mean they pay less for auto insurance than ever. No matter your situation, however, it’s important to go online for the best car insurance quotes Michigan rules allow.
Since Michigan car insurance just got a little more complicated, brushing up on the details is a wise idea.
The more you know, the easier it’ll be to get cheap insurance in Michigan. Here are the top questions Michigan drivers like you ask about their Michigan car insurance plans.
How Much Car Insurance Do You Need in Michigan?
Minimum car insurance in Michigan includes:
- Bodily Injury Liability: $20,000 per individual, $40,000 per covered traffic incident
- Property Damage Liability: $10,000
- Uninsured Motorist Bodily Injury: Same amounts as Bodily Injury above, may opt out
- Property Protection Insurance: $1 million; unique to Michigan
- Personal Injury Protection (PIP): $0, $300, or $500 deductible for unlimited coverage
Note that these standards are subject to change due to legislation. Insurance policies opened after July, 1 2020 have a variety of other options for PIP, ranging from $250,000 full coverage to $50,000 for Medicaid recipients to a 100% opt-out. Several options have specific eligibility requirements.
Verify PIP plan eligibility with your insurer before you commit.
Michigan is one of about a dozen states that use “no fault” car insurance. When you are in an accident in a no fault insurance state, your insurer automatically pays for certain damages, capped by limits on the insurance policy you hold. This is reflected by your Personal Injury Protection plan.
PIP can pay for covered medical costs and up to 85% of lost wages for three years after an accident.
The no fault approach is different from most states, which require you to make a claim against the at-fault driver’s insurance. While it could contribute to more expensive car insurance premiums, it also means that you can get certain accident-related costs paid for quickly.
Why is Car Insurance so Expensive in Michigan?
Cheap insurance in Michigan is worth its weight in gold. It has been ranked as the #1 most expensive car insurance state for seven years and almost never ranks outside of the top three.
Michigan’s unique implementation of Personal Injury Protection insurance is one of the biggest reasons for high costs. It was previously interpreted to guarantee unlimited, lifetime medical benefits to accident victims.
Now, that’s beginning to change, with more opportunities to waive or scale back coverage.
About 20% of Michigan drivers do not have insurance, another major contributor to costs. In past years, auto insurance claim fraud has also been a serious problem.
How Can You Save Money on Car Insurance in Michigan?
In Michigan, auto insurers have been banned from using factors like credit scores, marital status, zip code, occupation, and home ownership to determine their rates. This means variation between policy costs can be less than in other states. Insurers can use “territorial rating,” so where you live is still a factor.
Finding cheap insurance in Michigan means starting with the best deal possible, then avoiding accidents or traffic infractions that could raise your rates. Insurers are still able to offer limited discounts based on road safety and other behavior, like taking a defensive driving class or installing new safety features on your vehicle.
Getting car insurance quotes Michigan drivers can use from many different insurers is a crucial step in the process. Don’t stop with just two or three insurance companies. Compare as many as you can to save more.
What Happens if You Don’t Have Car Insurance in Michigan?
Driving without insurance is a misdemeanor in Michigan.
Potential penalties include:
- A “driver responsibility fee” of $500 per year
- A driver’s license suspension of up to 30 days
- A reinstatement fee totaling $125
- Up to one year in jail
Similar penalties apply to failing to show proof of car insurance when requested by law enforcement.
Ready to find the best Michigan car insurance? Here at Cheap Insurance, you can compare policies from all the top car insurance companies in just a few clicks. Need more advice? Contact our team for expert help.
Who has the cheapest car insurance in Michigan?
Cheap insurance in Michigan is a critical part of saving money, since this is the #1 most expensive place for car insurance anywhere in the United States. Because premiums are so high, many car insurance companies operate in Michigan – and only one can truly have the best deal on Michigan car insurance.
Michigan insurance companies change their rates frequently, so finding the best bargain means going online. Look at car insurance quotes Michigan drivers have been offered from all the big insurers before you choose. And remember, you can change to another insurer if you find a better deal.
Who has the best auto insurance rates in Michigan?
Auto insurance rates in Michigan are consistently the highest in America. One study showed Michigan ranking #1 for the most expensive car insurance seven years in a row. The difference in price between expensive and cheap insurance in Michigan can amount to hundreds of dollars a year.
But finding deals isn’t easy.
When it comes to car insurance quotes Michigan drivers will notice many car insurance companies have similar rates. Uncovering the best rates means researching as many Michigan car insurance brands as possible. You can go online to get the latest quotes and compare the best deals on policies.
What is the average cost of car insurance in Michigan?
The average cost of car insurance in Michigan is the highest anywhere in the country. Cheap insurance in Michigan is still among the most expensive, clocking in around $1,200 per year. The average car insurance premium in Michigan is higher, totaling more than $2,800 per year.
Cost-cutting changes were made in 2020, but results could take years.
The average Michigan driver can expect to pay $233 in car insurance every month. Every year, thousands of people go online to compare car insurance quotes Michigan insurers offer. The time you spend browsing insurers could save you $100 a month or more.
What is the minimum auto insurance coverage in Michigan?
Minimum auto insurance coverage in Michigan recently changed. Some people can now reduce or waive Personal Injury Protection (PIP), which makes cheap insurance in Michigan more accessible. It’s best to verify PIP program eligibility with your insurer.
In addition to PIP, Michigan drivers must hold $20,000 per individual in Bodily Injury, with $40,000 per covered traffic incident. There is a requirement of $10,000 in Property Damage liability, plus Michigan’s unique Property Protection Insurance, covering up to $1 million in damages.
Because of Michigan’s high minimum standards, the easiest way to save is to compare car insurance quotes Michigan insurers offer.
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Average Annual Premiums in Michigan = $2,013 | via Insure.com