Michigan Car Insurance

According to Michigan’s Department of Licensing and Regulatory Affairs, Michigan has the most comprehensive no-fault auto insurance system in the United States. Michigan requires all vehicles to carry basic no-fault insurance, which includes three basic parts — personal injury protection, property protection, and residual bodily injury and property damage liability insurance.

Personal injury protection pays for your medical expenses resulting from an automotive accident, regardless of who is at fault. Personal injury protection in the state of Michigan provides unlimited medical and rehabilitation benefits for up to three years if you’re in an auto accident. Property protection pays for damages your vehicle has caused to other people’s property. Bodily injury and property damage liability insurance pay for any damages caused due to your negligence in an auto related accident:

Required Coverages in Michigan:

  • Bodily Injury Liability Per Person: $20,000
  • Bodily Injury Liability Per Accident: $40,000
  • Property Damage Liability: $10,000

Uninsured motorist insurance, which pays for losses and damages caused by an uninsured, underinsured, or hit-and-run driver, is optional in the state of Michigan. If you drive without basic no-fault car insurance in Michigan, you can be sued and held personally liable, may be convicted of a misdemeanor, and fined $200 to $500 and/or put in jail for up to one year. Your license may also be suspended for 30 days, or until you are able to prove insurance coverage. Drivers unable to prove insurance may be required to pay a fine, or have their license or registration suspended.

Michigan law ensures that eligible Michigan drivers (with a car registered in Michigan or with a valid Michigan driver’s license) will be able to obtain auto insurance. If an insurance agent denies you coverage, they must give you a reason for not providing an auto policy. The Michigan Auto Insurance Placement Facility (MAIPF) was created by state law to aid consumers who are not eligible for coverage in the voluntary market. Drivers

Determining Your Rate in Michigan

The rates of car insurance for Michigan are regulated by state law on a competitive basis. Michigan lists 65 insurance companies in their buyer’s guide. They compete with one another for consumer business, and are prohibited from communicating with one another about the rates they set. State law regulates what factors may be considered when setting an auto insurance rate. Car insurance quotes in Michigan are set by common factors including the type of vehicle you own and where you drive, where you live, your age, gender, and marital status, your driving history, and your credit history. This information determines your risk of claims covered in the auto policy. The Insurance Information Institute reports that the average expenditure for auto insurance in Michigan is $508.

Discounts may be applied to an auto insurance premium for safety features like anti-theft systems. A good driving history without tickets or accidents within a period of time, usually three years, may also entitle an auto insurance policy to discounts, and insurance companies may also apply discounts to a consumer with multiple policies with the same company. Ask your insurance provider what discounts you may be eligible for to reduce the amount of premium you pay.