Whether you’re purchasing car insurance for a new or used vehicle in the future or it’s time to renew your current policy, you’ll want to take some time to shop around for insurance providers. Very few vehicle expenses, including fuel and repair costs, are under your control, but insurance is one expense that can vary based on your insurance company. You can save hundreds of dollars by putting time into finding the best car insurance in Michigan.
Types of Required Insurance Coverage in Michigan
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When shopping for the best car insurance coverage in Michigan, you should first understand the various types of coverage and know which ones you need or want. Michigan is a no-fault state, so drivers must purchase a no-fault policy with specific coverage types. According to Michigan law, you must have no-fault insurance coverage if you meet two criteria:
- Michigan requires you to register your motor vehicle.
- You plan to drive your motor vehicle on a Michigan highway.
The four types of coverage required by law in Michigan are personal injury protection, property protection insurance, residual bodily injury liability, and property damage.
Personal injury protection coverage provides reimbursement for medical expenses, in-home nursing services, household care services, and a portion of your lost wages should you be seriously injured in an automobile accident. Property protection insurance pays for damages to any tangible property, including parked cars, fences, mailboxes, poles, trees, and more. Residual bodily injury liability pays for medical expenses for injuries someone else suffers in an accident. Property damage coverage protects you when you damage another driver’s vehicle outside Michigan.
Types of Optional Insurance Coverage in Michigan
You can purchase or add other optional insurance coverages to your automobile policy in Michigan to further protect yourself and your assets in case of an accident. These include:
- Collision. This coverage pays for repairs or replacing your vehicle if you’re involved in an accident after meeting your deductible.
- Comprehensive. If your vehicle is damaged due to theft, vandalism, or a natural disaster such as hail or fire, comprehensive will pay for repairs or replacement, minus your deductible.
- Uninsured/underinsured motorist. If you’re in an accident with an individual who has little or no insurance, this coverage will pay for expenses.
- Mini-tort. Also known as limited property damage, it covers the first $3,000 in vehicle damage not covered by any other insurance.
- Gap (loan/lease payoff). If you finance or lease your vehicle, this would cover the difference between your vehicle’s actual cash value and the amount owed to a financial institution.
- Accidental death. If you or a passenger is killed in an accident, this coverage works like life insurance.
- Roadside assistance. If you experience a breakdown or lockout, this coverage will pay for services such as locksmith, tow truck, battery replacement, tire change, and more.
- Rental car reimbursement. While your vehicle gets repaired after an accident, this coverage will pay for all or part of a rental car.
Michigan Minimum Insurance Coverage Requirement
Each state has its own minimum automobile insurance coverage requirements to drive on the roads legally. The minimum required Michigan insurance coverage is:
- Personal injury protection: $250,000 ($50,000 for Medicaid recipients)
- Property protection insurance: Up to $1 million
- Residual bodily injury liability insurance: $50,000 per person and $100,000 per accident
- Property damage liability insurance: $10,000 per accident in another state
You can opt to carry more coverage for just a few dollars more each month. Talk to your insurance agent to determine what limits are best for you and your situation.
What Are the Penalties for Driving Without Adequate Automobile Insurance Coverage in Michigan?
Driving without proof of insurance in Michigan is a misdemeanor, with the following penalties:
- $200 to $500 fine
- License suspended for up to 30 days
- The reinstatement fee for the license
- Driver responsibility fee of $500 for two years
- Up to a year in prison
- Court fees
Where Do You Get the Best Car Insurance in Michigan?
Many factors go into your car insurance premium, such as driver age, driving history, credit score, vehicle, location, and more. To get the best car insurance in Michigan, shop around for quotes for various types and limits of insurance. U.S. News & World Report states that the average driver in Michigan pays $2,130 per year — 61% higher than the national average — making it even more important to shop around.
According to U.S. News & World Report, these are the best car insurance companies overall:
- Progressive: $1,069
- GEICO: $1,138
- USAA: $1,216
- Travelers: $1,416
- Meemic Auto Insurance: $1,687
- State Farm: $2,078
- Farmers: $3,203
- Hanover Insurance: $5,231
These quotes are for minimum automobile insurance coverage for drivers with clean records in Michigan. As you can see, insurance premiums can vary by hundreds and even thousands of dollars for the same driver, vehicle, and policy.
The same report shows that the cheapest car insurance options in Michigan for teen drivers are:
- USAA: $3,096
- GEICO: $3,237
- Meemic Auto Insurance: $3,804
- State Farm: $6,046
- Progressive: $6,887
- Travelers: $7,302
- Farmers: $13,930
- Hanover Insurance: $14,095
The statewide average for a 17-year-old female or male driver is $7,300. By law, Michigan cannot consider gender when calculating premiums at any age.
If you’re interested in carrying full coverage automobile insurance coverage, the best car insurance companies in Michigan include:
- Progressive: $1,081
- GEICO: $1,227
- USAA: $1,251
- Travelers: $1,456
- Meemic Auto Insurance: $1,736
- State Farm: $2,139
- Farmers: $3,374
- Hanover Insurance: $5,645
The statewide average for full insurance coverage is $2,239. When comparing full coverage to the minimum insurance coverage requirements for annual premiums, Progressive costs only $14 more per year to add full coverage to your policy. Even if you go with the most expensive option, the difference between the minimum and full coverage difference is $414 per year, or just $34.50 a month. You can see how upping limits or adding coverage doesn’t have to mean huge hikes in premiums. That’s why it’s important to explore all your options.
When you’re ready to register your vehicle and get it on the road, find the best car insurance option for your needs in Michigan. Get several quotes to compare rates and policies before signing off on your coverage.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.