If you’ve lived in Michigan for a while, you know that affordable car insurance can be tough to find. It feels like you have a better chance of spotting Pressie, the monster serpent in Lake Superior, than you do finding an affordable insurance policy that won’t bust your budget.
Michigan insurance prices and regulations have been under scrutiny for years. Fed-up residents have long voiced their discontent with incredibly high insurance rates, even going as far as posting billboards on the interstate to spread the word. Despite the high costs of Michigan auto insurance, there are ways to keep your premiums as low as possible.
Keep reading to learn how to find cheap car insurance in Michigan.
Michigan Car Insurance Costs Compared to National Averages and Neighboring States
The average cost of Michigan car insurance is 165% higher than the national average.
No, this isn’t a mistake. The United States reports an average of $1,517 for a vehicle insurance policy, while Michigan reports a wallet-busting $2,878 average.
Another study found a slightly lower car insurance rate in Michigan (on average, $2,309 per year for a full coverage policy). Still, this rate is significantly higher than in neighboring states like Ohio, where the average is $1,034 annually, and Indiana, where full coverage insurance costs, on average, $1,254 per year.
Violent Crime Rate
The high insurance rates in Michigan may be a result of their high violent crime rate, which is at 437.4 incidents per 100,000 people in the population. Compare this to the rates of 370.8 in Indiana and 293.2 in Ohio, and it becomes slightly clearer why Michigan car insurance rates might be so high.
Insurance Laws
Michigan insurance laws also make insurance costs rather hefty in the state. For example, Michigan is a no-fault state, meaning a driver involved in an accident must file a claim with their own insurance company, even if they didn’t cause the accident. So, if someone is driving drunk and hits you, even though they’re at fault, you must file a claim with your own insurance company.
Car Accident Occurrences
One thing that doesn’t seem to be driving up Michigan’s auto insurance costs is motor vehicle accidents. According to recent data, Michigan actually has significantly fewer accident-prone drivers than the national average. Furthermore, Michigan’s death rate from motor vehicle crashes is 9.9 per 100,000 people in the population, which is lower than the national average of 11 per 100,000 people. Still, Michigan car insurance costs remain uncomfortably high for most.
You may be discouraged as a Michigan resident, but don’t give up! There are ways to lower your car insurance and find a policy that gives you a lot of bang for your buck. We can help by walking you through the process of comparing Michigan car insurance quotes so you can get a cheap policy that works for you.
Car Insurance Requirements for Michigan Drivers
Michigan’s no-fault car insurance system is unlike any other state. If you have a vehicle registered in the state, you’re required to carry:
- Personal injury protection (PIP) insurance with no maximum limit: This pays for your medical care, lost wages, etc. if you get hurt in an accident.
- Property protection insurance (PPI) with a mandatory limit of $1 million: This pays for damage you cause to parked cars or other property — but not vehicles being driven.
- Bodily injury liability: up to $20,000 per person and $40,000 per accident.
- Property damage liability: up to $10,000.
In Michigan, bodily injury and property damage liability are called “residual liability insurance.” In most cases, you wouldn’t have to use this coverage; but, if you strike an out-of-state driver, or cause an accident in another state, this coverage would come in handy.
Car Insurance Penalties in Michigan
Because Michigan auto insurance is so expensive, a lot of people simply don’t buy it. More than 20 percent of Michigan drivers are uninsured, but driving without insurance is a really bad (and costly) idea.
For one, you’ll get in legal trouble if you’re caught. A conviction for driving uninsured can mean up to one year in jail, a fine of $200 to $500, or both. Your driver’s license and registration may also be suspended. Fees, jail time, and suspension aren’t anything you want on your record if you ultimately want to save on car insurance. Any one of those will just make it more expensive for you.
But that’s not the end of it. If you get into an accident while uninsured, you’re on your own. You get no payment for damage to your car, damage to other people’s property, medical bills, or lost wages. Even if the other driver was 100 percent at fault, uninsured drivers aren’t allowed to sue for pain and suffering . That could put you in a really bad position if ever you do get into an accident—no matter how safe you are on the road.
Disqualification from No-Fault Benefits: An Additional Michigan Insurance Penalty
Additionally, you are disqualified from all of the No-Fault benefits, and are held financially responsible for the other driver’s No-Fault benefits as well!
You could also be forced to pay for the other person’s lost wages if they end up missing work because of the accident.
It is helpful to understand that No-Fault Benefits cover medical bills, lost wages, replacement services, and damages that you have done to others’ property, regardless of who is at fault for the accident.
These benefits will not provide protection for damages to your car, but they generally protect you from lawsuits. That means it’s a good idea to have (and keep) your insurance in case of an accident that could force you to either pay—or benefit if you’re insured. The key is simply to find a policy that works for you and that saves you money by shopping around.
It’s a lot easier (and smarter) to just buy insurance instead of dealing with the penalties you’ll face driving uninsured! See how much you can save by comparing quotes through Compare.com. Below you’ll find a few hints on where to look for the cheapest car insurance coverage with lists of the lowest offers on average for different kinds of drivers.
The Best Rated Car Insurance Companies in Michigan
You can examine this list for the best-rated auto insurance companies in Michigan. These reviews reflect a mixture of price, quality, and customer satisfaction. Remember, your specific rates, as well as the best Michigan car insurance company for you, will vary based upon your driving history, where you live, what you drive, and what sort of insurance coverage you choose.
MetLife Car Insurance
MetLife has over 145 years of experience in the insurance industry. In metro areas like Detroit, Lansing, and Grand Rapids, where rates are among the highest in the state, MetLife provides some of the lowest rates. They also have an extensive list of unique add-ons and specialty coverages like new car replacement, major parts replacement, and glass replacement with no deductible. If you are sued, they will also provide you with the funds for your legal fees and pay up to $200 per day in lost wages.
Auto-Owners Insurance
This company is headquartered in Lansing, Michigan, making them a local favorite in the region. Auto-Owners Insurance has an A+ rating with the BBB and has received numerous awards and recognition for their outstanding service. They provide some of the cheapest rates in Michigan and have helpful features like GAP coverage and 24-hour roadside assistance.
GEICO Insurance
GEICO has plans that are tailored to meet Michigan’s minimum requirements for auto insurance, and at some of the best rates. Since they are a larger company, they have plenty of licensed agents to assist their customers and are able to pay out at an incredibly fast rate.
Progressive Auto Insurance
Progressive has an A+ rating with the BBB and several programs that allow you to earn discounts based on safe driving habits. Their Snapshot Program was one of the first electronic monitoring applications for drivers to earn discounts. This makes Progressive one of the best companies for high-risk drivers who want a chance to earn lower rates.
Now that you know the top rated auto insurance companies in Michigan, don’t you want to know if they can offer you affordable insurance premiums? All you have to do is use our auto insurance comparison tool and we’ll help you compare rates between over 60 top companies. Just enter your zip code below to get started.
Common Car Insurance Discounts in Michigan
If you live in Michigan, having the option of car insurance discount programs might be your only saving grace. In a state that costs drivers 165% more than the national average to insure their vehicles, even the smallest discount can help.
- Customer Loyalty: Customer loyalty discounts are available in Michigan for drivers that have remained insured with the same company for a certain length of time. These can bring a discount of up to 10%.
- Good Driver: You can receive good driver discounts if you don’t have recent tickets or accidents on your record. Depending on the length of time between negative events, companies award between a 10 and 30% discount. Consider the fact that just one speeding ticket can increase your insurance rates by 49%, and it’s clear that being a safe driver is in your best interest.
- Driver Education: Enrolling in a driver education course can allow you to secure a discount on your insurance. These discounts are anywhere from 5-10% off your premiums.
- Billing & Payment: Billing and payment discounts are for drivers that pay their policy in full, enroll in paperless billing, or use autopay instead of making manual payments. These discounts can save you 2-25% on your insurance rate.
- Policy Bundling: Policy bundling is rewarded with a discount between 2-12%. Policy bundling is when a driver rolls multiple policies into one – for example bundling a homeowner policy and auto insurance policy.
- Good Student: A student who carries a “B” average or higher can get a discount between 5-20%.
- Usage-Based: Usage-based discounts are given when drivers install electronic devices on their vehicle that relay information to the insurance company. The information consists of habits like speed, sudden braking, turning around, and other actions. These bring discounts between 1-30%.
- Safety Features: Having safety features like anti-lock brakes, collision monitoring, assisted lane-changing, and blindspot monitoring can earn a driver a discount between 2-30%.
- Anti-Theft: Anti-theft systems installed on a car can earn drivers a discount between 5- 25%.
- Continuous Insurance: Being continuously insured for periods of six months or more are rewarded with a discount between 5-25%.
Sometimes insurance companies don’t advertise all of their available discount programs. If you live in Michigan and believe you qualify for any of these discounts, ask your insurance company about having them applied to your monthly bill. It’s also always a good idea to call your insurance company on a regular basis (at least annually), to update them on your situation and determine if there are any new discounts for which you might qualify.
Compare Car Insurance Rates by Michigan Cities
Auto insurance rates can vary based upon the metropolitan area where you live. These are expected car insurance rates based on different cities in Michigan.
| City | Annual Insurance Premiums |
|---|---|
| Grand Rapids | $1,821 |
| Ann Arbor | $1,841 |
| Lansing | $1,992 |
| Troy | $2,299 |
| Livonia | $2,393 |
| Flint | $2,732 |
| Sterling Heights | $2,821 |
| Warren | $3,324 |
| Dearborn | $3,405 |
| Detroit | $5,542 |
Notice that cities with a high crime rate, namely Detroit, have significantly higher insurance costs than the rest of the state. If you want to find cheaper Michigan auto insurance, you might consider moving to a city with less crime – or at least comparing insurance rates to find the best deal available.
Michigan Vehicle Registration Fees and Other Costs
If you’re in the market for a new or used car, you’ll need to budget for more than just the vehicle’s sticker price. You’ll be on the hook for basic DMV fees like title, license plate, and registration fees no matter where and how you purchase your new car, truck or SUV, as well as buying a new car insurance policy for your car. But some buyers will find themselves with additional fees such as sales tax, documentation fees, personal property tax, emissions and inspection fees, hybrid and electric vehicle fees, lien recording fees and a slew of other costs.
Check out Compare.com’s comprehensive vehicle costs breakdown to make sure you account for all the added fees you might be on the hook for when buying a car in Michigan.
Takeaways
If you are a Michigan resident, it’s important to carry the proper type of insurance. Even though prices are particularly high, the cost of not having insurance is far greater. You could potentially lose your driving privileges altogether if you are caught without insurance, on top of dealing with the fines and other expenses involved with a conviction. You could also be on the hook for damages or injuries to other people if you drive without insurance, which can drain you financially and cause you to lose your license until you are able to pay these costs.
Because of the ramifications and already high prices of insurance, it’s especially important to have access to a platform that gives you price-saving options. Compare.com is your best bet for comparing different companies in Michigan and determining which cheap car insurance policy is the best option for you.
When you have access to multiple carriers at your fingertips, it’s easier to search for the most cost-efficient option. This, on top of the potential discounts that we discussed earlier, could ease some of the headache (and wallet-ache) caused by the high prices of a Michigan auto insurance policy.
While we can help with determining the cheapest Michigan auto insurance rates, Michigan’s auto insurance laws can come across as complex and confusing. For any questions about laws and required coverage, the Michigan Department of Insurance and Financial Services can provide assistance.
FAQs About Michigan Auto Insurance
What Car insurance is required in Michigan?
Michigan requires PIP (personal injury protection), PPI (property protection insurance), bodily injury liability, and property damage liability. This insurance covers you if you are involved in an accident with an out-of-state driver, as well as if you damage anyone’s property or injure another driver. Michigan drivers are required to carry minimum coverage for a no-fault policy, which will pay a maximum of $20,000 for death or injury to a single person in an accident, $40,000 per accident if multiple people are killed or injured, and up to 10,000 for out-of-state property damage.
How much is car insurance in Michigan?
Car insurance is 165% higher than the national average in Michigan, with the average yearly cost running at over $1800. In some areas, such as Detroit, the price of a policy can run over $5,000 per year.
What happens if you drive without car insurance in Michigan?
If you drive without insurance in Michigan, you can be penalized with jail time, stiff fines, license suspension, and the responsibility of paying the other driver’s medical bills and other expenses. You will also lose all of the privileges of no-fault benefits. Additionally, the Secretary of State will not extend your registration until you show proof of proper insurance. If you are found guilty of damages in the case of a lawsuit when you drive uninsured, you are responsible for paying the damages off in full, or you’ll have your license suspended until you’re able to do so.
Does Michigan require full coverage insurance?
Michigan does not require full coverage, but they do require extensive insurance coverage. However, it’s important to note that many dealerships and credit unions require you carry full coverage insurance if you have a loan or lease on your vehicle.
Can you get car insurance without a license in Michigan?
It is possible to obtain insurance without a license in Michigan, but it can be very challenging. Many companies will not insure non-licensed drivers because of the risks involved; however, there are certain carriers that provide non-owner policies. Just expect to pay a bit more, since you’re such a risk to insurers if you don’t have a license. Given the already high cost of Michigan auto insurance, it’s best to simply maintain your license, so you don’t run into a situation in which you are required to seek car insurance without a license.
