
Sign up & start saving!
Get our weekly newsletter for the latest in money news, credit card offers + more ways to save
Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.
Updated
This short-term insurance policy can fill in for coverage when you’re in between policies. Though getting a policy for seven days is better than driving uninsured, it’s not right for every driver. You run the risk of overlapping coverage or fail to renew your policy at all. In most cases, it’ll save you money to find a six-month policy through your insurer to avoid fines for a lapse in coverage.
This short-term policy could help new residents get covered until they can find a long-term policy. It could also cover visitors to Michigan or help when you rent a car. Many drivers can purchase temporary car insurance, however some companies in Michigan have promoted a seven-day insurance policy throughout the state.
Michigan has barred controversial practices with these temporary policies with one insurance company in particular — L.A. Insurance. Local news outlets say many Michigan drivers use this policy to register their cars and then let the coverage lapse because insurance is so expensive in this state.
For drivers still shopping around for the perfect provider, you might consider a standard six-month policy or a monthly insurance policy instead. This longer term could help you avoid a costly car insurance lapse.
The average Michigan car insurance premium is $2,200 for an annual policy, but the cost per day is likely much higher for a seven-day policy. Your premium could vary based on the provider and your address. This is typical for any short-term insurance.
The state has put the brakes on this policy with some providers because of its misuse. However, you might need a shorter policy for several reasons:
You do need some other form of car insurance to drive legally in Michigan. While a seven-day policy could meet those requirements temporarily, you would need to renew this policy or purchase a longer term to drive legally after your seven-day policy expires.
Michigan is known for the highest average premiums in the nation. That’s likely because the state requires drivers to keep $20,000 in bodily injury liability per person, $40,000 in bodily injury per accident and $10,000 for property damage per accident.
In addition, drivers must carry personal injury protection with high policy maximums and personal property insurance to meet the state’s no-fault laws. All drivers need to meet these requirements, whether using a seven-day or longer-term policy.
You can look for several characteristics to find the perfect insurance match. Those include:
A seven-day insurance policy is controversial in Michigan because drivers may misuse the policy to register their cars and then let coverage lapse. However, there are several reasons you might need a shorter policy, such as buying and selling a car within a short time.
No matter which term length you choose, you do need to purchase car insurance to drive legally, even if the state has high premiums.
This insurer has four dental plans to choose from — compare costs and features now.
You can pay for car insurance in Bitcoin, even if your insurer doesn’t accept it yet.
Here’s where to get financial help for yourself and your business if you’ve been affected by the storm in February 2021.
Learn cost-sharing terms to find out how much you’ll really pay for healthcare.
This fintech just branched out into low-cost life insurance — but its lineup is limited.
Find unusually low face values for a whole life policy, ideal for supplemental insurance.
Learn your policy options based on the type of transplant and your health status now.
Get pet insurance that reimburses 100% of your vet bills or a separate wellness plan.
Use your death benefits to help pay for medical expenses while you’re still alive.
A poor driving record may result in higher rates on your life insurance, with some insurers turning you away altogether.