Compare cheap car insurance for Michigan drivers
Unfortunately, Michigan is almost always ranked as the most expensive state in the country when it comes to car insurance costs. The good news is that no matter how much the state’s average costs are, you can still save by following a few best practices for better car insurance rates.
- Top-rated insurer
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Compare car insurance in Michigan
Most popular Michigan auto insurance companies list
|Company||Direct premiums written (billions)||Market share|
|Auto Club Insurance||$1,504,300||15.8%|
|Auto-Owners Insurance Co.||$979,009||10.3%|
|Michigan Farm Bureau||$456,501||4.8%|
Car insurance quick facts
Minimum liability requirements
Average car insurance costs in Michigan
Here’s the bad news: Michigan is almost always ranked as the most expensive state in the country when it comes to car insurance costs. While the national average for car insurance is usually between $1,200 and $1,300 per year, Michigan’s average annual cost for standard auto insurance is known to top $2,200. There are quite a few reasons for this, which we’ll get into below.
The good news is that no matter how much the state’s average costs are, you can still pay far less and save a lot of money by controlling a few variables and finding ways to earn discounts on your coverage. If you saved 20% with provider discounts alone, your costs could immediately drop down to the range of $1,600 a year.
Cheapest Michigan car insurance rates
|Company||Average annual rate||Learn more|
Can my credit score affect my insurance costs in Michigan?
Yes it can, and most likely will — for better or worse. Multiple studies have linked low credit scores to elevated accident risk, and because of these studies, insurance providers tend to charge drivers more if their credit score is below average. But on the other hand, a great credit score can help you secure a more favorable rate too.
Driving requirements in Michigan
Every driver in the state of Michigan is required to carry minimum liability insurance coverage that includes coverage written as 20/40/10.
- $20,000 bodily injury liability per person.
- $40,000 bodily injury liability total per accident.
- $10,000 property damage liability total per accident.
In addition to liability, Michigan requires that you have no-fault car insurance to cover injuries and damages in an accident, no matter who’s at fault. This includes personal injury protection and personal property insurance.
Some states require that you carry uninsured or underinsured motorist’s coverage (UM/UIM), which protects you if you’re in an accident caused by an uninsured driver. Michigan does not require this coverage, but 1 in 5 Michigan drivers don’t carry minimum coverage.
Optional coverage for Michigan drivers to consider
If you plan on driving on the roads in Michigan, you might want extra coverage for peace of mind.
- Comprehensive. Pays for repairs if your car is damaged by something other than an accident — for instance, a fire or vandalism.
- Collision. Helps with repairs if your car is damaged in an accident.
- Limited property damage. Drivers may recover up to $1,000 from the at-fault driver’s insurance company for vehicle damage repair costs.
- Gap coverage. If your leased or financed car is totaled in an accident, this coverage pays the difference between what your insurer will cover and the remainder of your existing loan or lease.
- Rental coverage. Helps pay for a rental car if you need one after an accident.
- Towing and labor. Provides reimbursement for towing and labor when your car breaks down.
- Custom parts and equipment (CPE). Helps cover permanently installed custom parts or equipment, devices, accessories, enhancements, etc. that alter the vehicle’s performance or appearance.
Roadside assistance in MichiganMany insurers offer roadside assistance as an optional extra, and a few offer it free, typically when you buy collision and comprehensive coverage. Roadside help could come in handy on Michigan’s notoriously rough roads, which take a beating from wintry conditions and salt. As the saying goes, there are two seasons in Michigan: winter and construction season. Watch out for the many road repair and construction projects that take over Michigan’s streets and highways in the summer.
You can also get free roadside help, not including towing, from MDOT on certain Michigan freeways, including parts of US-23, I-96, I-94 and M-14. While there’s no number to call and no way to get help immediately, if your vehicle is stranded on the side of the road and you call the police, MDOT will be notified and may be able to send a vehicle to help. Services include flat tire change, clearing debris after an accident and delivering gas if you’re out of fuel.
What happens if I don’t have insurance in Michigan?
If you’re pulled over in Michigan without proof of insurance, you could face up to $500 in fines — and even jail time. In some cases, you could have your license suspended for at least 30 days or until you’re able to prove you have proper coverage.
Uninsured drivers in Michigan
The state of Michigan requires that all of its drivers have insurance. However, it’s estimated that 21% of the state’s drivers are uninsured — that’s a lot higher than the 12.6% national average, probably due to the state’s high insurance rates.
Can I get temporary insurance in Michigan?
Yes, Michigan is one of several states that accept temporary or short-term car insurance. You can also get a seven-day insurance policy from providers like LA Insurance if you only need car insurance for a week, or you need a week-to-week policy instead of a standard six-month policy.
You might need short-term car insurance if you’ll only be in Michigan for a short time or haven’t had time to choose a new policy after switching cars. Seven-day insurance is more expensive than a standard policy, so an alternative to consider is to sign up for a monthly car insurance policy instead and cancel after a week. Make sure you pick a provider without cancellation fees.
Watch out for an illegal use of seven-day insurance, which is getting insured for a week to update registration and then letting coverage lapse after the policy ends. This is a common car insurance scam in Michigan to watch out for and one reason to consider adding uninsured coverage.
Driving laws in Michigan
While most of Michigan’s laws are similar to the laws in other states, there are a few traffic regulations you’ll want to make note of.
- You can make right-hand turns at red lights, unless there’s additional signage telling you not to. However, you must come to a full stop before making the turn.
- The default speed limit is 55 mph for any two lane road or highway where other speed limits are not posted.
- Car dealerships can’t sell any cars on Sundays, so most of them tend to be closed for business.
- Couples are prohibited from intimate acts inside a parked vehicle, unless the vehicle is parked on their own property.
- Texting while driving is considered a primary offense, and can land you with financial penalties and a ticket on your record.
Not all of Michigan’s unique laws are going to apply to you, but it’s good to be familiar with the rules of the road before you travel too far in Michigan.
Michigan’s blood alcohol limits
Like in all other states, normal drivers in Michigan can’t exceed a BAC of 0.08%, and commercial drivers can’t exceed 0.04%. Additionally, the state’s zero tolerance policy regarding drivers under 21 states that if an underage driver tests anything above a 0.0% BAC with a breathalyzer, they can lose their license for up to a year.
Can I get SR-22 insurance in Michigan?
Michigan doesn’t require SR-22 insurance for drivers who have been convicted of a DUI, caught driving without car insurance, or accumulated too many violation points on their records.
What should I do after an accident in Michigan?
While you can hope that you’re never involved in an accident in Michigan, it’s best to prepare. No matter how minor the accident appears, confirm that everyone is safe before worrying about your insurance claim.
- Safety first. Ensure that no one involved or near the accident has been injured. If everyone is OK and you don’t think it’s dangerous, try to move your vehicle to the side of the road. Consider calling the local police for help.
- Exchange information. You’re legally required to provide your insurance and contact information to drivers involved in an accident. Don’t forget to take down their information too, including details like their vehicle’s make and model, their insurance policy and how to contact them.
- Notify your insurance agent. Call your insurance company before you leave the scene. An agent will be able to guide you through more specific next steps and answer any questions you have.
- Document the scene. Take pictures of the scene from multiple angles, focusing on any damages. Get the contact information of any potential witnesses.
When talking with others involved in the accident, take care not to admit fault — even if you feel it’s true. If you do, your car insurance company could refuse to pay your claim.
Who’s at fault after an accident?
Michigan is a no-fault state. That means that if you’re injured in a car accident, your insurance company will pay your medical bills (up to your policy’s limits), regardless of who caused it.
Case study: Dawn’s experience
Staff Associate Editor
Michigan is a no-fault state. Which means that when I was in an accident, my insurance paid for my car — even though the other driver was at fault. Luckily I had collision coverage at the time, or I would have had over $4,000 in damages out of pocket.
My no-fault insurance was convenient when dealing with a claim, because I spent less than 10 minutes dealing with my insurance to get my car fixed. The downside is that Michigan is one of the most expensive states for car insurance. I managed to score a good student discount through AAA, but my roommate was paying well over $100 a month just for PLPD coverage.
How to report an accident in Michigan
Michigan requires that you report accidents that result in damages that appear to be more $1,000. An investigating officer will write a report on all accidents involving a death or injury.
You’re not required to file a written accident report, though you must report it in person to the nearest police station or police officer.
There’s no penalty for not reporting an accident, as long as the driver stops and exchanges information with the other driver. Failure to do this could get you up to 15 years in jail or a fine of up to $10,000 — depending on how bad the accident is.
When should I get a lawyer after an accident?
If you plan to file a lawsuit against someone else involved in the crash, or if they plan to file a lawsuit against you, it might be beneficial to get legal representation before you go to court. It can also be helpful to consult with an attorney so they can guide you through whatever legal issues you’re facing.
If you’re being charged with a crime, having an attorney is almost essential. A lawyer can often help you to understand the legal process, as well as advise you on the best course of action, both inside and outside the courtroom.
Having the best insurance coverage you can afford protects you, your family and the drivers on your neighborhood roads, no matter what state you’re in. And especially in Michigan, this can be costly.
Researching your available providers, coverage options and price points can help you find the best insurance for your needs. To learn more about these topics, visit our comprehensive guide to car insurance.