Michigan Auto Insurance Guide

Michigan Minimum Insurance Requirements

Michigan requires drivers to maintain auto insurance, and they must buy insurance on a vehicle before it can be registered. The minimum liability coverage required by law in MI is $50,000 / $100,000 / $10,000. Additionally, one must carry $1 million in property protection.

PIP insurance is also needed in Michigan, but the limits vary depending on the health insurance status of the insured individual.

Other coverages like comprehensive or collision are available but not required by state law. They may be required by your lienholder, however.

MI drivers must always have proof of insurance in the vehicle.

Key Takeaways

In Michigan, drivers must be insured. They must always carry:

• $50,000 for bodily injury to others
• $100,000 per accident for all injuries
• $10,000 property damage coverage
• PIP coverage, which varies depending on the health insurance of the insured individual

Introduction to Michigan Auto Insurance Requirements

Michigan auto insurance requirements are changing. From 2019 to 2022, the state has been increasing the amount of liability coverage a driver must carry. Thanks to the increasing costs of medical care, building materials, and automobiles, the state has increased the minimum coverage requirements.

Note that these changes are still underway, and we will update this information as needed.

Michigan auto insurance may cost more than it once did, but drivers can rest assured their liability coverage will be enough to pay for damages they cause.

MI Auto Insurance Coverage Descriptions

Michigan requires drivers to carry liability coverage plus PIP, as mentioned above. But there are more types of auto insurance coverage available, and your lienholder may require you to carry them.

• Collision coverage pays for damage to your vehicle if you collide with a vehicle, wall, structure, etc.
• Comprehensive coverage pays for other types of damage, like hailstorms, theft, fire and so on.
• Glass coverage exists to help pay for expensive windshields.
• And mechanical breakdown coverage may pay for mechanical issues if your vehicle is no longer under warranty.

Other coverage options include rental car reimbursement and roadside assistance.

Michigan Minimum Auto Insurance Requirements

$50,000 Bodily Injury to Others

If you’re responsible for injuring one person, this coverage helps to pay medical costs and more.

$100,000 Bodily Injury Per Accident

If you’re responsible for injuring several people, the insurer will pay up to $100,000 for medical costs and more.

$10,000 Property Damage

Most vehicle accidents cause some amount of property damage, whether it’s to other vehicles on the road, real estate, or another person’s belongings. This coverage pays for these damages. If these damages are more than $10,000, the at-fault driver will need to pay the difference.

PIP, or “Personal Injury”

Michigan has unique PIP requirements. In short, PIP in this state will pay only after someone’s medical insurance is consulted.

New Driving Laws in Michigan

Michigan became a “no fault” state in 2019. That means auto insurance will pay for medical costs, missed work, and even funeral expenses if needed, regardless of who is deemed “at fault” after a car accident. However, the no fault insurance coverage does not affect property damage.

Ultimately, everyone on the road has more medical coverage this way. But everyone’s health insurance will be consulted before a claim can be finished and paid.

Penalties for Failure to Carry Michigan Auto Insurance

Michigan takes auto insurance very seriously. If you have auto insurance but do not have proof of insurance on hand, the fine is $50.

If you’re caught driving without insurance in MI, the penalties include:

• A fine up to $500
• Up to one year in jail
• You may have your license suspended for 30 days, or until you buy auto insurance and submit those documents to the court

How to Get the Cheapest Michigan Auto Insurance Policy

Insurance companies in MI are known to gradually increase your rates over time. If you need to save money on auto insurance, you should shop around every few years. Insurers will offer safe drivers attractive rates to lure new business.

Other ways to save money on Michigan auto insurance are:

• Increase your deductibles if you have full coverage: The higher your deductible, the less your insurance will cost. This doesn’t apply to liability-only policies, and your lienholder may require you to carry a lower deductible.
• Cut down on bells and whistles: For instance, if you own several vehicles, you may not need rental car coverage.
• Seek a “bundle”: Insurers may offer you a discount if you have several types of insurance with one provider. If you have a motorcycle, boat, homeowner’s or renter’s policy, you can save more money by bundling them all together.
• Consider a price-per-mile policy: These auto insurance policies are best for low-mileage drivers who don’t drive much. You will report your mileage several times a year and may have to send maintenance documents to the insurance company.

Read More: 8 Simple Ways to Save You 90% On Your Car Insurance

Michigan State Auto Insurance Premiums

Michigan insurers classify drivers and vehicles into risk categories. So, your price for auto insurance is based on your risk group, and your behavior.

Electric vehicles (EVs), fast foreign cars, very heavy vehicles, young drivers, and unsafe drivers tend to cost the most to insure.

When calculating your premium, insurers will consider your:

• Age
• Gender
• Marital status
• Vehicle value
• Vehicle age
• Driving experience
• Type of vehicle
• Claims history
• Points on your license
• Tickets, moving violations and DUI
• Zip code and garage location

MI Auto Insurance Rates by Carrier

We scoured the web to find the best Michigan auto insurance rates for very safe drivers, age 30 or more, with no claims or DUIs. But remember, your cost will be based on the variables above.

For help finding Michigan car insurance quotes, contact us today or simply put your zip code below and hit “Get A Quote” !