Michigan Car Insurance Requirements

Michigan car insurance requirements

Driving Statistics for the Great Lakes State

Michigan is the 10th largest state by population and 11th in terms of land area. This balance between population and road area has benefited Michiganians, as they are the 15th safest state in the country, when measured by amount of deaths per miles driven.

Year: 2018Statistics (totals)
Miles Driven (millions)102,398
Fatal Crashes905

Fatality Facts 2018 State by State

Michigan Car Insurance Requirements

In efforts to keep its drivers safe, Michigan requires a minimum amount insurance be in place to operate a vehicle.

Bodily Injury (BI): $20,000 per person / $40,000 per accident.

Coverage for expenses related to the injury of people due to an accident.

Property Damage (PD): $10,000 per accident.

Coverage for damage to other people’s property.

Unique Driving Laws

The Great Lakes State has a few laws, unique to Michigan, that may help keep you safe while cruising around its lakes.

  • Children under 18 or prohibited from riding in open pickup truck beds when traveling over 15mph.
  • Drivers are required to use turning or hand signals to turn, at least 100 feet prior to making the turn.
  • Passing on the right is legal when there are more than two lanes, provided a driver does not leave the roadway or use bike lanes.
  • Texting while driving is prohibited.
  • It’s required to use your headlights when visibility becomes less than 500 feet.
  • Drivers must allow three to four seconds between them and the vehicle they are following.
  • When parking on a street, the vehicle must be within 12 inches of the curb and facing the same direction as the flow of traffic.

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Michigan Teen Driving

The Great Lakes State utilizes a multi-level process that is constructed so a potential driver can gradually gain more real-world driving experience and confidence and is ultimately awarded a restriction free license.

  • Upon turning 14 years and 9 months of age, a teenager can apply for a Level 1 license. They must successfully complete a Segment 1 driver education course that will include at least 24 hours of classroom instruction, 6 hours of behind the wheel driving, and 4 hours of observation as a passenger. In addition, the teenager would also have to pass a vision test. If the teenager was successful and received the Level 1 license, they would need to:
    • Continue practicing driving under the supervision of a licensed driver age 21 or older for a minimum of 30 hours including 2 at night.
    • After 3 continuous months of practice, the teenager could enroll in a Segment 2 driver education course which includes 6 hours of classroom instruction.
  • After turning 16 years of age, a teenager that has driven on the Level 1 license for at least 6 months, has no violations or suspensions, and has had no at-fault accidents for at least 90 days, can apply for a Level 2 license. With a level 2 license, a teenager is:
    • Allowed to drive alone but must be accompanied by a designated licensed adult over the age of 21 when driving between 10pm and 5am, except for special situations such as driving to/from employment.
    • Not allowed to have more than one non-family member in their vehicle under the age of 21 unless they are accompanied by a parent or designated adult over the age of 21.
  • At age 17, a teenage drive is automatically issued a Level 3 license, assuming they have driven under the Level 2 license for at least 6 months and have remained violation and suspension free, without any at-fault accidents in the past 12 months. All nighttime restrictions are lifted for a Level 3 license.
  • Upon turning 18 years of age, all Graduated License laws end.

Top Insurance Carriers in North Central Region (includes MI, IL, IN, OH, WI)

  • USAA (5 out of 5 stars)
  • Westfield (5 out of 5 stars)
  • IN Farm Bureau (5 out of 5 stars)
  • Erie Insurance (5 out of 5 stars)
  • COUNTRY Financial (4 out of 5 stars)

Auto Insurance Satisfaction J.D Power Finds

Average Insurance Expenditure* for Michigan

Although Michigan is the 15th safest state in the U.S., its drivers pay the 2nd most for auto insurance. On average, Michigan drivers are paying nearly 45% more for insurance than the rest of the country.

Michigan: $1,359

USA: $936

*Defined as annual cost of insurance regardless of mix of coverage (liability, comprehensive, collision)

Insurance Information Institute

Often Overlooked Discounts for Michigan Car Insurance

Given the amount drivers in the Great Lakes State expense on auto insurance, its important to utilize every discount you can.

  • Multi-Line: combine your Home, Renters, Life or Health policy with your Auto and become eligible for a discount.
  • Accident Record: keep your vehicle with the same insurance company for at least 3 years without an accident and receive a discount; a discount that could increase the longer you are with the company and accident free.
  • Telematics: install a device in your vehicle or download an app that monitors your driving, and receive discounts up to 30% based on your driving tendencies.
  • Student Away: you may be eligible for a discount if there are drivers on your policy that are under the age of 25, go to school that is more than 100 miles from home, drive only when at home, and keep the vehicle at home when away at school.
  • Safety Belt: if you wear your seat belt, you can receive a discount.
  • Vehicle Safety: if you are insuring a vehicle manufactured in 1994 or newer, whose make and model has good loss experience, you could receive a discount.


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