Michigan Auto Insurance Rates – Compare Free Quotes From Top Companies

Find cheap Michigan car insurance and possibly reduce your automobile policy premium by thousands of dollars. If you are not currently covered, view low-cost policies with small down-payments so you can quickly get back on the road. We compare and rank companies for preferred and high-risk coverage so you can instantly review online free quotes.

Michigan Car Insurance Requirements

All residents that own a vehicle or have a current driver's license must buy no-fault auto insurance. Although rates can vary, generally, policies are available. However, you may be denied coverage if your current license is not active, you will be residing in the state for less than a month, there was a major violation within the last 36 months (DUI, reckless driving, etc), or your policy lapsed within the last two years. Multiple accidents and major violations may require the applicant to purchase a high-risk policy.

Policies are underwritten to determine eligibility, and the cost of coverage. Coverage is offered through employers or organizations (Group), and privately through different carriers, When buying a policy yourself, it's important to shop multiple companies (through our website, for example), to ensure you are paying the lowest possible premium. Typically, it's most cost-effective to compare rates from three or more companies.

If no carrier will offer a policy, the Michigan Automobile Insurance Placement Facility (MAIPF) may be able to help. High-risk companies and broker/agents can apply for you. Often, if a high-risk policy is issued, the driver of the vehicle may be excluded from other policies in the household. Also, PIP benefits will not be extended. These regulations also apply to persons operating a motorcycle. Note: Seniors that drive less than 3,000 miles per year, are entitled to a policy discount.

Bodily Injury And Property Damage

The minimum BI/PD limits in Michigan are $20,000 per person, $40,000 per accident, and an additional $10,000 of property damage (20/40/10). Often, these limits are insufficient to provide the appropriate protection. For example, if your negligence is the cause of another driver to die or become seriously injured, much higher limits will be needed. An accident in any other state may also leave you underinsured. We recommend increasing liability limits to 25/50/25, or 50/100/50. The Michigan DOI determines required limits.

Personal Injury Protection

Personal Injury Protection (PIP) covers your necessary and reasonable medical expenses if you are involved in an accident, regardless which party was at fault. There is no limitation on the amount of money paid by the insurer. Three years of potential lost work-income can also be recovered. Thus, if you earned $50,000 per year, and were not able to perform your normal job duties, up to $150,000 could be claimed.

Additional reimbursement of up to $140 per week is available for many tasks and services you may no longer be able to perform. Drivers that have current healthcare benefits (Group, individual Marketplace, and private) or disability benefits may be able to lower their PIP premium by utilizing those benefits as their primary coverage. However, "short-term" plans may have exclusions and often can not be used in conjunction with the PIP coverage.

PPI (Property Protection Insurance) provides up to $1 million of coverage for damage to other person's homes, structures, buildings, unattached structures and related items. If you hit a car or truck that was parked, coverage also is provided.

 

Uninsured Drivers In Michigan

 

Operating A Vehicle That Is Not Covered

When driving an uninsured vehicle in Michigan, if you are involved in an accident, you can be held liable for injuries and subsequent damages. The cost of hiring an attorney and potential out-of-pocket expenses you may be required to pay could be substantial. Also, any medical expenses you incur resulting from injuries, will not be covered by an auto policy.

The penalty for driving without no-fault insurance is a $500 fine, 12 months of jail, or both. This applies to situations where you knowingly drive another car that is not covered, or allow another person to drive your uninsured vehicle. Once convicted, you may be required to purchase a "high-risk" policy, which can cost significantly more than a standard policy. Also, if you move to a different state, having no prior coverage will increase your premium.

Note: Non-owner car insurance coverage is also offered through several companies.  Prices for coverage are fairly inexpensive, and policies can be customized to fit your situation and needs.

Non-Mandatory Coverage

Mini-Tort Benefits -- If you are involved in an accident that is mostly (50% or more) your fault, you may be sued for up to $1,000 in property damage. This coverage can be used when the other vehicle owner's policy does not full pay for all of the damages. The cost of the benefit is fairly used since it's not a common claim.

Higher Liability Limits -- As previously discussed, the mandatory Michigan limits of $20,000 per person, $40,000 per accident, and $10,000 of property damage are fairly low. 100/300/50 is the standard amount for leased and financed vehicles, and the protection provided is worth the higher premium you will pay. If there are no pending claims, typically you can change limits at the policy anniversary date of the policy.

Uninsured Motorists -- Protection is provided when another driver has no coverage, and causes serious injuries to yourself or another household member. Medical bills, vehicle repair expenses, and other items can be recovered from your own insurer. If awarded money from a lawsuit directly related to the accident, once again, you can recover damages up to your specific limits.

Underinsured Motorists -- Similar to uninsured motorists, although other driver has coverage, but it's not sufficient to reimburse you for your damages. Therefore, your carrier will pay the difference, up to your specified limits.

Collision Coverage -- Repairs and damage to your vehicle from an accident are paid for with this option. A deductible applies (typically ranges from $250-$1,000), and the benefit will never exceed the value of the car or truck. Financed or leased vehicles must purchase coverage. Three options are offered -- Limited, Standard, and Broad Form.

Comprehensive Coverage -- Common comprehensive claims are fire, theft, vandalism, glass-breakage, or animal collision. A no-deductible option is available by most companies, and like collision coverage, financed or leased vehicles must include this benefit. However, vehicles with no outstanding lien may choose a liability and comprehensive only option.

Rental Reimbursement -- Substitute transpiration expenses are paid when your vehicle is involved in a covered claim. Typically, the maximum reimbursement is $25-$40 per day, up to 30 days.

Towing And Roadside Assistance -- Towing, labor, and several other expenses (fixing a flat tire and opening a locked door) are covered, typically up to $50. Often, this benefit is included on all vehicles with collision coverage. Your credit cards or recently-purchased or leased vehicle may also include the benefit.

 

Overhaul Of MI Car Insurance Laws Will Reduce Rates Effective July 2020

Governor Gretchen Whitmer and the State Legislature passed legislation that should substantially reduce prices for all drivers. Limits can be customized by the policyholders, instead of a requirement to purchase unlimited coverage. Drivers will be able to choose different levels of PIP benefits, which historically make up about 50% of a policy premium.

Policyholders will also be able to completely opt out of PIP, if qualified health insurance benefits are available and used.  For eight years, Personal Injury Protection must be reduced. Also, specific underwriting factors must be eliminated, including occupation, zip code, credit score, level of education, and home ownership. Michigan is (was) the only state requiring unlimited PIP.

Healthcare providers will also charge less for injuries to drivers, beginning in 2021. This will include both inpatient and outpatient treatment, surgeries, therapy, and office visits. Total expected savings for state residents is about $500 per year. Detroit residents may save as much as $1,000 per year.

The Michigan Catastrophic Claims Association fee will drastically reduce since unlimited lifetime medical benefits will not be mandatory. However, drivers can choose to retain full benefits, but the policy premium will likely increase. Medical providers will provide fee schedule which will result in increased transparency.

How To Reduce Auto Insurance Rates Michigan

Is Michigan Still The Most Expensive State To Purchase Auto Insurance?

In several areas of the state, it is, although there are many cities where prices are very attractive. Drivers with less than three years of driving experience,  in combination with no-fault insurance, and no monetary caps is the perfect recipe for high rates.  The Department of Motor Vehicles provides additional information. Several  other reasons are listed below:

Too Many Lawsuits -- Insurance carriers are often sued by patients and other providers. Although they are not always victorious, the legal expenses are staggering.

No Price Controls -- Fee schedules are  utilized in other states, but not Michigan.  These government price controls for medical services in no-fault situations cost millions of dollars each year.

Too Many Attorneys -- Appropriate legal counsel is always needed, but increased involvement of lawyers in vehicle injury and death cases typically raises insurance prices.

Impact Of Supreme Court Decision -- McCormick Vs. Carrier decreased legal requirements when suing drivers involved in an accident.

 

Michigan Cities With The Lowest Car Insurance Rates

Prices can widely vary, depending on the type of vehicle, age of driver, liability limits and deductibles, zip code, available discounts, and of course, the insurer.  The 15 cities that are most likely to feature the cheapest non-commercial auto rates  are listed below:

Lake Orion
Ann Arbor
Midland
Kenwood
Wyoming
Portage
Holland
Chesterfield
East Lansing
Bay City
Battlecreek
Grand Rapids
Rochester Hills
Kalamazoo
Lansing

 

Michigan Zip Codes With The Lowest Car Insurance Rates

48640

48642

49855

49417

49544

49833

49866

49127

49849

49841

48109

49201

49456

49910

49814

49460

49546

49202

49426

48808

48104

49078

49401

49861

49971

48837

48894

49428

49315

48820

Michigan Zip Codes With The Highest Car Insurance Rates

48205

48227

48213

48224

48214

48201

48228

48206

48204

48215

48238

48234

48210

48208

48202

48235

48211

48216

48207

48221

48212

48203

48219

48226

48209

48223

48126

48120

48217

48075

 

Essential Insurance Act

This legislation guarantees that auto and home insurance coverage will be offered to eligible Michigan residents. Applicants must own a vehicle and have a valid driver's license. Although most applicants are accepted, denials are possible. The most common reasons  that applicants are denied are:

Within the last 24 months, your policy was canceled for not paying the premium.

You have been convicted of a DUI, hit and run, reckless operations,  or other vehicle-related felony within the last three years.

Your driver's license is not active or has been suspended.

The vehicle does not meet safety requirements for Michigan.

You will not be residing or driving in Michigan for 30 days.

You have been convicted of defrauding an insurer within the last 60 months.

The number of points on your driving record exceeds eligibility requirements.

 

Michigan Catastrophic Claims Association (MCCA)

The MCCA was created  in 1978 by Public Act 136 to help reimburse drivers for vehicle claims from the unlimited no-fault legislation. At the time, property and casualty carriers were paying extremely high premiums for the reinsurance of no-fault policies and the potential of unlimited lifetime medical treatment.

All insurers in the state must be a member of the organization if they sell motorcycle or vehicle auto insurance coverage.  A yearly premium is paid to help fund MCCA current catastrophic expenses, and shortfalls from previous years. The current yearly assessment per vehicle is $192. A person driving a motorcycle must be involved in an accident with a motor vehicle to collect damages. The purchase of no-fault coverage (operation of motorcycles) is not a requirement.

The Board of Directors are selected by the DOI Director. Additionally, several committees (investment, communications, audit, actuarial, personnel, and information technology) help manage all services. Prices of coverage are based on the number of vehicles in the household, and not the number of drivers. PIP is also based on the number of vehicles in the household.

Complaint Ratios Michigan Insurance Companies

Auto Insurance Complaint Ratios

Complaint ratios are provided by the Department of Insurance (DOI), and provide data regarding the volume and frequency of complaints that a carrier receives. Shown below are the most recent ratios. The insurers with the lowest percentage of consumer complaints are listed first.

.03 -- Citizens Insurance

.03 -- Home-Owners

.03 -- Frankenmuth Mutual

.03 -- MEEMIC

.05 -- State Farm Mutual

.05 -- Cincinnati Insurance

.05 -- Fremont

.06 -- Auto-Owners

.07 -- Pioneer State Mutual

.08 -- Allstate Fire & Casualty

.08 -- Farmers Insurance

.08 -- Member Select

.08 -- Westfield

.09 -- Farm Bureau

.10 -- USAA

.10 -- Allied

.10 -- Allstate Property & Casualty

.10 -- Hastings Mutual

.11 -- Auto Club Group

.11 -- Integon National

.13 -- Geico

.13 -- Metropolitan Group

.16 -- LM General

.23 -- Everest

.25 -- Esurance

.30 -- IDS Property And Casualty

 

Motorcycle Insurance In Michigan

Operators of motorcycles are required to purchase liability insurance. The no-fault law does not apply to these types of policies. A helmet is also required to be worn, unless $20,000 of medical payments coverage is in-force. Each rider must also be covered for the same amount. Optional benefits are available and should be strongly considered.

Companies that offer motorcycle coverage in the Wolverine State include:

Aegis Security, Allstate, American Insurance, American Security, Amica, AAA, Auto-Owners, Bristol West, Central Mutual, Cincinnati, Dairyland, Empire, Farmers, Foremost, Frankenmuth, Geico, Grange, Great Northern, Hartford, Hastings mutual, Liberty Mutual, Markel American, Mid-Century, National General, Nationwide, Northland, Progressive, Safeco, Sentry, Safe Auto, State Farm, and Wolverine Mutual.

 

Michigan Assigned Claims Plan (MACP)

MACP was created in 1973 to assist victims injured in accidents involving vehicles when no auto insurance is available. Personal Injury Protection (PIP) benefits may be offered when a motor vehicle is involved. Passengers or drivers of a motorcycle may also be eligible for Coverage. Benefits may include medical treatment, rehabilitation, and rehabilitation.

Claims are reviewed to ensure that all requirements have been satisfied, and the driver and vehicle are eligible. Drivers without coverage must reimburse MACP for claim expenses. If reimbursement is not made, a suspension of a driver's license can occur.

The claims process begins by completing and signing an online application.  Incomplete applications will not be processed.  Copies that verify proof of loss must also be provided. Existing claim statuses can be viewed online. The main office of MACP is located in Livonia.

 

HEAT (Help Eliminate Auto Thefts) Program Discontinued As Of 2019

Vehicle theft and fraud in Michigan remains a major concern, despite some recent progress. Vandalism and theft raise everyone's rate, and your help is needed. The HEAT hotline (1-800-242-HEAT) makes it easy to contact your local police department if you witness vehicle theft or suspect it may take place.  Other suspicious activity includes chop shops, identity theft, and carjacking.

The program was started in 1985 to help increase consumer awareness and participation. The MAIPF (Michigan Automobile Insurance Placement Facility) provides financial backing and administrative assistance.  Free posters, garbage bags, and other items are provided without charge.

According to HEAT, the months with the most stolen vehicles are August, July, September, June, and October. The most stolen vehicles are Honda Accord, Honda Civic, Chevrolet Pick-Up, Dodge Caravan,  Toyota Camry, and Fort Pick-Up.

Rewards were provided for the following tips:

$1,000 for the arrest and warrant for persons involved in vehicle theft, identity theft, or fraudulent activities.

$2,000 for the successful arrest of carjacking suspect.

$10,000 for the arrest and trial of owners of chop shops or theft rings.

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