What Car Insurance Coverage Do I Need?

Decide much liability coverage is enough for similar type of drivers.

Michigan Car Insurance

For years, Michigan is known as the best state with comprehensive no-fault coverage strategies. Indeed, Michigan has the highest car insurance rates in the country. If you search for Detroit, Michigan you will come across an annual rate that is as high as 7,500 USD! Even if you are a driver with amazing driving records, you must pay thousands. Every year, people from the suburbs of Detroit spend thousands of dollars. Luckily, rates are considerably low in the rural regions. But yes, you should search for the best car insurance Michigan provider. There are too many options to pick from. Luckily, you have plenty of cheap insurance service providers too!

Car insurance premiums in Michigan

On an average, you should spend around 2,484 USD every year on car insurance. The final figure depends on your car insurance provider. Auto insurance service providers in Michigan use several factors to determine the premiums. This includes the following factors:

  • The frequency of claims in your city
  • The severity of claims in your city
  • Your driving history
  • Your credit score
  • Variables imposed by the car insurance company
  • The model and age of your car

Due to these six factors, your car insurance price can vary by few hundreds or even thousands. Always remember, the final cost depends on your insurance company. The most expensive company in Michigan chars 5,825 USD. This is four times more expensive than the cheapest service provider. If you shop around and compare many services, you will be able to save as much as 4500 USD. To know more about car insurance Michigan in your city, use its ZIP code. There are many tools and services to help you with cheapest auto insurance rates. If you want a customized figure, pick from 3 different coverage levels and 6 age-groups.

Michigan Car Insurance Rates by ZIP Code & City
Enter ZIP for average rate. Then enter Age, Gender and Coverage Level for customized rate.
Wrong zip code

Car insurance Requirements in Michigan

Just like every other state in the country, Michigan has few requirements. You must have a minimum bodily injury liability of 20,000 or 40,000 USD. And, your minimum property damage liability should be 10,000 USD. In Michigan, your property protection coverage can be as high as 1 million USD. On the other hand, personal injury protection comes into the picture only when you lose a job or need medical support. Everything about auto insurance in Michigan is planned. That is why you should read about the state and its requirements.

Currently, Michigan has set minimum liability limits of 20-40-10. You must buy policies to fulfill this requirement. Additionally, you should have property protection insurance alias PPI. The state has mandated the need for PPI. If you want to drive in Michigan, you should buy auto insurance based on these laws. Luckily, the state protects drivers from damages caused by poles, buildings, legally parked vehicles and fences too. As mentioned previously, you will receive up to 1 million USD. All property protection insurance claims should be on unintentional damages. For example, the insurance company will not pay you, when you run into your own vehicles or fence.

Michigan delights drivers with unlimited lifetime protection against auto accidents. All your medical expenses will be covered. It is true, bodily liability insurance is not triggered automatically. That is why you should buy additional medical insurance. Here is a simple exception to this situation:

With bodily injury coverage, insurance companies have limits. If you have reached this limit and are sued, you must pay from your pocket. If you meet with an accident and the other family sues you 200,000 USD for the suffering and pain – what will you do? When the insurance company pays only 50,000 USD, you must pay the remaining amount from your pocket.

You can increase your auto insurance Michigan plan to full coverage with just 472 USD per year or 39 USD a month. By improving your insurance, you will gain more coverage. In the long run, your accidents will be less painful (mentally and on your wallet).

Most & Least Expensive ZIP Codes in Michigan
Highest Rate:
Lowest Rate:

When you are in Michigan, there are few recommended auto insurance plans. People with old cars and fewer assets may look for cheap car insurance policies. Always remember, cheap insurance will not save you! After a minor accident, you may spend a lot of money from your pocket. That is why you should choose your car insurance plan wisely.

Here are few insurance plans to help you.

Liability

There are three different situations where liability coverage becomes handy:

  • When your car is more than 100,000 USD, you should choose a coverage of 250-500-100.
  • When your car costs between 50,000 and 100,000 USD, you must have a coverage of 100-300-100.
  • When your car costs less than 50,000 USD, you must have at a coverage of 50-100-50.

People who finance or lease their vehicles should choose a coverage of 100-300-100.

Collision & Comprehensive

If your car cannot be replaced easily or is brand new, you need collision coverage. That is because the state’s no-fault PPI coverage is only for parked vehicles. To be more precise, your vehicle has to be parked properly. And, you can sue only drivers who are at fault. You can sue only 1000 USD for most damages. The cost to buy collision coverage in Michigan is only 369 USD per year. But, you may end up saving lots of money after an accident. In Michigan, you have three different types of collision coverage to pick from:

  • Standard – pays for all damages. Doesn’t depend on who was at fault. Deductibles are always present.
  • Board Form – pays for all damages. Doesn’t depend on who was at fault. Deductibles are not present.
  • Limited – pays only if you are not at fault. Deductibles may or may not be present.

Comprehensive coverage helps when your car is damaged from the flood, animal strikes, fire, vandalism or falling objects. If your car is stolen, comprehensive coverage will help. The cost to buy comprehensive insurance in Michigan is only 143 USD. Here are two situations to buy comprehensive coverage:

  • If your car is more than 10 years old, but quite expensive. All cars worth 3000 USD or more will need comprehensive coverage.
  • If your car is less than a decade old, you need both comprehensive and collision coverage.

Medical Coverage

Medical coverage will help you handle funeral expenditures and medical bills. It is for both passengers and drivers who are covered. The insurance policy comes into the act after an accident. It doesn’t depend on who caused the accident. The policy covers up to 25,000 USD without any questions. But, MedPay is not compulsory in Michigan. It is optional and doesn’t have any deductibles. MedPay handles the following:

  • Pays for all medical expenditures when your healthcare limits are reached.
  • Passenger and driver’s medical expenses are covered.
  • If you are an insured driver who hits someone walking or biking, you will receive additional coverage.

Laws in Michigan

Residual Coverage

In Michigan, you must have a bodily and a property damage liability of 20-40-10. What is covered by this policy differs from other states? This coverage is known as “Residual Coverage”. The no-fault law protects all insured drivers. But yes, you can be sued in the following cases:

  • A person was killed or permanently disfigured after an accident.
  • A non-resident was involved in the accident.
  • The accident happened in a different state.

When damages exceed your limits, you must be prepared to pay the differences.

Mini-tort Law

This is another situation where a person can be sued or sue another. If you are responsible for 50% of the accident, you may have to spend at most 1,000 USD from your pocket. This comes into the act, only if the vehicle was not covered completely.

Auto Reform

For several years, legislators have tried to combine Michigan’s medical benefits with no-fault coverage. This has an impact on the state’s auto insurance rates. Yet, the reform has not happened! It may happen in the next few years.

Eligibility Points

Car insurance companies in Michigan use points to judge drivers. With points, they decide if a policy can be sold to you or not! That is why you should drive safely. Try to maintain less than 7 points on your driving record. Traffic violations, speeding, and other moving mistakes can affect your insurance.

Car insurance for cities in Michigan

Enter your zip code to get insurance quotes in your area

Wrong zip code
Travelers Erie Insurance MetLife Farmers Insurance
Get Free Quotes