Car Insurance in Michigan

Contributor, Benzinga

Want to save money on your car insurance? Find and compare free custom quotes here.

No matter what state you live in, car insurance is a necessity. If you put laws aside, driving without insurance is taking quite a risk — not only for you but other drivers on the road as well. The state you live in also will determine the minimum amount you are required to have in order to comply with laws. Knowing your minimum requirements will help you find the best car insurance in Michigan.

Driving without insurance is illegal, and perpetrators will face severe consequences. For purposes of this article, as a resident of Michigan, you must adhere to state laws that mandate drivers carry at the very least the minimum amount that follows the 50/100/10 liability insurance, personal injury protection and property protection guidelines. You want to take your time and thoroughly look at your options when it comes to car insurance in Michigan.   

Key Points

  • Michigan is one of the most expensive states in the country for car insurance.
  • On average, the Michigan driver pays roughly $2,309 annually for full coverage.
  • The minimum state requirements for Michigan auto insurance are $50,000/$100,000/$10,000, or 50/100/10, which means your limits for bodily injury are $50,000 per person, $100,000 per incident and $10,000 for property damage

Best Car Insurance in Michigan

Compare Quotes securely through Allstate’s website
SR-22 Insurance
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1 Minute Review

Allstate is one of the largest insurance companies in the country, and it’s been around for 90 years. That means it’s secure and able to pay your car insurance claims. That doesn’t mean it’s stodgy, though. It has introduced innovations like Drivewise, which allows you to save on your insurance based on your driving habits, and Milewise, which is pay-per-mile insurance. 

You can purchase insurance online or through an Allstate agent. Allstate offers several options for discounts that can bring down your policy costs significantly. It also offers several types of insurance so you can have all or most of your policies with 1 insurer. 

Overall, Allstate is a good choice and worth comparing with other insurers to see if it’s right for you. It’s available in all 50 states and has an A+ rating from AM Best. 

Best For
  • Personalized service
  • Pay-per-mile insurance from an established company
  • Buying multiple types of insurance
Pros
  • Extensive agent network
  • Easy sign-up process
  • Many customer service options
Cons
  • Drivewise and Milewise aren’t available in all states
Get a Quote securely through The AARP Auto Insurance Program from The Hartford’s website
SR-22 Insurance
Yes
N/A
1 Minute Review

The AARP Auto Insurance Program from The Hartford is designed exclusively for AARP members who are at least 50 years old. Some of the unique features of the program can help you save money on your policy over time, especially if you have and maintain a clean driving record.

Other stand-out features include new car replacement (rather than the depreciated value), reimbursements for expenses incurred if you get injured in an accident and lifetime repairs guarantees. 

The AARP Auto Insurance from The Hartford is rated #1 by J.D. Power and Associates for customer satisfaction in handling auto insurance claims.

Best For
  • Safe drivers who are looking to save money
  • AARP members at least 50 years old
Pros
  • Offers unique coverages and benefits that can be added to a standard auto insurance policy
  • Allows drivers to save for safe driving
  • Rated #1 by J.D. Power for customer satisfaction in auto claims handling
Cons
  • Only available for AARP members
  • Must be at least 50 years old to qualify
SR-22 Insurance
Yes
N/A
1 Minute Review

Progressive auto insurance is among the first of the larger insurers to actively embrace usage-based insurance via electronic monitoring of driving habits. Often a refuge for younger drivers and drivers who have been refused insurance elsewhere, progressive markets and supports its insurance products through its website and a network of independent agents.

Best For
  • Young and less-experienced drivers
  • Drivers with consistently good driving habits
  • Rates for good drivers
  • RV drivers
Pros
  • More welcoming to less-experienced drivers
  • Great website and mobile app functionality
  • Driving based discounts can be generous
Cons
  • Relatively smaller agent network may leave some without a local agent
  • Rates can increase at renewal based on driving data from Progressive’s Snapshot.
compare quotes securely through AAA’s website
Best For
Roadside assistance
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1 Minute Review

The American Automobile Association (AAA) is a federation of auto clubs, and it offers a wide range of insurance options, including car insurance. It is the most trusted and familiar name in auto-related services. The company has come a long way since its founding, but the mission remains the same. 

Safe and efficient transportation is exactly what AAA commits to per the company’s core statement. AAA is probably best known for its roadside assistance, but the company offers a variety of insurance coverage and memberships as well. AAA strives to make your life easier with its insurance coverage for you and your family. Your safety and security is AAA’s priority.

 

Best For
  • AAA Members
  • Roadside Assistance
  • Extra insurance perks
  • Anyone looking for unique insurance carriers
Pros
  • Serves all states
  • Mobile app
  • Emergency roadside assistance
Cons
  • Have to be an AAA member
  • Policies not available in every area

What Is Michigan No-Fault Auto Insurance Law?

Michigan is 1 of 12 no-fault states in the U.S. In a no-fault state, Drivers in no-fault states generally pay more for their insurance coverage but, fortunately, get more protection as no-fault insurance prevents

Under the no-fault law, Michigan drivers are required have a minimum of no-fault insurance coverage, which includes personal injury protection (PIP), property protection (PPI) and residual liability insurance, or bodily injury and property damage (BI/PD.)

What Type of Car Insurance Do You Need in Michigan?

Personal Injury Protection

This coverage pays for medical expenses and lost wages regardless of who is to blame for the accident. The new Michigan law gives customers the ability to decide between 6 options for personal injury protection (PIP) medical coverage. The default policy doesn’t have a maximum limit. Insurance companies will pay any dependents a death benefit if you or a loved one is killed in an accident.

Property Protection Insurance

This coverage is for any property damages incurred after an accident. Property protection insurance (PPI) will pay up to a certain amount for repairs. In Michigan that adds up to $1 million dollars. Be mindful that coverage applies to stationary objects like fences or parked cars. Damages that occur outside of Michigan fall under liability coverage.

Bodily Injury and Property Damage Insurance

This provides coverage for other people and property who may be injured in an accident with an insured party. The minimum coverage required here is $10,000 in Michigan.

Other Types of Coverage You May Need

  • Comprehensive coverage helps protect you against non-accident related damage to your vehicle. If you suffer damage from a burglary, natural disaster or animal, for example, comprehensive coverage helps you repair your vehicle.
  • Collision coverage helps you cover the costs of any repairs after an accident that involves another vehicle. Your collision coverage helps you fund a repair or pay for parts that need to be replaced after your accident.
  • Uninsured or underinsured motorist coverage covers you financially if you’re involved in an accident with a driver who doesn’t have auto insurance. It can also help cover the difference in bills if the driver is carrying only state-required mini

Michigan Car Insurance Changes

In response to Michigan’s consistently high auto insurance rates, law insurance reform was passed in July of 2020. This reform made a few significant changes.

  • Drivers are able to choose a level of PIP that fits both their needs and budget
  • Every insurance company statewide was directed to reduce MI medical premiums (average) for car insurance for a period of 8 years
  • A fee schedule was introduced intended to keep costs that medical providers can charge insurers down
  • Several consumer protections were added, including elimination of non-driving factors in premium costs (like gender, credit score and more), prior approval for auto rates and increased fines and penalties for insurers who take advantage of Michigan residents
  • An insurance industry fraud investigation was formed

Michigan Traffic Laws You Should Know

Ready to lower your car insurance in Michigan? You also need to make sure that you follow the rules of the road. However, if you’ve recently arrived from another state, you might not be aware that you’re violating local traffic laws. Make sure you pay close attention to these common driving infractions:

  • ellphone use: Michigan doesn’t have a particular law banning cellphone calls for adults. Some Michigan cities do, however, ban cellphone use while driving. Under Kelsey’s Law, drivers under the age of 17 cannot use a cellphone in any capacity while on the road. The only exception is to use a voice-operated system that’s integrated into the vehicle. If ticketed, teens could receive up to $295 in fines and costs. Texting while driving is illegal in all capacities for all drivers, regardless of age. You may face a $100 fine for your first offense if you’re caught sending or reading a text.
  • Turn signal use: You’re required to use your turn signal when changing lanes on the road in Michigan — not just when you’re making a right or left turn. Your insurance company might find you partially or fully at fault for an accident if you fail to signal before switching lanes.
  • Driving while intoxicated: Driving under the influence of alcohol or drugs is called operating while intoxicated (OWI). The legal limit for blood-alcohol concentration is 0.08, and increased penalties are possible for drivers with a BAC of 0.17 or above.
  • Flashing yellow turn signal: You may run into a flashing yellow left-turn arrow if you drive in Michigan. The flashing yellow arrow indicates that you may make a left turn but you should proceed with caution. Oncoming traffic doesn’t usually have a red light at these intersections, so make sure you leave yourself plenty of room to make your turn.

Best Car Insurance in MI

Michigan is one of the most expensive states in the country for car insurance. On average, the Michigan driver pays roughly $2,309 annually for full coverage. Needless to say, drivers should consider several aspects of insurance. Many factors contribute to how much you spend on car insurance in Michigan. 

Your credit, driving history, where you live, type of car you drive, how many miles you drive, driving experience, gender, age, homeownership, recent claim trends and geographic trends like laws or weather in an area all affect car insurance rates.

SR-22 Insurance
Yes
Online Purchase
No
Pros
  • Complete line of insurance, banking, and investment services
  • Easy online forms to quote and bind policies
  • Top-rated customer satisfaction
Cons
  • Very few physical locations
  • Only available to select groups, generally tied to military service and the relatives of members

Cheapest Car Insurance in Michigan: USAA

Among the best car insurance companies in Michigan, USAA has the lowest annual auto premium. The only catch is that this insurance is offered to current or former military members and immediate family members. This makes USAA ineligible for official ranking with J.D. Power. Benzinga would be remiss not to mention how the company consistently receives high customer satisfaction rates while it offers great rates, numerous ways to save and has a solid presence both mobile and online.

Pros:

  • Complete line of insurance, banking and investment services
  • Easy online forms to quote and bind policies
  • High customer satisfaction ratings

Cons:

  •  Very few physical locations
  • Only available to select groups, mostly military service members and their families

A.M. Best rating: A++

Moody’s rating: Aa1

SR-22 Insurance
Yes
Online Purchase
No

Best Classic Car Insurance Michigan: State Farm

Benzinga reviewed State Farm Insurance as one of the most affordable car insurance providers because of its bundling options. State Farm is also known for its generous discount options that enable you to save money. Classic cars qualify for State Farm coverage as long as supporting policies are with them as well.

Pros:

  • Provides easy life insurance quotes and helpful information
  • Has a network of over 18,000 agents nationwide to provide answers to questions
  • Sizable discounts on auto policies for those who also purchase life insurance

Con:

  • Premiums may be higher than competitors, depending on individual ratings

A.M. Best rating: A++

Moody’s rating: Aa1

Online Purchase
Yes
Pros
  • Up to $35,000 in coverage in primary and secondary liability insurance
  • 24 hour customer service
  • Usually cheaper than rental car coverage at the rental desk
  • Online quotes and claims
Cons
  • Must purchase ahead of time

Best for Rental Car Coverage: Bonzah by Pablow

Bonzah is one of the most unique platforms for nonowners insurance, which is designed for frequent travelers who desire better and more affordable rental car coverage. It is the only online provider of on-demand primary and supplemental coverage for nonowners. You have the ability to use Bonzah whenever you need to cover any gaps left by other insurance carriers when you are driving a vehicle you don’t own.

 Pros:  

  • Up to $35,000 in coverage in primary and secondary liability insurance
  • 24-hour customer service
  • Online quotes and claims

Con:

  • Must purchase ahead of time

A.M. Best rating: A+

Moody’s rating: A++

Best For
Roadside assistance
Pros
  • Serves all states
  • Mobile app
  • Emergency roadside assistance
Cons
  • Have to be an AAA member
  • Policies not available in every area

Best Nationwide: AAA

A top choice for Michigan drivers is AAA. It is affordable and offers a plethora of benefits — especially if you have more than one driver to insure. Online quotes average about $1,101.04 for a 1-year policy with discounts — especially if you have many drivers, anti-theft and safety devices, have successfully completed a defensive driving course and are a good student. Car and accident forgiveness are also available options through AAA.

Pros:

  • Serves all states
  • Mobile app accessibility
  • Emergency roadside assistance

Con:

  • Policies are not available in every area

A.M. Best rating: A+

Moody’s rating: Aa

SR-22 Insurance
Yes
Online Purchase
Yes
Pros
  • Free to use
  • Much faster than comparing policies on your own
  • Saves an average of $961 per year
Cons
  • No customer service number, but you can email or chat or ask one of Gabi’s insurance agents to contact you by phone or text

Best for Switching Coverage: Gabi

The best part about Gabi is it’s a free, online insurance broker and comparison tool. Insurtech provides you with the most affordable coverage options and shops around for the best auto and home rates available. This gives you the ability to compare coverage costs from more than one carrier at the same time. For anyone looking to switch coverage with ease, get a free quote through Gabi.

Pros:

  • Free to use
  • Faster than comparing policies by your own means
  • Saves roughly $961 per year

Con:

  • No customer service number — only email and chat option to ask for Gabi’s insurance agent to contact you by phone

A.M. Best rating: A++

Moody’s rating: Aa

Insurance for Drivers with a Clean Record in MI

Want cheap auto insurance? You need to maintain a solid, safe driving history. Follow the speed limit, drive defensively and obey local laws to reduce your chances of getting into an accident. A safe, clean record also drastically reduces your premiums.

Let’s take a look at how much you can expect to pay for your insurance in Michigan with a clean record. We’ve compared state minimum insurance, standards coverage (liability plus collision coverage) and full coverage (liability, comprehensive and collision coverage). 

Insurance CompanyState Minimum InsuranceStandard CoverageFull Coverage
USAA$652$796$854
Travelers$735$862$1,002
State Farm$698$745$830
Progressive$895$934$1,024
Nationwide$841$960$1,123

Insurance Rates with Driving Infractions in Michigan

You’ll pay more for your insurance if you do have infractions on your driving record. Some of the most common driving infractions include:

  • At-fault accidents: An accident you’re involved in that you fully or partially contributed to.
  • Speed violations: Driving above (or sometimes, far below) the posted speed limit.
  • DUI: Driving under the influence of drugs or alcohol, a DUI is also called an OWI in Michigan.

Let’s take a look at how some of these infractions can affect what you pay for insurance. 

Insurance CompanyAt-Fault Accident Speed Violation OWI
USAA$2,323$1,592$6,651
Travelers$2,235$1,411$6,829
State Farm$2,170$1,474$6,670
Progressive$2,299$1,506$6,072
Nationwide$2,699$1,722$6,956

In Summary: Michigan Car Insurance

You want to ensure you get the most out of your auto insurance. In doing so, seek an agency that recognizes customers for buying services and not just insurance. Many insurance rates are individualized, so be sure to browse around. Talk to an agent to get a better feel and understanding of what you are agreeing to when exploring coverage options. You might experience one company that treats you better than another in regard to prices. 

Don’t settle for the first available agency, but rather keep an open mind because you never know what you might find. Insurance agencies ultimately wait for a claim to be filed and once that happens you want to know that your policy is structured appropriately to protect you financially.

Frequently Asked Questions

Q

Q. What is Michigan no-fault insurance?

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Q. What is Michigan no-fault insurance?
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No-fault insurance is mandatory for anyone who drives regularly in Michigan. This eliminates the need to sue the at-fault driver for medical costs and lost wages if you are involved in an accident. Your personal insurance will cover the costs even if you are at fault.

 

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Q

Does Michigan no-fault insurance cover rental cars?

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Does Michigan no-fault insurance cover rental cars?
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Unfortunately, Michigan no-fault benefits exclude coverage for property damage or theft of a rental car. Anyone who has intentions of renting a car for more than 30 days is then considered an owner of the vehicle. For this, the no-fault insurance does not apply.

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Q

Can you get temporary car insurance in Michigan?

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Can you get temporary car insurance in Michigan?
asked
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You are not legally able to purchase temporary car insurance in Michigan any longer, but there are some agencies that have promoted a 7-day insurance policy across the state. This is why researching your car insurance policy is so important. 

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