Are you a resident of Michigan? Get ready to pull out your wallet, because Michigan has the highest auto insurance rates in the country. We’ll help you with your research so you know the ins and outs of getting car insurance in the Wolverine State. Here’s a quick overview.
Best Car Insurance in Michigan:
- Auto-Owners Insurance: Best Overall in Michigan
- Progressive: Cheapest in MI
- Allstate: Best for Multiple Autos
- USAA: Best for Military Discounts
- Best Car Insurance in Michigan:
- Michigan Auto Insurance Overview
- Michigan Auto Insurance Law Explained
- Michigan Traffic Laws You Should Know
- Michigan Auto Insurance Rates per Vehicle
- Auto Insurance Rates by Credit Score
- Insurance for Drivers with a Clean Record in MI
- Insurance Rates with Driving Infractions in Michigan
- Best Auto Insurance Providers in Michigan
- Get the Right Insurance
- Frequently Asked Questions
Michigan Auto Insurance Overview
- The average family living in Michigan has about 2 cars per household.
- Minimum state insurance requirements include bodily injury liability of at least $20,000 per person, bodily injury liability of at least $40,000 per accident and property damage liability coverage of at least $10,000 per incident.
- Drivers with an excellent driving record can expect to pay between about $3,500 and $8,700 for coverage, depending on their provider.
Michigan Auto Insurance Law Explained
Drivers in Michigan are legally required to have car insurance to operate a motor vehicle. However, state requirements only extend to bodily injury liability coverage and property liability coverage.
- Bodily injury liability coverage provides financial compensation for anyone who you injure in an automobile accident. You must have coverage for at least $20,000 per person and $40,000 per accident to drive in Michigan.
- Property damage liability coverage provides compensation for anyone whose automobile, home or other property you damage during an accident. You must have at least $10,000 of property damage liability coverage.
Most auto insurance providers bundle these coverages and sell it as a state minimum coverage package. Keep in mind that state minimum coverage provides no payout for you as the policyholder if you’re involved in an accident.
To get more complete coverage, consider buying these optional add-on coverages:
- 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 minimum insurance, which is often not enough to cover all the costs of an accident.
Not every auto insurance provider offers every type of car insurance. Ask your representative which insurance types your policy provider offers.
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:
- Cellphone 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.
Michigan Auto Insurance Rates per Vehicle
Your driving record and seniority aren’t the only things that influence what you pay each month for car insurance. Your vehicle type can also influence your deductible and your premium. Some of the data that insurance companies consider when they assign your vehicle a premium include:
- Your vehicle’s purchase price: It’ll be more costly to repair or replace an expensive vehicle after an accident. This means you’ll pay more for your insurance.
- Theft rates: You’ll pay more for insurance if you drive a car that’s more likely to be stolen.
- Repair and parts costs: You’ll usually pay less for insurance for common vehicles because there are more mechanics who can fix your car at an affordable rate. Luxury cars or rare imported vehicles will require you to pay more for insurance because parts and labor are more expensive.
- Accident rates and safety ratings: Data suggests that if your car is more likely to be involved in an accident or cause an injury, you’ll pay more for insurance.
One of the most popular vehicles in Michigan is the Lincoln MKS. You’re likely to pay less for insurance because parts are abundant and repair costs are lower than average. If you drive one of Michigan’s favorite luxury vehicles, the Cadillac Escalade ESV, you can expect to pay much more for insurance.
These vehicles require specialized maintenance and repair and are more likely to be stolen than other, more common cars.
Auto Insurance Rates by Credit Score
Your credit score also plays a role in how much you’ll pay for car insurance. You’ll be a lower liability for insurance companies if you have great credit. On the other hand, drivers with a shaky credit history are more of a liability because they’re statistically more likely to file a claim. Let’s take a look at just how important your credit score can be to your insurance expenses.
|Credit Score||Cheapest Provider||Rate for State Minimum Coverage|
|Good 670–739||State Farm||$1,313.00|
As you can see, you can lower what you pay for insurance by taking some time to raise your credit score. Paying your bills on time, reducing your debt and limiting the amount of money you put on your credit card are all steps you can take to reliably improve your score.
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 obeying 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 Company||State Minimum Insurance||Standard Coverage||Full Coverage|
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 Company||At-Fault Accident||Speed Violation||OWI|
Best Auto Insurance Providers in Michigan
Ready to sign up for auto insurance in Michigan? Let’s take a look at some of the best insurance providers.
1. Best Overall: Auto-Owners Insurance
Auto-Owners Insurance took home the top spot on J.D. Power’s 2018 Auto Insurance Survey, which compares policyholders’ customer service and claims satisfaction.
Auto-Owners Insurance also offers some of the most comprehensive auto insurance choices, including an all-inclusive package that covers 10 areas of coverage.
Auto-Owners Insurance also offers a number of ways to save, with discounts for paying your premiums in full and opting out of paper statements. Auto-Owners offers great customer service, a number of policy choices and plenty of discounts — it’s our top choice for Michigan drivers.
2. Cheapest Auto Insurance in Michigan: Progressive
Policies aren’t available for non-military members, though USAA offers some of the lowest rates in Michigan. Progressive is a great second option because it offers coverage for everyone at affordable rates.
Progressive also offers a wide range of additional discounts you can take advantage of to lower your premium even further. You can get a discount for having good grades if you’re a student and you can even get a discount for owning a home — even if your home isn’t insured with Progressive.
You can use Progressive’s Name-Your-Price tool to choose a premium and deductible you can afford if you’re on a limited monthly budget.
3. Best Coverage for Multiple Autos: Allstate
Do you have more than 1 vehicle you want to protect? You need to strike a balance between enhanced coverage and affordable rates. Allstate offers a number of bundled discounts that you can use to save when you insure more than 1 vehicle.
Allstate even offers replacement value coverage, which will give you the actual replacement value of your car if you total your vehicle.
This can be a very important coverage if multiple adults in your home each rely on a vehicle and you can’t afford to take time off to save for repairs.
4. Best for Military Personnel: USAA
USAA offers affordable auto, home and life insurance for members of the armed forces, veterans and their family members.
Our USAA review offered some of the consistently lowest rates for multiple types of coverage at all credit scores.
USAA offers a wide range of insurance options, ranging from state minimum packages to comprehensive and collision coverages. You can save by bundling if you need other types of insurance as well.
Get the Right Insurance
You might be happy with your car insurance, but why not regularly shop around for quotes? You can use these quotes to negotiate a lower rate with your current insurance providers or make the switch to another company. You might be overpaying for your insurance and not even know it.
Frequently Asked Questions
1) Q: Should I have just the minimum amount of car insurance required by my state?
It is always recommended to purchase more than the state minimums when it comes to any type of insurance. The state minimums are set relatively low to keep insurance affordable but in the case of an accident, your minimums can deplete quickly with expensive medical and property damage costs. If the damage or medical bills extend past your minimums you will personally be liable for all additional costs.
2) Q: What kind of discounts are usually available?
The most common discounts available are multi-policy and auto-pay but every company is different. Other discounts that are widely available are loyalty, good student and anti-theft device.
3) Q: Is there any way I can lower my insurance premiums?
Often times you can get a lower premium by maintaining coverage without any gaps in coverage. Discounts are also available that can lower your premium. Bundling your products is another way to lower your car insurance premium. If you feel like you can beat your current premium, get a customized quote here.
*Quotes were obtained using the following profile: base 2015 Toyota Camry, male, 40-years-old. Policies reflect state minimum coverage options. We make every effort to provide the most accurate quotes based on the profile above. Due to the many combined variables involved in insurance quotes, the only way to get an accurate quote is to enter your own information through our partners’ secure websites.