Car Insurance in Michigan

Posted & filed under States.

Michigan Quarter

Michigan Auto Insurance Requirements

Reviewed by Dr. Christine Berry

Michigan has comprehensive auto insurance laws for both private and commercial vehicle owners. Minimum auto insurance coverage requirements in Michigan are mandated by state law and the Michigan Office of Financial and Insurance Services. The following minimum coverage is required on every registered vehicle.

Table showing minimum auto insurance requirements in Michigan

(Source: Michigan OF&IS)

Driving without the mandatory liability insurance in Michigan may be a misdemeanor and  subject to a suspension of your license for at least 30 days up to a $500 fine, and even up to one year in jail.

The Michigan Automobile Insurance Placement Facility (MAIPF) is available to drivers who are unable to obtain required coverage through the voluntary market. More information is available on the MAIPF website.

Factors Influencing Car Insurance Premiums in Michiga

Getting a quote for cheap car insurance in Michigan requires some research and rate comparisons between different insurance companies. Some factors that impact insurance rates in Michigan include:

– Urban areas such as Detroit have astronomically high auto insurance rates, which impacts the rest of Michigan’s overall average
– Vehicle repair costs are generally more expensive in Michigan than elsewhere
– A very high percentage of uninsured drivers compared to national averages
– Auto insurance fraud is high
– Vehicle theft rates are well above national averages

The average auto insurance premium for residents in Michigan is $913; the national average is $785.

Tips for Obtaining Cheap Car Insurance in Michigan

– Discounts are available if you coordinate PIP coverage with other health insurance policies
– If you’re over 65, Michigan law requires that you receive a policy discount if you drive less than 3000 miles per year
– Some insurance companies offer “pay as you drive” car insurance for low mileage drivers in Michigan
– Memberships in some associations or groups might lower your premiumSome companies that sell auto insurance in Michigan reduce your premium if you have certain safety features such as air bags, anti-lock brakes or an alarm system on your vehicle.
-Maintain a good driving record
– Ask about discounts for college graduates and good students
– Bind multiple policies (homeowners, life, auto) with the same provider
– Maintain good credit score
– Create a personal “emergency fund” of up to $1500 and increase deductibles accordingly
– Drop comprehensive and collision insurance on older vehicles that are paid off and are worth less than $1,000

Michigan Statistics

Auto Theft: Michigan has a high vehicle theft rate, but it has been decreasing (as is the case in most states) consistently over the past 10 years. This can be attributed primarily to anti-theft devices being standard on recent model cars, as well as public awareness of the issue:

Table showing auto theft in Michigan from 1990 through 2010Chart illustrating the decline in total cars stolen from 1990 to 2010 in MichiganGraph showing the decline in per capita auto theft in Michigan from 1990 through 2010

(Source: Michigan Automobile Theft Prevention Authority)

Automobile Accidents: The total vehicle miles traveled in Michigan have decreased significantly in recent years, and the vehicle accident fatality rate is among the nation’s lowest.

Table showing number of auto accident deaths in the state of Michigan, 2006 through 2010(Source: National Highway Traffic Safety Administration)

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