Tonya Sisler has a Bachelor’s Degree from the University of South Carolina in Journalism and has worked for 15+ years in management. She has also completed a proofreading certification and is currently a professional writer.

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Brad Larson has been in the insurance industry for more than a dozen years. He started out as a claims adjuster for a national carrier. He has since switched to the agency side of the business. Brad is licensed in all P&C lines.

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Reviewed by Brad Larsen
Licensed Auto Insurance Agent

UPDATED: Jul 6, 2020

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In a nutshell...

  • Michigan requires all auto insurers to provide unlimited, lifetime benefits for all medical expenses of victims injured in a car accident
  • Michigan car insurance laws operate under the no-fault car insurance system
  • All Michigan car insurance companies offer several types of auto insurance including GAP, collision and comprehensive coverage

Michigan car insurance operates under no-fault car insurance laws, however, do not try to convince Michigan drivers that no-fault auto insurance means lower car insurance premiums.

Michigan drivers pay over 40 percent more than the national average car insurance premium.

Only one other state ranks higher in terms of average car insurance rates than Michigan and such high premiums certainly have more to do with state laws than the driving habits of residents in this Northeastern State

Enter your zip code above to get FREE car insurance quotes today!

Why is Michigan car insurance so high?

Statistics certainly do not show a greater risk of an accident by Michigan drivers than many other states and with the exception of Detroit there are few areas with any congestion comparable to New York, Miami, Los Angeles or other more populated areas so why is car insurance in Michigan so high?

Michigan car insurance rates are directly a result of state laws which define a car insurance company’s responsibility for medical benefit payments to car accident victims.

Most states cap a car insurance company’s liability at the policy limit, however, Michigan law essentially exposes car insurance companies to unlimited liability for medical expenses regardless of how much coverage a policyholder has.

Even though a state fund kicks in after $460,000 this type of liability exposure beyond policy limits is unique only to Michigan and drivers pay seriously high premiums due to this law.

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Michigan Car Insurance Requirements

Michigan car insurance laws operate under the no-fault car insurance system and all drivers are required to carry liability insurance with minimum levels of coverage.

Minimum auto insurance coverage and rates vary from state to state. Compare state to state below:

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The current car insurance requirements in Michigan are at least:

  • $20,000 liability coverage per person per accident
  • $40,000 liability insurance for all persons per accident
  • $10,000 in property damage coverage
  • PIP (Personal Injury Protection coverage)

Even with no-fault car insurance laws these limits are relatively low and will rarely cover any kind of accident involving a total vehicle loss.

Michigan drivers should always consider expanded levels of coverage as well as other types of car insurance if they want full protection behind the wheel.

Your average monthly car insurance rates by coverage may be cheaper than expected for additional coverage like comprehensive. Review rates for car insurance coverage below:

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How does ZIP code affect auto insurance? Factors like traffic, crime, and claim frequency in your area all matter. Find out how your ZIP code compares against other zips in MI.

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Some states have banned discrimination based on gender for car insurance rates, and this is one of those few states. As you can see the rate for males and females is the same, but the rate still varies with age.

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Six major factors affect auto insurance rates in MI. Which car insurance factors will affect your rates the most? Find out below:

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Now let’s see who is the cheapest car insurance company in Michigan.

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Who are the largest car insurance companies in Michigan?

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All Michigan car insurance companies offer several types of auto insurance including GAP, collision and comprehensive coverage with limits well exceeding $100,000 for only a small increase from state minimum requirements.

Michigan Car Insurance Quotes

In a state like Michigan where car insurance rates are extremely high, you need to shop around.

Most Michigan residents opt to start a car insurance comparison search online where they can compare rates, learn about the types of coverage and even see what car insurance discounts they may qualify for.

Auto insurance comparison online is fairly easy to do and can save you time and money now and anytime you buy a new car.

Enter your zip code below to get FREE car insurance quotes today!

References:

  1. https://www.esurance.com/insurance/car/coverage
  2. https://www.nationwide.com/auto-liability-insurance.jsp
  3. https://www.allstate.com/tools-and-resources/car-insurance/gap-insurance-coverage.aspx
  4. https://www.esurance.com/info/car/myth-comprehensive-covers-everything