Margaret Huntley Last Updated On: July 26, 2023

Your Guide to Car Insurance in Michigan

Michigan state is the heart of the automobile industry with nearly 1000 car manufacturing plants. As a state with a history of creating quality American-made vehicles, it’s only natural that we provide Michigan drivers with vital information on how to save on car insurance. 

This article is a guidebook to all things car insurance in Michigan. From minimum coverage details, to average pricing, to tips on finding cheap policies, this article will tell you everything you need to know about car insurance in the wolverine state. 

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Table of Contents

Minimum Coverage in Michigan

Each of the nation’s 50 states has different regulations regarding the minimum amount of car insurance coverage that drivers are required to carry.  In most other States, minimum coverage only extends to liability coverage, but Michigan requires more. The minimum coverage limits that every Michigan driver must carry are as follows: 
  • Liability Coverage
    • $50 000 per person for Bodily Injury
    • $100 000 per accident for Bodily Injury
    • $10 000 per accident for Property Damage
  • Property Protection Coverage
    • $1 000 000
  • Personal Injury Protection Coverage (PIP)
    • Unlimited
    • Those with Medicaid can go as low as $50 000 per accident.
    • Those with qualifying health care plans can opt out of PIP entirely
Failure to comply with the State-mandated minimum coverage limits is illegal and can result in hefty fines and/or license suspension. Not to mention driving without insurance leaves one extremely vulnerable in the event of an accident. 

How Different Insurance Coverage Options Work in Michigan?

Because every driver is different, so is every automobile insurance policy. Insurers make it a point to adapt to consumers’ individual needs and wants. 

This means that there are a lot of different coverage options available in addition to the minimum coverage requirements. But with such a long list, it can be a bit overwhelming to remember what it all means. 

We thought it would be helpful to give a brief breakdown of how different types of coverage work so that you are better informed when choosing your own Michigan auto insurance policy. And that’s exactly what we did: 

Minimum Coverages:

  • Bodily Injury Liability: extends to expenses incurred by another party’s injuries in a collision.
  • Property Damage Liability: extends to expenses incurred by damages that you caused to another person’s property in a collision that occurs in another state.
  • Property Protection Coverage:  extends to expenses incurred by damages that you caused to another person’s property in a collision that occurs in the state.
  • Personal Injury Protection Coverage: applies to any personal injuries that you experienced as a result of an accident.
    • Note: Michigan is a no-fault state meaning that every driver is responsible for their own medical bills regardless of who is at fault for the accident.

Additional Coverages:

  • Full Coverage Policy: refers to the standard car insurance policy recommended to most individuals. Includes both…
    • Collision Coverage for expenses resulting from a collision, and
    • Comprehensive Coverage for expenses resulting from something other than a collision such as weather or vandalism
  • Limited Property Damage Coverage: can pay for fees resulting from mini-tort law cases that result from an accident you are deemed at fault for.
  • Loan/Lease Payoff: provides additional coverage for those who loan or lease their vehicle so that they are able to pay off their entire loan despite their vehicle’s depreciated value.
  • Rental Car Reimbursement: provides coverage for the expense of a rental vehicle while your damaged one is being repaired or replaced.
  • Roadside Assistance: provides access to additional services while driving such as tow trucks.
  • Uninsured Motorist Bodily Injury Coverage: kicks in if another party does not carry sufficient insurance to cover damages that they should be responsible for.

Now that you know the types of coverage available, you can make an informed decision about what kinds of coverage you’d like to have on your own Michigan car insurance policy.

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Average Cost of Car Insurance in Michigan

We understand that as nice as it would be to buy all of the coverages, sometimes that’s just not within the budget. It’s important to understand how much Michigan car insurance costs so that you can make a decision that takes your budget into consideration. 

Unfortunately, we can’t tell you the price for all car insurance policies in the state. Insurance companies calculate prices based on several variables including:

  • Age 
  • Gender 
  • Driving history 
  • Location 
  • Policy type

While we can’t give you a one-size-fits-all figure, we can give you a few calculated averages to give you a baseline to consider: 

  • Overall average annual cost – $2 639
  • Average for minimum coverage – $1 190   
  • Average price for teenage drivers – $7 178
  • Average price for DUI – $6 160 

These figures can give you an approximation of what you can expect to pay for your car insurance policy. Now, when it comes to these numbers, we have good news and bad news for you. 

The bad news is that car insurance costs more in Michigan than it does in the majority of the other states. A high volume of insurance fraud and uninsured motorists in Michigan increases its average price, as does the larger minimum coverage limits. 

But the good news is that if you keep reading, you’ll get help finding cheap auto insurance in Michigan. 

Low Cost Car Insurance in Michigan

At ConsumerCoverage, we believe every driver has a right to affordable car insurance, which is why we have numerous resources designed to inform and empower our consumers.  Following these tips can save you heaps on car insurance: 
  • Compare Quotes: The insurance market is competitive, and no two companies will have the same price. Get Michigan car insurance quotes from as many companies as you can and compare them to make sure you’re getting the best deal. 
  • Practice Safe Driving: If the danger factor alone is not enough to deter you from breaking traffic laws, know that keeping a clean driving record is the most effective way to save money on car insurance. The safer you drive, the lower your rates. It’s as simple as that. 
  • Enquire About Discounts: You can reduce premiums by qualifying for discounts with your insurer. Some companies offer bundling, alumni, veterans, and other discounts. If you’re not sure what discounts your insurer offers, just ask. 
  • Reduce Mileage: The less that you drive, the lower the risk of insuring you, and the lower the price of premiums. Consider taking public transit to work or other strategies that reduce mileage in general. 
  • Purchase a Safe Vehicle: Another thing that reduces risk is purchasing a sturdy vehicle with lots of safety features. If you’re in the market for a new vehicle, consider one that is known for its safety and you will save on insurance.
  • Ask the Experts: Insurance professionals (like us at ConsumerCoverage) are well versed in the language of insurance. Any questions and queries you have about your Michigan car insurance can be answered by the experts.
Each of these tips ensures that you find the cheapest possible car insurance policy in Michigan. 

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Now you know the ins and outs of car insurance in Michigan and how to find a well-priced policy that suits your individual needs.  

For further information, you can consult ConsumerCoverage’s online resources or reach out directly. We’re always happy to hear from consumers like yourself.

You can also get access to free Michigan auto insurance quotes through us today! 


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