This handy page summarizes the latest rates, laws, stats and other useful info pertaining to car insurance in the state of Michigan. Keeping track of just a few important details goes a long way. Here’s how you can customize a Michigan auto insurance coverage package that suits your needs at the lowest possible rates.
Michigan Minimum Liability Coverage
The state of Michigan requires that drivers purchase a minimum per-vehicle insurance coverage of 20/40/10. That means $20,000 in Personal Injury Protection, $40,000 in per-accident protection, and $10,000 coverage against property damage (fences, lawns, other cars, etc.).
Unfortunately, state minimum coverage amounts are often not enough to pay for the actual cost of most accidents. Experts recommend at least 100/300 coverage for drivers in every state. They also recommend Uninsured Motorist Insurance (UMI) for Michigan drivers, as roughly nineteen percent (19%) of vehicles on Michigan roads are uninsured. Michigan ranks seventh among U.S. states in percentage of uninsured vehicles on the road.
Penalties for Driving Without Insurance in Michigan
The standard penalty for getting caught driving an uninsured vehicle in Michigan is a fine of up to five hundred dollars and/or up to one year in jail. The amount of the fine and the length of the jail term are based on whether or not the driver has prior traffic-related convictions, and whether or not an accident has occurred.
Auto Insurance Rates in Michigan
Michigan’s annual car insurance premium was roughly $2,000 in May of 2013, quite higher than the national average of $1,670. According to experts at Top50States.com, the relatively high auto insurance rates in Michigan are partly due to the tough economy that resulted from the collapse of the auto industry, as well as high crime rates, a higher than average percentage of uninsured vehicles, and the effects of certain state laws.
For instance, Michigan is a “no-fault” state. This means that car insurance purchased for vehicles in Michigan will cover deaths, injuries and property damage regardless of who is at fault. Under Michigan’s no-fault law, premiums are higher. Details regarding no-fault laws vary from state to state. Uniquely, Michigan’s no-fault auto insurance system allows auto accident victims unlimited, lifetime medical benefits for treatment of their injuries. Whatever is not covered by insurance is paid by the Michigan Catastrophic Claims Association, a nonprofit created by state law.
Low Cost Car Insurance Programs in Michigan
Auto insurance companies in Michigan often advertise special discounts as behavioral incentives. The Accident-Free Discount is for avoiding accidents for three years. The Good Driver Discount is for avoiding moving violations. The Good Student Discount rewards high grades. The Multiple Automobiles Discount is for owners of more than one vehicle. The Multiple Policy Discount benefits holders of more than one insurance policy. And so on. Ask several agents for full details on discount car insurance programs in the state of Michigan. Then compare costs.
Obtaining Auto Insurance Quotes in Michigan
According to recent customer satisfaction ratings, Michigan’s most favored auto insurance providers are Geico, 21st Century, and Auto Owners Insurance. Still, some local drivers opt for smaller-sized regional carriers like Farm Bureau Insurance or Hastings Mutual. In any case, car insurance is mandatory in Michigan. Fortunately, the state features many dozen insurance companies that provide auto accident coverage at locally competitive rates. Call around and compare free online quotes. Remember to inquire about their discounts. Above all, read consumer reviews.