Michigan Car Insurance FAQ - Quick Answers

The annual average car insurance premium in Michigan is $2,476, coming in almost double the national average of $1,311 per year. When you're paying rates this high, it's critical to shop with a trained expert for the lowest costs on coverage.

The cost of car insurance in Michigan is the highest in the country. This is due to several factors listed below:

  • Your driving history
  • How dangerous the roads are for traveling
  • The coverages you select
  • The value of the vehicle you're driving
  • Local weather conditions
  • Past claims reported

In Michigan, the minimum limits of car insurance that are required for each driver are as follows:

  • $50,000 in bodily injury liability per person
  • $100,000 in bodily injury liability per accident
  • $10,000 in property damage liability
  • Personal injury protection based on your specifications

Even though car insurance is a requirement in Michigan, there are still people that don't have proper protection. In Michigan, 20.3% of all drivers on the road are completely without car insurance.

Michigan's reform law primarily affects personal injury protection coverage, providing 4 options when selecting limits. The first option is for $50,000 for drivers enrolled in Medicaid; (2) $250,000; (3) $500,000; and (4) unlimited or no limit. Discuss which option applies to you with a professional for your exact limits.

Yes, like most states, Michigan offers car insurance for your classic vehicles. You'll need to follow the state minimum limit requirements when driving on the road in one of these classics. 

Like most states, Michigan requires all drivers to have the minimum amount of insurance in case of accidents. Michigan is a no-fault state, which means each driver's insurance must cover their own damage following a collision, regardless of who's at fault. 

Do You Know What Your Michigan Car Insurance Covers?

Find the Best Car Insurance in Your City

How does your city measure up to the national average?

National average time spent commuting 26.9 Min

National average car thefts per 1,000 2.3 Year

National average car insurance cost $1,311 Year

CityCommute time (min)Auto thefts / 1,000Annual insurance cost
Adrian20.20.84$2,106
Ann Arbor201.12$1,895
Dearborn20.62.83$2,498
Detroit25.910.4$2,813
Flint22.62.49$2,782
Howell250.93$2,263
Kalamazoo184.28$2,488
Lansing19.63.09$2,314
Marquette11.10.24$1,805
Mount Pleasant14.30.63$1,778
Sterling Heights26.10.72$2,217
Traverse City17.30.44$1,814
Troy25.60.64$2,171

Bodily Injury Requirements in Michigan

In Michigan, you're required to carry the state minimum limits of bodily injury liability at limits of $50,000 per person and $100,000 per accident. This coverage pays for the medical expenses of another driver that becomes injured due to an accident you caused.

Depending on where you obtain your car insurance in Michigan, you may be required to carry $250,000 per person and $500,000 per accident in bodily injury. Talk to your professional adviser to see which applies to you and your situation. 

Property Damage Requirements in Michigan

You'll be required to purchase property damage liability under your auto policy in Michigan. This coverage helps pay for damage to another person's vehicle when you're at fault for the accident.

State law required every driver to maintain the minimum limits of protection. In Michigan, you'll need at least $10,000 in property damage liability insurance to comply with local law.

Personal Injury Protection Requirements in Michigan

Michigan has insurance reform that has changed personal injury protection, or PIP. This new reform has given each person 4 different options, based on their criteria, to choose from. 

Contrary to popular belief, you're not covered for injuries that you sustain from an at-fault accident without PIP insurance. The different options you'll have for PIP are: (1) $50,000 for drivers enrolled in Medicaid; (2) $250,000; (3) $500,000; and (4) unlimited or no limit. You'll need to review which applies to you with a trusted expert.

Uninsured Motorist Coverage in Michigan

In Michigan, you're not required to carry uninsured motorist coverage by law. However, if you want to be fully protected, uninsured motorist coverage will help pay for your injury or damage due to an accident with an uninsured driver.

Unfortunately, just because car insurance is mandatory in Michigan doesn't mean everyone follows the law. There is still 20.3% of the driving population in Michigan without auto coverage, putting you at risk.


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Optional Car Coverage in Michigan

If you're searching for full coverage in Michigan, you'll need more than the minimum liability limits. Collision insurance and comprehensive insurance will help pay for damage to your vehicle and can be purchased for an additional premium.

Another coverage is rental car insurance that reimburses you when you need a replacement vehicle due to a covered loss. Roadside assistance can also help when you're stranded and need a tire changed or a tow. 

Car Insurance Discounts to Consider in Michigan

When it comes to discounts on car insurance in Michigan, there are several ways to save a buck. One of the easiest is to have more than one policy with the same carrier to obtain savings of 30% or more on car insurance.

If you're part of a teachers union or government agency, you'll qualify for an association discount. And if you're keen on being loyal to the same insurance company for a number of years, you can get a loyalty discount. 

How to File a Car Insurance Claim in Michigan

When filing a car insurance claim, it can be difficult to remember what to do in the heat of the moment. Check out these easy steps for reporting a car insurance claim in Michigan

First, get to a safe spot and ensure that medical attention is sought if necessary. Next, call your independent insurance agent and report the accident. Third, obtain a claim number for your agent and a rental car if needed. Last, schedule a meeting with your adjuster to go over the claim and receive payment.