Michigan is one of the few U.S. states with a no-fault auto insurance law. You, as the policyholder, waive your right to sue someone in an accident. However, there are exceptions to the no-fault rule, such as severe injury and death.
All no-fault insurance policies issued in Michigan have three parts:
- Personal Injury Protection (PIP.)
- Property Protection (PPI.)
- Residual Body Injury and Property Damage Liability (BI/PD.)
Michigan is unique in that PIP coverage includes unlimited benefits for medical care and rehabilitation services. So if you were grievously injured in an accident and required a lifetime of treatment, your insurance would pay for it.
It also includes up to three years of wage benefits if you are unable to work or perish in an accident. A daily stipend covers the costs for jobs you would be unable to complete, such as yard work or cleaning. This is one of the primary reasons why Michigan auto insurance is the most expensive in the nation.
PPI covers up to $1 million in property damage done in the state. This includes damage you inflict on parked cars in some circumstances.
BI/PD covers legal fees and damages (up to the policy limit) if you are sued or have an accident outside the state. The state's minimum requirements are as follows, also known as 20/40/10:
- $20,000 per person hurt or killed in an accident.
- $40,000 for each accident, if several people are hurt or killed.
- $10,000 for property damage done in another state.
Sample of Annual Michigan Auto Insurance Rates
Drummond Township Auto Insurance
Drummond Township is situated on the eastern edge of Michigan's Upper Peninsula across from the Canadian border. It is surrounded by Lake Huron. The town has a population of more than 1,000 people.
East Johnswood Road cuts across Drummond Island, and becomes Michigan State Route 134 as it crosses through the Upper Peninsula. South Townline Road runs past the Drummond Island Airport. East Tourist Road runs along the northern shore of the island.
Detroit Auto Insurance
Detroit is the largest city in Michigan with a population of more than 677,000 people. The "Motor City," or "Motown," as Detroit is known, is considered the automobile capital of the world. General Motors Company (GM) is headquartered in downtown Detroit, while Ford Motor Company and Chrysler are based in the suburbs.
From Detroit, Interstate 96 passes through Lansing on the way toward Grand Rapids. Interstate 94 connects Detroit with Ann Arbor and Chicago to the west, and Port Huron to the north. Interstate 75 runs north toward Mackinac Island in Michigan's Upper Peninsula, and south through Toledo and Cincinnati on the way into Atlanta. Woodward Avenue cuts through downtown Detroit.
Glen Arbor Auto Insurance
Glen Arbor lies on the shores of Lake Michigan in the northwestern corner of the state, not too far from Traverse City. The town is surrounded by Sleeping Bear Dunes National Lakeshore, making it a popular tourism destination. Glen Arbor has a population of fewer than 800 people.
In Glen Arbor, Michigan State Route 109 crosses through Sleeping Bear Dunes National Lakeshore. Michigan State Route 22 heads north to Northport Bay and south past Glen Lake. South Lake Street offers a direct route to the marina at Glen Lake.
Grand Rapids Auto Insurance
Grand Rapids is Michigan's second-largest city with a population of more than 195,000 people. Grand Rapids is known as the "Furniture City," and has become a hub for furniture manufacturers. The late President Gerald R. Ford grew up in Grand Rapids.
From Grand Rapids, Interstate 96 runs east into Lansing, and west toward Grand Haven. Interstate 196 connects Grand Rapids with Holland. U.S. Route 131 runs north to Petoskey, and south to Kalamazoo.
Battle Creek Auto Insurance
Battle Creek has a population of more than 51,000 people. Known as "Cereal City," Battle Creek is home to the Kellogg Company, the maker of popular cereal brands like Froot Loops, Rice Krispies, Frosted Flakes, Corn Flakes, and Special K. Kellogg also produces Eggo waffles and Pringles potato chips.
From Battle Creek, Interstate 94 runs west toward Chicago, and east past Ann Arbor on the way to Detroit. Just outside of town, Interstate 69 connects Battle Creek with Lansing to the north, where it veers east toward Flint. Michigan State Route 66 runs north toward the outskirts of Traverse City.
Sterling Heights Auto Insurance
Sterling Heights is a Detroit suburb. It is Michigan's fourth-largest city with a population of more than 132,000 people. Sterling Heights is considered one of the safety places to live in Michigan.
Just outside of town, Interstate 75 runs south into Detroit, and north toward Flint. Interstate 94 also runs south into Detroit, and continues west onto Chicago. Michigan State Route 53 runs south toward Detroit's Belle Isle, and north to Port Austin at the top of the Michigan thumb. Michigan State Route 59 runs west through Pontiac.
Lansing Auto Insurance
Lansing is Michigan's state capital. It is the sixth-largest city in Michigan with a population of more than 115,000 people. The college town is home to Michigan State University.
From Lansing, Interstate 96 runs east toward Detroit, and west to Grand Rapids. Interstate 69 runs east toward Flint, and south to Indianapolis. U.S. Route 127 south toward Cincinnati.
Orion Township Auto Insurance
Orion Township is sandwiched halfway between Detroit and Flint. The town was named after the nearby Lake Orion, as the name suggests. Lake Orion has a population of more than 35,000 people.
From Orion Township, Interstate 75 runs northwest through Flint, and south into Detroit. Michigan State Route 24 runs north past Lake Orion on the way to Lapeer, and south toward Auburn Hills. Baldwin Road runs south into Pontiac.
Livonia Auto Insurance
Livonia is a Detroit suburb. It has a population of more than 94,000 people. Livonia is situated near Detroit's airport.
From Livonia, Interstate 96 runs east into Detroit, and west through Lansing on the way to Grand Rapids. Interstate 275 runs north toward Novi, and south toward Romulus. Merriman Road heads south to the Detroit Metropolitan Wayne County Airport.
Warren Auto Insurance
Warren is a Detroit suburb. It is Michigan's third-largest city with a population of about 135,000 people. The restaurant chain Big Boy and the furniture retailer Art Van are both headquartered in Warren.
From Warren, Interstate 696 runs east to St. Clair Shores, and west past the Detroit Zoo. Michigan State Route 102 runs east into Grosse Pointe Woods, an upscale Detroit neighborhood, and jogs west where it turns into the famous 8 Mile Road. Michigan State Route 53 runs north through Sterling Heights, and south in the direction of Detroit's Belle Isle. Just outside of Warren, Interstate 75 connects with Detroit in the south, and Flint in the north.
Finding Auto Insurance Resources in Michigan
The Michigan Department of State is a great resource if you need information about auto insurance, driving laws, and licensing. Michigan DMV offices can assist you with voter registration, licensing, registering vehicles, and more.
If you have trouble obtaining insurance, you can ask an agent to help you apply for the Michigan Automobile Insurance Placement Facility (MAIPF). This joint underwriting agency obtains policies for people who can't get insurance otherwise.
The Michigan Department of Insurance and Financial Services (DIFS) also deals with complaints of suspicious activity by auto insurance agencies. Contact the DIFS Office of Consumer Services if you suspect that an agency isn't being truthful about refusing to cover you. The Office also assists with disputes over claims and settlements.
Tips for Understanding Michigan Auto Insurance
Michigan law requires all insurance companies to cover eligible residents. To be eligible, you must have a valid Michigan driver's license and a registered car in the state.
In a few circumstances, insurance companies can refuse to issue a policy. They often deny coverage if you have an auto insurance fraud conviction within the past five years or a felony involving a vehicle. This includes driving under the influence.
Although Michigan requires minimum coverage, you can opt for higher BI/PD limits. Insurance companies can also offer discounts to save you some money. These include the following:
- Anti-lock brakes.
- Anti-theft measures.
- Good credit.
- Good student.
- Multiple vehicles.
- Multiple policies.
- No claims or tickets.
Moving to Michigan: Important Information
If you're moving to Michigan, you need to obtain a driver's license and auto insurance. You'll also need to transfer the title and register your vehicle. To register your vehicle, you must provide proof of insurance in the state.
To obtain a Michigan driver's license with a valid out-of-state license, you need to present the following at the DMV office:
- Social Security Number or proof of ineligibility.
- Proof of citizenship or legal presence.
- Proof of Michigan residency.
- Proof of identity.
In addition, you must pass a vision test and meet physical standards. You'll have your photo taken at the DMV and pay a fee for a temporary license. This temporary license is valid until your official license arrives.
Understanding Driving Laws in Michigan
Michigan's Driver Responsibility Law encourages you and other drivers to be mindful on the road. Certain infractions earn a number of points after conviction. When you have too many points on your record, you face fines. Other infractions, such as drunken driving or reckless driving, automatically incur fines upon your conviction.
Michigan has no statewide ban on using your cell phone while driving. However, you may receive tickets or fines if using your cell phone leads you to violate traffic laws. Local municipalities may have their own laws about phone use, typically announced by signage. The state also has no ban on radar detectors.
Frequently Asked Questions About Michigan Auto Insurance
1. What can happen if you get into an accident while uninsured?
Driving your car or letting someone else drive your car without insurance is a misdemeanor. Getting into an accident without no-fault insurance opens you up to a lawsuit. You become liable for your medical expenses. You may also be fined and/or face jail time.
2. What are some suspicious reasons for denying insurance coverage?
Contact the DIFS Office of Consumer Services if an agency says it does not write policies in an area. Also, watch out for any statements such as "there is no agent in that area" or that the agency is not accepting new customers. An insurance company also can't require you to purchase a homeowners insurance policy.
3. What are some valid reasons for denying insurance coverage?
A history of non-payment on your insurance premium in the past two years is grounds for refusing to cover you. A company may also say no if your driving record is bad enough that you exceed the number of eligibility points allowed by a company. Eligibility points are not the same as the points used by the Driver Responsibility program.
How to Get Great Rates on Michigan Auto Insurance
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insuranceQuotes.com Auto Rate Methodology
Rates are based on one vehicle and one driver who has state minimum coverage with $500 deductibles. The hypothetical driver is 35 years old, female or male, employed, a college graduate, and has good credit. She has no traffic violations, claims, or lapse in coverage. The vehicle is assumed to be a sedan that is garaged on premises, used primarily for commuting, and driven 16,000 miles per year. Rates include commonly available carrier discounts and are estimates and not guaranteed.