Michigan Auto Insurance

Auto insurance in Michigan

Car insurance is mandatory in all the states, with current laws regulating the acquiring of such policies. The main role of such insurance is to help drivers stay safe and protected, should accidents occur. Whether the driver uses the vehicle for personal or professional purposes, having adequate insurance is mandatory. Should the insurance be absent, drivers have to pay fines of up to $1,000. Their driving documents might be suspended as well, for up to six months. This can refer to the driver's license or vehicle registration. To discover more information on the topic of auto insurance in Michigan, just keep on reading.

What type of car insurance do you legally need in Michigan?

According to the Mandatory Liability Insurance Act, all Michigan residents who intend to operate a moving vehicle must be covered by a liability insurance policy. Should the mandatory insurance be absent, the respective driving documents can be suspended for several months or even more. An online insurance verification system is used to determine whether the driver in question has insured his/her vehicle or not.

Residents who manifest the wish to operate a vehicle in the state of Michigan must have a valid insurance policy that meets several guidelines. These include: bodily injury liability ($40,000 per accident and $20,000 per person), property damage liability ($10,000 per accident), uninsured motorist bodily injury ($40,000 per accident and $20,000 per person), property protection ($1 million), and personal injury protection (unlimited with deductible). The full coverage insurance is more recommended than the minimum liability coverage, especially since optional coverages can be added (comprehensive and collision insurance). Drivers should always choose the highest possible coverage limit, in order to be protected if the worst-case scenario occurs.

The sums you see mentioned above refer to the maximum amount insurance providers are able to pay, should an accident occur, for which the respective policy holder is at fault. The law imposes all drivers carry a copy of their insurance policy while driving. The same law clearly states that it is illegal to drive without a valid policy in Michigan, with consequences such as legal fines and the suspension of one's driving documents. Should one continue to operate the vehicle in question without insurance, jail time might be enforced, as this is legally seen as a repeated infraction.

Average cost of auto insurance in Michigan

How much does car insurance cost in MI? The state minimum auto insurance policy in Michigan has a value of $1,190. However, a full coverage insurance policy has an average value of $2,639. Collision and comprehensive insurance are not always included in the general policy, which means you will have to calculate the budget accordingly. Several factors influence the overall insurance rates, including: type of vehicle, presence of prior insurance, marital status, age, gender, number of miles driven, driving record, etc. The recommendation is to choose an insurance policy that offers the best possible coverage, staying away from those that are significantly cheap.

It is common knowledge that the average cost of auto insurance differs from one state to the other. Policy holders can expect such variations for both the minimum and full coverage, including when it comes to options (comprehensive, collision). The factors influencing these values include: weather-related accidents, at-fault accidents, number of drivers in accordance with the general population, uninsured drivers in the city, road conditions.

Michigan has a significantly higher rate for the average auto insurance than the national median, which is around $1,770. The states with the most expensive policies include: Pennsylvania, New York, Nevada, Michigan, Louisiana, Florida, Colorado, and California. As for the states with the most affordable rates, these include: Wisconsin, Washington, Tennessee, Oregon, North Dakota, New Mexico, Nebraska, and Maine. New York is the most expensive, with $2,996 for the full coverage and $1,339 for the minimum one. As for Maine, it has some of the most affordable policies, with $876 for the full coverage and $227 for the minimum one imposed by the state.

Within the state of Michigan, you might also notice differences between the various cities. Grand Rapids has some of the most affordable auto insurance policies, while Detroit stands at the top of the list. The average annual premiums in major cities are as follows: Grand Rapids - $1,986; Lansing - $2,078; Sterling Heights - $2,853; Warren - $3,252; Detroit - $4,726.

In deciding on the value of auto insurance, one of the factors considered is the driver's age. Auto insurance is more expensive for young drivers, as companies perceive them as less responsible than adults. Teenage drivers usually pay annual premiums of over $7,700, while middle-aged drivers are accustomed to annual premiums that are close to $2,000. Slight differences are also present between genders, with men being offered more affordable rates. Married couples are given affordable coverages as well, in contrast to those who are divorced, single, or widowed.

Another factor that plays a definite influence is the driver's credit history, which is typically thoroughly analyzed by insurance providers. A driver with an exceptional credit will save important sums on his/her insurance premium, while someone with a poor credit history will struggle to meet the higher rates. It is common knowledge that the auto insurance value differs in accordance with the type of coverage. Drivers are encouraged to add both comprehensive and collision to the state minimum policy, in order to increase the level of protection offered. However, they will have to adjust their budget accordingly, as such options are usually expensive.

Did not find your city or county on the list? Please use our auto insurance companies search box at the top to locate all the best auto insurance quotes in Michigan. Find car insurance in Michigan by city, zip code or county name.

Finding the right auto insurance in Michigan

Are you having a hard time finding the right auto insurance policy? If your answer is yes, then perhaps you might consider our help. We have both the practical experience and knowledge to provide all the assistance needed, matching drivers with the best policies for their needs. All of the suggestions are made with careful consideration to your available budget. Just give us a call and we will talk about your insurance needs. This service is 100% free and it can save you from having to handle everything on your own, thus saving a lot of time and energy.