You need $50,000 in bodily injury coverage per person ($100,000 per accident). Bodily injury liability insurance pays for other people’s injuries after a car accident that you cause, and it can also cover your legal fees if you are sued after a crash.
In addition to bodily injury liability insurance, drivers in Michigan need to purchase $10,000 in property damage liability insurance. Property damage liability coverage pays for damage to others’ property after an accident caused by the policyholder. Together, these liability insurance requirements are often written as 50/100/10.
Michigan also requires drivers to buy personal injury protection (PIP) and $1 million in property protection insurance (PPI). For more information, check out WalletHub’s breakdown of how much car insurance you need in Michigan.
Michigan is a no-fault state, which means drivers get coverage for most car-accident injuries from their own personal injury protection (PIP) insurance, without the need to determine who caused the accident. One way that car insurance in Michigan is unique is that policies must include property protection insurance (PPI). PPI covers damage to fences, buildings, parked cars, and other property (except for moving vehicles) within the state of Michigan only.… read full answer
Since Michigan is a no-fault state, bodily injury liability only comes into play in certain situations. For instance, the not-at-fault driver can file a bodily injury claim against the at-fault driver if they’ve exceeded their PIP limits or if they seek compensation for pain and suffering.
Optional Car Insurance Coverage in Michigan
Any coverage above and beyond what is required by Michigan law is optional, but it’s worth noting that the state minimum coverage doesn’t protect your personal vehicle. For insurance to pay for damage to your car, you’ll need collision and comprehensive insurance.
In Michigan, a policy that includes comprehensive and collision costs about $4,011 per year, compared with an average of $1,908 per year for state minimum coverage. Comprehensive and collision are usually required on leased or financed cars, but drivers who own their vehicle can decide for themselves if they should purchase this coverage.
How to Buy Car Insurance in Michigan
To buy a Michigan car insurance policy, you should compare quotes from at least three companies, then select the price and coverage details that work best for your needs. Most policies offer coverage for six months to one year at a time and can be paid in a variety of ways, including monthly installments.
Car insurance in Michigan costs $159 per month, on average, or $1,908 per year. The average cost of car insurance in Michigan is 165% higher than the national average auto insurance premium, and Michigan ranks 50 out of 50 for the most affordable car insurance rates in the U.S.
There are several factors that affect how much you’ll pay for car insurance in Michigan, including your driving record, age, location, the amount of coverage that you purchase, and the insurance company you buy it from. On average, the cheapest insurance companies in Michigan are Travelers, Secura, and Wolverine Mutual. But every insurer has their own way of calculating premiums, so it’s a good idea to get quotes from at least three different companies to make sure you find the best deal.
Finally, it’s worth noting that car insurance premiums in Michigan are high, compared to the cost of coverage in neighboring states like Ohio and Illinois. You can find more details in the table below.
Cost of Car Insurance in Michigan vs. Neighboring States
No, uninsured motorist coverage is not required in Michigan, as drivers can reject the coverage in writing. Still, insurance companies are required to offer at least $50,000 in uninsured motorist bodily injury coverage per person (up to $100,000 per accident).
For Michigan drivers who do not opt out by rejecting the coverage in writing, uninsured/underinsured motorist coverage helps pay for a car accident in which the other driver doesn’t have car insurance, or doesn’t have enough coverage for the damage they caused.… read full answer
Why You Should Get Uninsured Motorist Coverage in Michigan
Normally, an at-fault driver’s insurance helps pay for any damage after an accident. However, if the other driver doesn’t have any – or enough – coverage, it can be time-consuming and difficult to sue them for funds to cover any medical or repair bills. That’s where this optional insurance coverage can help you save time and money.
Even though Michigan does not require uninsured and underinsured motorist coverage, you should still consider buying it. In Michigan, an average of 20% of drivers on the road don’t have car insurance, which means there is a 1 in 5 chance that the other driver won’t have coverage if you get into an accident. Car accidents in Michigan can be very expensive, too.
Key Facts About Uninsured Motorist Coverage in Michigan:
Minimum Uninsured Motorist Bodily Injury: $50,000 per person and up to $100,000 per accident
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