Yes, GEICO covers Michigan with auto insurance policies tailored to the state’s requirements. However, it can be more complicated to get a GEICO insurance quote in Michigan than in other states. There are no GEICO agents in the state, and GEICO will not provide quotes online or by phone to Michigan residents. Rather, interested drivers have to email GEICO at [email protected] with their name and mailing address. GEICO will send a paper application to fill out and return. It usually takes about a month for GEICO to verify everything and provide a quote, according to GEICO customer service.
This restriction appears to be unique to GEICO. Other major insurance companies are able to provide online quotes to Michigan drivers with no issue.
Michigan car insurance laws require $50,000 of bodily injury liability coverage per person (up to $100,000 per accident) as well as $10,000 of property damage liability coverage. Additionally, Michigan drivers need to carry personal injury protection (PIP) and $1,000,000 in property protection insurance. Most drivers will need to purchase at least $250,000 in PIP, though there are some exceptions for Medicare and Medicaid recipients.… read full answer
Michigan’s insurance laws are unique, since it is the only state that requires property protection insurance (PPI). PPI covers damage to other people’s property within the state of Michigan, such as buildings, mailboxes, and parked cars. It does not apply to moving cars or to accidents that take place outside of Michigan. Additionally, Michigan is a no-fault state, meaning that drivers file most injury claims with their own PIP coverage.
Minimum Coverage Required by Michigan Car Insurance Laws
Bodily injury liability: $50,000 per person / $100,000 per accident
Property damage liability: $10,000
Personal injury protection: $250,000 for most drivers
Property protection insurance: $1,000,000
Uninsured motorist insurance: Not required
You can face multiple penalties if you’re caught driving without at least the minimum car insurance required in Michigan.
Car insurance in Michigan is expensive because it's a no fault state with high insurance coverage requirements. But the biggest reason Michigan drivers pay more for car insurance than anyone else in the country is that it is the only state with unlimited. In Michigan, you can expect to pay approximately $6,310 per year for full coverage car insurance or $2,197 per year for minimum coverage. Car insurance in Michigan is more expensive than the national average, which is around $2,000 annually for … read full answerfull coverage and about $700 per year for minimum coverage.
The cost of car insurance is steadily increasing, too, both in Michigan and nationwide. As the cost of providing insurance goes up, the premiums insurers charge also rise. All insured drivers share the increasing cost of insurance. That is why your rates tend to go up every time your policy is renewed, regardless of whether any individual factors—like your driving record or location—have changed.
There are several unique reasons why car insurance goes up every year in Michigan, too, even if your details remain the same.
Top Reasons Car Insurance Is Expensive in Michigan
People in Michigan are driving more. As a result, the number of accidents, claims, and payouts is rising, too. For example, there were approximately 1,011 fatal crashes in 2020 in Michigan, versus 896 fatal crashes in 2015.
Auto repairs are getting more expensive. Vehicles today cost more to repair due to the added technology and features. For example, a National Association of Insurance Commissioners study found that the average cost of vehicle repairs was around 8% higher in 2018 than it was in 2014.
People in Michigan drive uninsured. As the cost of car insurance continues to rise, more drivers take the risk of driving without car insurance. In 2019, 26% of drivers lacked even minimum liability insurance in Michigan. The cost of uninsured drivers is passed on to consumers through higher premiums.
Healthcare in Michigan is getting more expensive. Car insurance companies are hit hardest when paying out claims involving medical bills, and it’s not getting any cheaper. Healthcare spending increases by an average of 5.2% every year in Michigan.
Michigan is experiencing more severe weather. In Michigan, weather events like severe storms, serious winter weather, and droughts are becoming increasingly common. These weather events cause insurers to pay out a higher number of claims, which tend to be more expensive and less predictable. As a result, they have to raise rates to keep pace.
However, there could be other issues elevating your rates.
If your driving record is clean and your rates are still high, your car insurance might be expensive because of your:
Age. Drivers under 25 and older than 65 pay more for auto coverage because they are statistically more likely to be involved in serious and fatal accidents. In Michigan, 16-year-old drivers pay an average of $4,704 per year, 25-year-old drivers pay an average of $1,392 per year, and people over 65 pay an average of $1,305 per year.
Location and driving patterns. Population-dense cities have higher premiums than rural areas because city living usually means more accidents, more property crime, and more frequent claims. In Michigan, the most expensive locations for insurance are Brockton, Dorchester Center, and Dorchester. You can also expect rates to change based on your driving patterns—long commutes or regular driving in high-risk areas can cost you.
Financial responsibility. You can demonstrate financial responsibility by maintaining minimum car insurance with no gaps in coverage. Letting your coverage lapse could result in a higher rate when you get your next policy.
Claims history. Numerous recent claims can drive up your premiums. That's one reason why it sometimes makes sense to pay out of pocket rather than file a claim, especially if a claim won’t get you much more than your deductible.
How to Get Cheaper Car Insurance in Michigan
Multiple factors affect the cost of car insurance. Some things you can’t control, but you do have a say in most of the contributing factors. Driving safely, obeying traffic laws, and keeping a clean driving record are the best ways to keep your insurance costs down.
Other than that, the best way to lower your car insurance costs is to compare rates from at least three insurance companies. Ideally, you should check your rates every 6-12 months, when you renew your policy. But at a minimum, be sure to check your record and shop for rates every three to five years, since you may be able to get a lower rate if a traffic violation falls off your record.
In Michigan, the most expensive policies cost roughly $5,491 per year, and the least expensive coverage costs around $635 per year, when all driver profile information is the same. That means you could save as much as $4,856 simply by shopping around. Be sure to confirm you’re getting all the discounts you’re eligible for, too.
There are more than 50 auto insurers selling policies to Michigan drivers, including all of the popular national auto insurance companies. Michigan also has many local and regional auto insurance providers, including Michigan Farm Bureau and Frankenmuth Mutual.
Largest Michigan Auto Insurance Companies, by Premiums
For a complete list of Michigan auto insurance companies, you can go to the official site for the Michigan Department of Insurance and Financial Services. Unfortunately, you can only sort their list by “Property and Casualty Entities,” which gives you automobile, homeowners and property insurance companies. And the list doesn’t specify which of these types a company is. Bottom line: You need to do your research.
WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.
WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. This question was posted by WalletHub. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.
Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.