Best Car Insurance in Michigan

Michigan's auto insurance reform law changed the state's car insurance requirements for policies issued or renewed after July 2020. Under the new law, Michigan drivers no longer need to purchase unlimited personal injury protection (PIP) insurance, but they need higher liability limits. Michigan's insurance reform also decreased the Michigan Catastrophic Claims Association (MCCA) fee, which drivers must pay if they purchase unlimited PIP insurance.

Michigan Auto Insurance Reforms After July 2020 

1. Drivers need $250,000 in personal injury protection per person, with lower limits or exclusions allowed for drivers with Medicare, Medicaid, or qualified health care.
2. Insurers must offer an optional supplement to PIP insurance that covers attendant care, such as home nursing.
3. Drivers need $50,000 in bodily injury liability coverage per person ($100,000 per accident), plus $10,000 in property damage liability coverage for accidents outside the state.
4. Insurers must offer $3,000 in limited property damage liability insurance, which applies if you are 50% or more at fault in an accident and the other driver sues you for vehicle damage.

Michigan has some of the most expensive car insurance premiums in the country, as well as high fraud rates. To combat this, Michigan's auto insurance reform law implemented several new consumer protections.

Consumer Protections Created by Michigan's Auto Insurance Reform Law

• Insurance companies can no longer consider gender, home ownership, marital status, credit score, educational level, occupation, and ZIP code when determining rates.
• Drivers cannot be penalized for a lapse in auto insurance coverage as long as they apply for insurance by January 1, 2022.
• Michigan insurers must reduce PIP premiums, and all premiums need to be approved by the Department of Insurance and Financial Services.
• A new fraud investigation unit was formed.
• Fees and penalties for insurance companies who violate laws increased.

To learn more, check out WalletHub's guide to Michigan's car insurance requirements.

Yes, Michigan is a no-fault state for car insurance. In the event of an auto accident, a Michigan driver's no-fault personal injury protection (PIP) insurance pays for his or her own medical expenses, lost wages and at-home services like cleaning or laundry. It does not matter who caused the accident, unlike in fault states, where the at-fault driver must pay for the other party's expenses.

Minimum Limits Required By Michigan Insurance Laws

• Bodily injury liability: $50,000 per person / $100,000 per accident
• Property damage liability: $10,000
• Property protection insurance: $1,000,000
• Personal injury protection: $250,000 for most drivers

Michigan No-Fault Restrictions on Car Accident Lawsuits

Each no-fault state has its own rules for when you can sue an at-fault driver after an accident. Currently, Michigan is one of the strictest no-fault states in the country, only allowing you to sue the at-fault driver under very limited circumstances.

When You Can Sue

• If the accident is in Michigan and causes death, serious injury, or permanent disfigurement

• If a Michigan driver is involved in an accident in another state

• If a Michigan driver is in an accident within the state involving a non-resident driving a car not registered in Michigan

If the at-fault driver is sued, their liability policy will pay up to its limits. If the court awards more than their limits, they will be personally responsible for paying the amount not covered.

No, you cannot insure a car with a salvage title in Michigan. Salvage vehicles are cars that have been declared a total loss, meaning they're too damaged to be worth repairing and cannot be driven legally. As a result, no legitimate car insurance company writes policies for them.

Although insurance companies in Michigan won't insure a car with a current salvage title, you can get coverage if you have the vehicle repaired and inspected by a state-certified mechanic. If it's declared safe to drive, the DMV will issue the car a rebuilt title. Several insurance companies, including Allstate and Geico, sell policies to vehicles with a rebuilt title.

Keep in mind that some insurers will only sell liability insurance for rebuilt cars, meaning that they won't pay for any physical damage to the vehicle. Even if you are able to get collision and comprehensive insurance, your policy may not cover the full value of the car if it's totaled again.

Yes, personal injury protection (PIP) is required in Michigan. Drivers in Michigan are usually required to have at least $250,000 of PIP coverage for medical expenses, though there are some exceptions for drivers with Medicare or Medicaid.

For instance, policyholders with Medicare Parts A and B can opt out of PIP insurance if the other members of their household have their own auto insurance or health insurance that covers auto accidents. Similarly, drivers with Medicaid can purchase $50,000 in PIP if their household members have another auto or health insurance policy that covers crashes.

Personal injury protection helps ensure that everyone on the road in Michigan has some financial assistance for medical expenses in the event of a collision. Drivers in no-fault states are required to have PIP because they are restricted in terms of when they can sue another driver for compensation after an accident. That means PIP coverage is their first line of defense if they face hospital bills or a long recovery from an injury.

PIP Insurance in Michigan at a Glance

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.

Required Car Insurance in Michigan

In addition to PPI and PIP, drivers in Michigan are required to carry at least $50,000 in bodily injury liability insurance per person (up to $100,000 per accident) and $10,000 in property damage liability insurance.

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.

Some of the cheapest car insurance companies in Michigan include Travelers, Secura, Chubb, and USAA. You can also use WalletHub's comparison tools to find the best cheap policy.