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.