Michigan Car Insurance


Driving in the state of Michigan without car insurance is a crime and not one that you want to commit. Auto insurance is there to protect you from the financial burden you would be responsible for without the coverage in the event of an accident. Following car insurance laws ensures that you aren’t paying stiff penalties, including fines and possible suspension of your driving privileges.

Michigan Car Insurance Requirements

To comply with the car insurance laws in Michigan, drivers must carry a liability policy on their vehicle that includes the following amounts of coverage:

  Bodily Injury: $20,000 for 1 person; $40,000 for 2 people or more injured

Property Damage: $10,000

You have the option to add higher amounts than what is listed above. However, the above amounts are the lowest that can be purchased. You also have the choice to add optional auto insurance to the plan.

Optional Car Insurance in Michigan

Optional car insurance provides more sufficient coverage to your plan. Although the state does not require that you have these coverage types, it is a good idea to look at them to see whether they may be beneficial to your needs.

  • Collision
  • Comprehensive
  • Uninsured/ Underinsured Motorist
  • Rental Car coverage

Sometimes collision and comprehensives are required. This is usually for those who are financing a new car through a dealership.

Factors Affacting Michigan Car Insurance Rates

Your insurance rates are determined by several different factors. Among those factors:

  • Age – Drivers under 27 years old pay more to insure their cars.
  • Gender – Typically men are more expensive to insure.
  • Education- Are you a college graduate? If so expect lower rates on your policy.
  • Where do you live? – Drivers in bigger cities like Detroit will pay more than drivers in smaller towns like Allen Park.
  • Type of Vehicle – The vehicle being insured will always affect the cost of the insurance coverage. Sports and luxury cars are the most expensive to insure.
  • Coverage – The amount of coverage that you want is also a price factor
  • Driving Record –If you have several tickets or accidents on your record, expect your rates to skyrocket.
  • Insurance History – if you are a chronic lapser and have had several policy lapses, expect to pay more and have a harder time finding a company to work with you.

Michigan Car Insurance Discounts

Before purchasing the state-required Michigan car insurance, make sure that you look for discounts. Almost all insurance companies offer them, and by taking advantage you will certainly knock a nice chunk of change off of the cost of your premium. Some of the discounts that you should ask about include:

  • Multi-Policy
  • Multi-Car
  • Good Driver
  • Loyal Customer
  • Safety Equipment discounts

Do not be shy and ask about all discounts that you can use to get a break on your car insurance rates!

Michigan Car Insurance Quick Facts 

Proof of auto insurance coverage should be carried inside of your vehicle at all times. This proof must be presented upon request from any law enforcement officer and after you have been involved in an accident. Generally an insurance card given to you by the insurance company will serve as the needed proof of coverage.

If you are caught driving without auto insurance in Michigan, there are penalties. Drivers can expect to pay a fine between $200 – $500, and potentially face spending up to one year in jail. Driver’s license suspension is also a potential penalty if you are caught driving without auto insurance.

If you cannot find an auto insurance company to provide you coverage, you can contact the Michigan Auto Insurance Placement Facility for assistance in obtaining the coverage that you need.