Save up to 15% on your car insurance rates*

Get multiple quotes from national carriers

*Savings will vary from driver to driver.


Michigan Car Insurance & Minimum Coverage Amounts

Michigan is the heart of the American automobile industry. It’s no doubt that cars are extremely important to the state. But Michigan has a lot to offer other than its vehicles. Lake Michigan and Shipwreck Alley, museums, aquariums and more are tourist destinations in the state of Michigan.

If you live in the Great Lake State or are planning to move there, you’ll need to ensure that you have the right car insurance for your vehicle. In this guide, we’ll look at the mandatory requirements for Michigan car insurance and what happens if you’re caught without it!

Michigan Car Insurance Minimum Coverage

If you’re planning to drive a car in the Great Lake State, you’re going to need to meet Michigan car insurance requirements. Currently, all drivers must carry the following minimums:

  • Bodily injury liability: $20,000 per person and $40,000 per accident
  • Property damage liability: $10,000
  • Personal injury protection (PIP): Unlimited – your deductible can be $0, $300 or $500
  • Uninsured motorist bodily injury protection: $20,000 per person and $40,000 per accident
  • Property protection: $1 million

As you can see, the coverage requirements in Michigan are a bit unlike-and much higher than-other states. Let’s talk a bit more about what you can expect to pay for these high insurance premiums.

What is the Average Cost of Car Insurance in Michigan?

Michigan has the highest average insurance premiums in the country. If you opt for full coverage, you can expect to pay $2,309 on average each year. Minimum coverage will average you almost $1,000 each year.

If you’re planning to insure your car in Michigan, you’ll need to do some shopping around to find the best rate. If you have a good driving record, you can sometimes take advantage of discounts. Your home address will also impact the rate you pay for your premiums.

Why is Car Insurance So Expensive in Michigan?

The state has the most expensive requirements and the most expensive premiums, so about 20% of all Michigan drivers are uninsured. This, of course, further brings up the cost of your car insurance premiums.

There are also several very high-crime areas in Michigan. In Detroit, for example, your odds of becoming a victim of a property crime is 1 in 23. The city’s vehicle theft rate is 10,33 per 1,000 while the nation’s average is 2.2 per 1,000.

Thankfully, the zip code where you park your car may impact the rates you pay for your Michigan car insurance.

Lapses in Michigan Car Insurance

If you’re stopped by the police in Michigan and can’t prove you have car insurance, you’ll be charged a total of $400. And that’s just if you can’t prove it. If you really don’t have insurance, you’ll be fined $1,000.

In addition to those fines, you’ll need to pay a reinstatement fee once you finally do obtain proper insurance. Your license and tags will be suspended for up to 30 days, and you could face up to a year in jail, particularly for multiple violations.

To avoid trouble with the courts, it’s best to ensure that your Michigan car insurance is up to date and paid up. Be sure you carry proof of insurance with you in your vehicle at all times.

Best Auto Insurance in Michigan

Michigan drivers were polled to determine the best car insurance companies in the state. The five insurers that were consistently rated the highest were:

  • USAA
  • Progressive
  • Auto Owners
  • State Farm

These Michigan car insurance companies have demonstrated the most financial stability, the lowest prices for good drivers and the best ratings for JD Power customer satisfaction.

Driving in Michigan

If you’re planning to move to Michigan, there are a few laws you may be interested to hear. Here are some facts about driving in the state that you can share with your new Michigan friends.

  • It costs three cents per day to keep your cow on downtown Main Street in Wayland.
  • It’s technically illegal to buy or sell a car on Sundays in Michigan.
  • On average, there are over 300,000 car crashes in Michigan each year.
  • One in every 23 drivers in Michigan will experience a traffic accident each year.

Conclusion: Michigan Car Insurance

Michigan is the American home of the automobile, so it’s no surprise the state takes their car insurance laws seriously. Michigan has the most expensive premiums in the nation, but it’s recommended you keep your car covered. Failure to do so could lead to large fines and even jail time.