Michigan Car Insurance


Drivers in Michigan have the unfortunate experience of living in the state with the 2nd highest car insurance premiums in the country. Second only to Louisiana, drivers in Michigan pay incredibly high rates due to unique laws governing the way auto insurance companies must pay the medical bills associated with injuries and car accidents. Our goal at CarInsuranceReviews.com is to help you understand Michigan insurance law so that you can purchase the most beneficial policy possible.

Financial Responsibility in Michigan

The financial responsibility laws in Michigan are very simple. While some states allow drivers to purchase bonds or issue certificates of deposit, Michigan drivers have no choice but to purchase a car insurance policy from a state-approved carrier.

Michigan’s No-Fault Laws

Michigan drivers don’t pay high insurance rates because they’re bad drivers. They pay higher insurance premiums because of state laws protecting those injured in a car insurance accident. Even though there is a minimum limit of bodily injury liability coverage that must be purchased, state law requires all insurers to pay all of the medical bills associated with an accident – no matter how high or continuous. Insurance carriers are on the hook regardless of how much liability coverage a driver purchases. As a result, insurers have increased prices to help cover their increased costs between the time of an accident and the time the state-fund kicks in to help.

Minimum Insurance Coverage in Michigan

Despite having such strange medical liability laws, the state of Michigan has set very low minimum insurance limits for drivers. In order to operate a motor vehicle you must have a policy with at least $20,000 per person and $40,000 in bodily injury liability coverage and $10,000 in property damage coverage. You are also required to have PIP, or personal injury protection, to pay your own initial medical bills in any accident, regardless of fault. These limits are all very low and should be increased if you can afford to do so.

Driving without Insurance in Michigan

Michigan drivers must have proof of insurance with them at all times. Failure to carry proper insurance coverage can result in a suspension of your driver’s license, suspension of your registration, traffic violation tickets, and additional fines. You’ll have to prove you have insurance, pay all of your reinstatement fees, and pay the fines before you can drive again.

Do you have a less-than-stellar driving record? If so, standard Michigan insurance companies may not insure you at all and the ones who will may charge astronomical prices to discourage you from making a purchase. If this is the case, you may need to contact the Michigan Auto Insurance Placement program (MAIPF) to obtain coverage.

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