Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insurance...

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Reviewed by Leslie Kasperowicz
Former Farmers Insurance CSR

UPDATED: Oct 30, 2020

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While its official nickname is “the Wolverine State”, Michigan could just as easily be known as “The Automobile Factory State”. Although US automakers have suffered some setbacks in recent times, the state still relies on the automobile industry as a supplier of jobs and a supporter of local and state economies. Without drivers, however, there would be no market for cars, and drivers require insurance. Let’s take a brief look at Michigan auto insurance and how it works.

Table of Contents

Michigan Auto Insurance Laws And Requirements

In Michigan, the state liability coverage minimums are:

  • Bodily Injury Liability Coverage – $20,000 per person
  • Bodily Injury Liability Coverage – $40,000 per accident
  • Property Damage Liability Coverage – $10,000 per accident

Take a look at how Michigan’s minimum rates compare with surrounding states.

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Personal Injury Protection coverage minimums:

  • Required but limits are constantly changing, so check with your insurance provider

Property Protection Insurance minimums:

  • $1,000,000 per accident

Optional coverage options in Michigan:

  • Comprehensive Coverage
  • Limited Collision Coverage
  • Standard Collision Coverage
  • Broad Form Collision Coverage
  • Towing and Labor Coverage (Roadside Assistance)
  • Rental Car Reimbursement Coverage
  • Uninsured/Underinsured Motorist Coverage

The first and most important fact about Michigan’s auto insurance that drivers need to be well aware of is that Michigan is a “no fault” state. This means that no matter who causes the accident, all parties are considered at fault, and will be covered by their own insurance. While this does share the burden of accidents somewhat, it can also be a bit of a pain for those that never actually cause accidents but seem to attract them like a magnet.

Michigan has mandatory minimum amounts of coverage, like almost every other state. Drivers are required to carry $20,000 in bodily injury liability for per person per accident, $40,000 in bodily injury liability total per accident, and $10,000 in property damage liability coverage per accident. Personal injury protection or PIP coverage is also required; this type of coverage pays your medical expenses for any injuries you sustain in an accident. Each insurance company will differ in regards to which family members, passengers and others they insure outside of the vehicle’s driver, so if you typically have family members in the car or a teenager who drives the vehicle, it’s best to compare policies to find out which suits your needs.

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Michigan Car Insurance Rates

As of 2010, Michigan had the second highest auto insurance rates in the nation, behind Louisiana. The average annual premium was about $2100, which comes out to about $175 per month – and that’s the average.

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Many individuals are paying much higher rates for their car insurance, thanks to insurance companies pricing coverage based on variables like credit rating, past driving history, area of residence and many other factors.

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With rates being as high as they are, it’s good to see a reprieve in rates when it comes to gender. Unlike most states, Michigan has outlawed insurance companies charging different rates based on gender.

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Unsurprisingly, rates increase as we get closer to city ZIP codes.

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While the price has trended downward in 2011, it’s still going to pay off for Michigan drivers to do some research and talk with a few auto insurance agents before committing to any Michigan auto insurance company. There is a ton of competition in the marketplace, and

Michigan Auto Insurance Rates by Company

With such expensive rates, it pays to shop around! Take a look at how rates between companies compane versus the state average.

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But which companies are the largest, holding the most market share percentage in the region?

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Michigan Driving Statistics

The situation is much improved for Michigan drivers when we take a look the most recent auto crash statistics. 2009 saw a total of 291,000 accidents on Michigan roads and highways, which was a decrease of almost eight percent over the 2008 numbers. There was 871 total fatalities and about 71,000 injuries caused by automobile accidents in 2009, which again were down eleven and five percent respectively. As more than fourteen percent of these accidents were due to excessive speed, it should come as no surprise that law enforcement and state officials are pleading Michigan’s drivers to slow down, for the safety of everyone.

Things are looking up for Michigan residents in the auto theft department – although some of the decline is likely attributed to the population drop the state has experienced over the past couple of years. 2009 saw 29,383 auto thefts in the state – a rate of 339 per 100,000 citizens. This ranks Michigan at number 6 in the nation, a rather terrible ranking overall but at least the situation is improving. 2009’s numbers saw a drop of over 6,000 auto thefts compared to 2008, so while the situation is somewhat dire it is at least improving. Michigan drivers would do well to purchase an anti-theft device for their automobiles, which can help deter thieves from making your car their next target.

There’s no doubt that the state of Michigan is going through some tough times thanks to the national economic downturn and the troubles of the automobile manufacturers. These troubles are even reflected on Michigan roads, which saw a vehicle mileage decrease of over five percent from 2008 to 2009 as fewer drivers are getting behind the wheel and driving less when they do. Regardless of how much you drive, you’ll still need insurance – and to get the best deal you’ll need to do some digging. As long as you take the time to do your research, you should come out on top.

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Michigan Auto Insurance Agents

Michigan Auto Insurance Agents

Additional Auto Insurance Information In Michigan

  • Michigan Insurance Department – Michigan office of financial and insurance regulation.
  • No Fault Automobile Insurance In Michigan – A consumer’s guide to no fault auto insurance in Michigan.
  • Michigan DMV – Official site for the Michigan dept. of motor vehicles (SOS).
  • Michigan Highway Safety Laws – Governors highways safety association page for the state of Michigan.