The Michigan auto insurance law makes it mandatory for every vehicle to have at lest no fault auto insurance. No fault coverage includes unlimited medical and rehabilitation expenses, loss of wages and replacement services for up to three years regardless of who was at fault. Penalties for not having the minimum required coverage includes a misdemeanor and/or a fine in the range of $200 to $500 and you can even be put in jail for up to a year. Other penalties can also include a 30 day license suspension or until you can provide proof that your vehicle is insured.

Even though the above coverage is a minimum requirement, one should consider purchasing additional coverage. Non fault auto insurance does not pay to fix your vehicle's damages. You should definitely consider additional coverage such as comprehensive and collision coverage which can be quite inexpensive depending on your driving record and vehicle type among other factors.

• Type of Vehicle - Higher cost vehicles generally generate a higher rate. Rates for two and four door vehicles often vary slightly.
• Driving Record - Of course the more violations and accidents you have, the higher the auto insurance rates.
• Age/Driving Experience - Younger and newer drivers generate higher rates.
• Territory - Where you live is often a determining factor. Some cities and regions are considered higher risk due to traffic, theft history etc.
• Discounts
• Air Bags
• Anti Lock Brakes
• Anti Theft Devices
• Multi Vehicle
• Multi Policy
• Credit Score
• Student away at School
• Good Student
• Good Driver

For more information and tips, take a look at the Buyers Guide to Auto Insurance in Michigan.