Michigan Car Insurance Laws, Rates, and Minimums
If you're a Michigan resident, OnlineAutoInsurance.com can help you find the coverage you need at a price you can afford by allowing you to compare Michigan auto insurance quotes online from multiple companies. The state of Michigan's official website even suggests that you complete a rate comparison in order to find the cheapest premiums.
The Michigan auto insurance laws make it mandatory for every vehicle to have at least a no-fault policy. No-fault coverage includes compensation for unlimited medical and rehabilitation expenses, loss of wages and replacement services for up to three years regardless of who was at fault in an accident. Penalties for not having the minimum required coverage include a misdemeanor and/or fine in the range of $200 to $500, and offenders can even be put in jail for up to a year. Other penalties can also include a license suspension for 30 days or until the motorist can provide proof that his or her vehicle is insured.
Michigan No-Fault Auto Insurance - State Requirements
Personal Injury Protection
(PIP) Personal injury protection pays for all of the policyholder's bodily medical costs that are the result of an automobile accident.
Personal Protection Insurance
(PPI) Personal protection insurance pays for any damage to other people's property that the policyholder causes in the state of Michigan. This coverage pays up to $1 million.
Residual Bodily Injury and Property Damage Liability
(BI/PD) Residual bodily injury and property damage liability pays for court defense costs and/or damages you are found liable for as a result of an automobile accident up to the policy limits. Minimum coverage required is $20,000 per person, $40,000 total for multiple persons, and $10,000 total for property damage in other states. (This is commonly referred to as 20/40/10.)
Even though the above coverage is a minimum requirement, when comparing MI car insurance shoppers should consider purchasing additional coverage. No-fault policies do not pay to fix the insured vehicle's damages. Motorists should definitely consider buying Michigan auto insurance with additional options such as comprehensive and collision coverage which can be quite inexpensive depending on driving record and vehicle type, among other factors.
Some of the factors that the state allows Michigan car insurance companies to use when determining rates are:
- 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 a driver lives 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
- Credit score
- Student away at school
- Good student
- Good driver
Comparison shopping can be the key to finding cheap car insurance in MI and individuals should obtain as many quotes as possible before making a purchase to ensure that they are getting the best deal. For more information and tips, take a look at the Consumer's Guide to No-Fault Automobile Insurance in Michigan.