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Michigan Car Insurance


Michigan is known for having the most comprehensive no-fault insurance system in the country – and some of the highest car insurance rates as well. The ZIP code 48227 in Detroit has the highest average annual rate in the U.S., at $5,109. Even a driver with a great record will pay thousands of dollars a year in many Detroit-area suburbs. Rates fall substantially in Michigan’s more rural areas.

While you don’t have a choice about whether or not to buy car insurance in Michigan, you do have options on how much you pay for it. We’ll show you how to be sure you are finding the cheapest car insurance in Michigan, provide average car insurance rates for your area so you can compare costs, and explain Michigan car insurance laws.

Jump ahead:
Cheapest rates
Coverage recommendations

MI car insurance: minimum state requirements

Michigan car insurance laws require the following minimum coverages:

  • Bodily injury liability: This covers injuries to others when you or drivers on your policy are at-fault in an accident. You must have at least $20,000 per person of bodily injury insurance, which pays up to that amount for each person injured or killed. You must also have at least $40,000 for each accident if several people are hurt or killed.
  • Property damage liability: Pays to repair damage you cause to other cars or property in another state. You must have at least $10,000 property damage liability coverage.
  • Personal injury protection (PIP): PIP is used to pay for medical expenses regardless of who is at fault. Michigan's no-fault system provides you and your family with unlimited lifetime coverage for medical expenses resulting from an auto accident, regardless of fault.
  • Property protection insurance: Property protection insurance (PPI) is a mandatory coverage specific to Michigan. It provides up to $1 million in protection from damage to buildings, fences, poles, other inanimate objects and legally parked cars. Claims under PPI only apply to unintentional damage to other people's property, so if you run into your own fence, you'll pay out of pocket to fix it.

Car insurance quotes in Michigan

Use our average car insurance rates tool to compare rates for your neighborhood. Enter a ZIP code to see how rates compare among six major carriers surveyed. This will let you know what the most affordable car insurance price is in your area.

It’s always smart to shop for the lowest car insurance rates, but it’s even more important in Michigan, which has some of the highest rates in the country. The cost of a car insurance policy can vary by hundreds – sometimes thousands – of dollars. This is because every car insurance company uses different formulas to calculate your rate. To see how much you can save by comparing quotes, here we show the difference between the highest and lowest price among six carriers for the same Michigan driver in several locations:


ZIP code

Highest rate

Lowest rate

Amount you may overpay






Grand Rapids





Ann Arbor










Grosse Pointe















* Averages are based on insurance for a single 40-year-old male who commutes 12 miles to work each day, with policy limits of 100/300/50 ($100,000 for injury liability for one person, $300,000 for all injuries and $50,000 for property damage in an accident) and a $500 deductible on collision and comprehensive coverage.  Data for CarInsurance.com provided by Quadrant Information Services.

Residual coverage in MI

Bodily injury liability and property damage liability – 20/40/10 – must be purchased in Michigan. But in Michigan what they cover is different compared to other states. They are referred to as residual coverage. This is because the no-fault law protects insured drivers from being sued, and covers injuries regardless of fault. So your required liability coverages usually won’t come into play. However, there are specific situations in which you can be sued. These include:

  • If you cause an accident (in Michigan) in which someone is killed, seriously injured or permanently disfigured.
  • If you're involved in an accident (in Michigan) with a nonresident who is an occupant of a vehicle registered outside of Michigan.
  • If you're involved in an auto accident in another state.

If you’re sued for damages that exceed your liability limits, you will be responsible to pay the difference.

Mini-tort law in Michigan

The "mini-tort" portion of the Michigan no-fault law establishes another situation in which you can sue or be sued. Under this provision, if you're 50 percent or more at fault in an accident and caused damage to another person's car and that vehicle is not completely covered by the owner's insurance policy, then you may have to pay up to $1,000 in damages.

This law also allows you to sue, or claim against, another driver who is 50 percent or more at fault for damage to your car if it isn't fully covered by your own insurance policy. You can receive up to $1,000 from the other party. If you have collision coverage, you're able to sue for your deductible amount (up to $1,000) from the other party.

More on MI PIP: Lost wages, rehab, household expenses, deductibles

PIP coverage in Michigan also pays, up to a limit, for wages you would have earned if you had not been hurt, for up to three years. Currently, the maximum wage loss per month under MI PIP is $5,392. PIP benefits also include coverage for rehabilitation. You additionally get paid $20 a day for up to three years to pay for household tasks and home maintenance that you can no longer do because you are injured.

Typically you will have to pay a deductible for your PIP. This is the amount you are responsible for before your insurer pays out benefits. The deductible varies by insurer, but is usually $300 or $500 for each accident.

If you are killed in an accident, your policy will pay your dependents up to the monthly amount for three years.

Cheapest car insurance in MI

If you have few assets or you have an old car, you may want to buy cheap MI auto insurance. Here is what the cheapest car insurance costs, on average, broken down by age and gender, based on data commissioned by CarInsurance.com from Quadrant Information Services:



Rate for women

Rate for men











































Average for all ages



*The table shows the average annual rate of 10 ZIP codes in the state from the following carriers, in no particular order: Progressive, Allstate, State Farm, Nationwide, GEICO and Farmers.  Data was provided for CarInsurance.com by Quadrant Information Services.


MI car insurance coverage recommendations

Best car insurance in Michigan

 Here are other optional coverages you can buy:

  • Collision: Pays for damage to your car from an accident. The average yearly cost for collision coverage in Michigan is $369, according to the Insurance Information Institute, an industry trade group.
  • Comprehensive insurance: Pays to replace stolen cars and for damages to your car from fire, flooding, hail, animal strikes, falling objects and vandalism. The average annual cost for comprehensive coverage in Michigan is $143, according to the III.
  • Limited Property Damage: A basic liability policy doesn't cover the $1,000 mini-tort liability – when you are more than 50 percent at-fault for a collision and get sued for the other car’s damage. But you can obtain optional "limited property damage liability" coverage, for an extra cost, to cover this potential liability.

It's important to carry collision coverage on your vehicle if it's newer or not easily replaced. This is because Michigan's no-fault PPI insurance only pays for damages to properly parked vehicles. Also, the mini-tort law only allows you to sue an at-fault driver for up to $1,000 for other types of damage.

There are three basic kinds of collision insurance to choose from in Michigan:

  • Broad Form collision -- pays for damages regardless of fault, with a deductible that applies only if you are substantially at fault
  • Standard collision -- pays for damages regardless of fault, with a deductible that always applies.
  • Limited collision -- pays only if you are not substantially at fault, and may or may not have a deductible.

Michigan drivers have a 1 in 97 chance of hitting a deer – the state is ranked No. 10 in the nation for having the most deer-car crashes, according to State Farm. Because animal strikes are covered by comprehensive insurance, it’s wise to buy this optional coverage.

Collision coverage and comprehensive insurance come with a deductible. A deductible is the amount you pay before your insurance pays out. You can typically choose a deductible of $250, $500 or $1,000. For instance, say you select a $1,000 deductible. Your repair bill after an accident is $2,500. You will pay $1,000 and your insurance company will pay $1,500. The higher your deductible is, the lower your rates. This may be a way to save money if you have an old car. But if you choose a high deductible to pay less in rates, be sure you have savings to pay the deductible if you have to file a claim to get your car fixed.


Best car insurance in MI: How much does full auto insurance coverage cost?

Michigan motorists are protected with the most generous no-fault personal injury protection benefits in the nation – you and your family receive unlimited lifetime medical benefits regardless of fault in accidents. And, it’s true that In Michigan, your bodily liability insurance will typically not be triggered for claims due to the pay outs that come under the no-fault PIP portion of your policy. But it’s still wise to consider buying extra car insurance coverage.

Here’s why: Under the few exceptions when your bodily injury coverage does come into play, you will only be covered up to your policy limits. If you have minimum bodily injury limits and are sued, you are responsible for paying the difference. For instance, if you kill another driver in an accident, and the family sues you for $100,000 for pain and suffering, your insurer will only pay out $20,000, leaving you to pay the remaining $80,000.  

The good news is that full coverage usually isn’t that much more expensive than minimum coverage. You do pay more if you choose to get higher liability limits, comprehensive and collision coverage, but typically the extra protection is worth the relatively small increase you pay for the best car insurance in MI.

III, an industry trade group, recommends full coverage as follows: $100,000 worth of bodily injury liability for one person killed or hurt in an accident, and up to $300,000 for more people harmed in one accident, along with $100,000 in property damage liability.

Here is how minimum and full coverage rates (100/300/100) compare:

Average Michigan car insurance rates for minimum coverage and full coverage



Minimum liability

Full coverage with $1,000 deductible

Annual extra cost for full coverage

Monthly extra cost for full coverage











*The table shows the average annual rate of 10 ZIP codes in the state from the following carriers, in no particular order: Progressive, Allstate, State Farm, Nationwide, GEICO and Farmers.  Data was provided for CarInsurance.com by Quadrant Information Services.

How tickets, accidents, teens, credit impact Michigan auto insurance rates

Having poor credit and adding a teen driver can boost your car insurance rates significantly, as can accidents and lapses in coverage. Here are how rates, compare on average, for MI drivers after the following incidents:



Clean driver rate

Rate after incident

$ difference

One bodily injury accident




One property damage accident over $1,000




Coverage lapse of 60 days




Add 16-year-old female




Add 16-year-old male




Poor credit




*The table shows the average annual rate of 10 ZIP codes in the state from the following carriers, in no particular order: Progressive, Allstate, State Farm, Nationwide, GEICO and Farmers. Data was provided for CarInsurance.com by Quadrant Information Services.


Michigan car insurance laws

Michigan auto reform

Legislators have long recognized that Michigan’s unique car insurance law – combining no-fault coverage and unlimited medical benefits – significantly contributes to costs, making Michigan’s rates the highest in the nation. To that end, various reform bills have been pitched over the years to rein in costs. The latest Michigan auto reform effort stalled when lawmakers, insurance companies and hospitals failed to reach an agreement on how to overhaul the existing law.

Michigan car insurance eligibility points

Car insurance companies in Michigan assign you insurance eligibility points for certain traffic violations. These points are used when deciding whether or not to sell you a policy. Note, however, that the eligibility points used by insurers are not the same as the points on your driving record.

You can be turned down for automobile insurance if you have 7 or more eligibility points from violations within the past three years.

Here is how Michigan car insurance companies assign eligibility points:

  • Driving more than 15 mph over the speed limit (careless driving) -- 4 points
  • Driving 11-15 mph over the speed limit – 3 points
  • Driving 15 mph or fewer over the speed limit on freeways that used to have a maximum speed limit of 70 mph -- 2 points
  • Other moving violations -- 2 points
  • The first accident in which you are more than 50 percent at fault -- 3 points
  • The second and subsequent accidents in which you are more than half at fault – 4 points

For a list of driver license points for infractions, visit the Secretary of State Michigan driver point system website.

Michigan Automobile Insurance Placement Facility (MAIPF)

If you are denied coverage by insurers in the regular market, you can buy a policy through the Michigan Automobile Insurance Placement Facility (MAIPF). This group was created to ensure that high-risk drivers could still buy insurance and is made up of major car insurance companies. They are required by law to sell coverage to high-risk drivers. Any licensed agent can help you apply for insurance through the MAIPF. Once you apply, your application will be assigned to a MAIPF company.  Alternatively, you may also shop for insurance from companies that specialize in policies for high risk drivers.

For information on rates and coverages, visit the MAIPF website.

Basic Driver Improvement Courses (BDIC)

If you are cited for a traffic violation, you may qualify to take a driver improvement course. If you pass, the course provider will notify the Michigan Department of State electronically. This means no points from the ticket will be tacked on to your driving record and state department will not show the ticket information to insurance companies. The ticket information (but not the points) is still placed on your record, though, and may be viewed by courts and cops.

The course costs up to $100 depending on the provider. If are eligible, you will be notified by mail about the Basic Driver Improvement Courses (BDIC) process. You may participate if you:

  • You have 2 or fewer points on your record
  • The violation was not in a commercial vehicle
  • The violation was not a criminal offense
  • The ticket you received is for 3 or fewer points, and not for a major offense such as DUI or not for careless or negligent driving

Get a copy of your driving record

If you want to review your record, for instance, you’re not sure how many license points you have, you can buy a copy from the Record Lookup Unit. This process may take up to two weeks. It costs $8, ($9 for a certified copy), which must be paid in advance with check or credit card. The request form is available at this website.

MI health insurance and car insurance discount coordination

You may get a lower PIP rate if you “coordinate” your coverage with your health insurance as long as you do not have Medicaid, Medicare or a Medicare supplemental policy. If you go this route, your no-fault policy will pay your medical expenses or lost wages after you have used all the benefits under your health or disability plan. Check with your health insurance company to make sure your policy will pay for injuries related to a car accident before you try to coordinate coverage.

Work Loss Waiver, discount for seniors and retirees

If you are age 65 or older, Michigan car insurance laws require insurers to offer you a discount if you drive your vehicle less than 3,000 miles a year. If you are age 60 or over with no salary from a job, you can also get a lower PIP rate by waiving coverage for work loss that is paid out under PIP. You can waive this coverage for yourself and your eligible retired spouse, but you must still carry it for other persons who may be injured in your car or by your car in an accident.

Filing a complaint, finding answers to why you’re denied coverage

If you have questions about your eligibility for coverage or want to file a complaint about an insurance company, call the Office of Consumer Services at 877-999-6442 to ask questions or to file a complaint. You can get insurance company complaint forms by visiting the Department of Insurance and Financial Services website.

Uninsured motorist penalties for Michigan

If you own a car without no-fault insurance and have an accident, you can be sued and held liable. You also will not be paid for medical costs, lost salary or any other no-fault benefits if you are hurt in an accident involving a car you own that it is not insured. You may have to pay $200 to $500 in fines, be sentenced to one year in jail and have your license suspended.

Age restrictions

There is no age restriction for owning a car in Michigan, but minors need a parent or guardian to sign an insurance policy on the car because it is a legal contract.

Insurance fraud

Due in part to Michigan's high insurance rates, fraud is more common there than in any other state. Many drivers carry fake car insurance -- one study in 2013 found that approximately 16 percent of car insurance policies in Michigan are bogus.

How much does a speeding ticket raise your rates?

If you are convicted of speeding, your car insurance rates will go up 28 percent, on average, per year, according to an analysis of rates from six insurers for 10 ZIP codes in the state.

DUI insurance in MI

Here are the fines and penalties if you are convicted of drunken driving in Michigan (first offense):

  • Jail -- up to 93 days
  • License suspension -- 30 days followed by restrictions for 150 days
  • Driver’s license points – 6
  • Fine -- $100-500; $1,000 driver responsibility fee for two years
  • Possible: up to 360 hours community service; Ignition interlock device

How long a DUI affects your insurance rate depends on your company, but car insurers typically consider offenses for three to seven years. In Michigan, a DUI will stay on your driving record for two years, but remains on your criminal record forever. Also remember that in Michigan, if you are busted for drunken driving while on a snowmobile or off-road recreational vehicle, the offense goes on your driving record.

You will probably need your insurance company to file an SR-22 form to get coverage after a DUI conviction if your license was suspended. An SR-22 is a form your insurer files with the state to prove that you are carrying the legally mandated car insurance needed to drive in the state.

The average rate increase in Michigan for a DUI is super steep -- 176 percent a year, according to a CarInsurance.com analysis of data commissioned from Quadrant Information Services. While you will certainly pay more, you can still save by shopping for the insurer with the lowest rate for drivers with a DUI.

Michigan DUI car insurance rates by company 


Clean driver rate

DUI rate

Dollar increase

% increase

Company 1





Company 2





Company 3





Company 4





Company 5





*The table shows the annual rate for Dearborn ZIP code 48120 from the following carriers, in no particular order: Progressive, Allstate, State Farm, Nationwide, GEICO and Farmers. One company refused coverage for a DUI.

Largest car insurance companies in Michigan by market share

Rank Company / Group Direct Premiums Written ($) Market Share (%)
1 State Farm Group 1,383,516 18.96
2 Auto Club Group 1,247,101 17.09
3 Auto-Owners Insurance Group 706,162 9.68
4 Allstate Insurance Group 682,826 9.36
5 Progressive Insurance Group 594,572 8.15
6 The Hanover Insurance Group Property & Casualty 455,390 6.24
7 MI Farm Bureau Group 328,893 4.51
8 Liberty Mutual Insurance Companies 279,402 3.83
9 Farmers Insurance Group 210,770 2.89
10 Berkshire Hathaway Insurance 193,160 2.65
Source: A.M. Best market share rankings are based on direct premiums written in 2013.