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Here you will find out everything you need to know to buy car insurance in Michigan. We provide average Michigan auto insurance rates for your neighborhood. You’ll also learn how much car insurance you need for your particular situation. That means you’ll know what to expect when shopping for auto insurance in Michigan – and you won’t overpay for it. You'll also see rates for the following:

Cheap car insurance for full coverage and for liability in Michigan

  • Low-cost auto insurance for drivers with tickets
  • Companies ranked from cheapest to most expensive for drivers with accidents
  • Cheap car insurance for drivers with bad credit
  • Ranking of the best car insurance companies for Michigan drivers

Key Highlight:

  • Average rates for three coverage levels and six age groups by ZIP code
  • Rates and savings by coverage level and company
  • Average increase to rates for accidents, tickets, bad credit
  • Best Michigan car insurance companies based on the customer satisfaction survey

How Much is Car Insurance in Michigan?

The average car insurance rate in Michigan is $3,141 a year for a full coverage policy with a $500 deductible, or about $262 a month. The severity and frequency of claims in your neighborhood, your driving record, the type of car you drive, your credit and other variables are used by insurance companies to figure out the cost of your policy. That’s why the price for the same coverage can vary by hundreds, sometimes thousands, of dollars among insurance companies. Enter your ZIP code, age, gender and preferred coverage level to see the average car insurance rate for your neighborhood. You will also see the highest and lowest rates from up to six major carriers surveyed to get an idea of what the most affordable car insurance price is in your area.

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 48226 in Detroit has the highest average annual rate in the U.S., at $6,329. 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 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 and provide average car insurance rates for your area so you can compare costs. We also explain Michigan car insurance laws.

Michigan Car Insurance Rates by ZIP Code

Enter ZIP for average rate. Then enter Age, Gender and Coverage Level for customized rate.
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COVERAGE TYPES
*Please enter valid Zip
State Minimum: Required liability coverage to drive legally in your state; some states mandate additional coverage, such as personal injury protection, uninsured motorist, underinsured motorist.Liability Only 50/100/50: $50,000 per person/$100,000 maximum per accident for bodily injury; $50,000 for property damage. Liability pays for injuries/damage you cause others.Full Coverage 100/300/100: $100,000 per person/$300,000 maximum per accident for bodily injury; $100,000 for property damage; comprehensive and collision coverage with $500 deductible. Liability pays for injuries/damage you cause others. Comprehensive and collision pay for damage to your car.
48227 Detroit
For  30  Year Old   Male  (Type:  Liability - Minimum )
Average Monthly Premium
$367
Highest Rate $625/mo.
Lowest Rate $149/mo.
Compare personalized quotes from up to 20 companies in Michigan now
MOST & LEAST EXPENSIVE ZIP CODES in Michigan
MOST EXPENSIVE PER MONTH
48206 - Detroit: $382
48224 - Detroit: $379
48202 - Detroit: $375
48211 - Detroit: $370
LEAST EXPENSIVE PER MONTH
49401 - Allendale: $107
49426 - Hudsonville: $108
49435 - Marne: $109
49464 - Zeeland: $110

The average car insurance rate in Michigan is $3,141 a year for a full coverage policy with a $500 deductible, or about $262 a month. The severity and frequency of claims in your neighborhood, your driving record, the type of car you drive, your credit and other variables are used by insurance companies to figure out the cost of your policy. That’s why the price for the same coverage can vary by hundreds, sometimes thousands, of dollars among insurance companies. Enter your ZIP code, age, gender and preferred coverage level to see the average car insurance rate for your neighborhood. You will also see the highest and lowest rates from up to six major carriers surveyed to get an idea of what the most affordable car insurance price is in your area.

Who has the Cheapest Car Insurance in Michigan?

Geico has the cheapest car insurance in Michigan among companies CarInsurance.com analyzed for three common coverage levels. Allstate was the most expensive. Because Michigan has the highest rates in the nation, it’s wise to be aware of which companies have the most affordable prices.

While Geico has the cheapest auto insurance rates in our analysis, what you pay will depend on your driver profile. Still, you’ll see in the charts below that Geico is about $2,500 less expensive than Allstate for liability policies, and $4,500 cheaper for full coverage. The difference between Geico and the second cheapest, Progressive, is about $300.

CompanyState minimum average annual rate50/100/50 average annual rate100/300/100 average annual rate
Geico Ind Co$704$740$1,453
Progressive Marathon Ins Co$1,029$1,060$1,790
State Farm Mut Auto Ins Co$1,651$1,790$3,032
Allied Prop & Cas Ins Co$2,039$2,112$3,295
Farmers Ins Exch$2,859$2,907$4,728
Allstate Fire & Cas Ins Co$3,235$3,300$6,039

 

Who has the Cheapest Full Coverage Auto Insurance in MI?

Geico has the cheapest full coverage auto insurance in Michigan ($1,453), based on CarInsurance.com’s rate survey.  That’s $1,688 less than the average Michigan car insurance rate for full coverage ($3,141).

Who has the Cheapest Liability Insurance in MI?

The cheapest liability insurance in Michigan comes from Geico. Its average rate for state minimum liability is $704. Geico comes in at $1,151 less than the average Michigan car insurance rate for state minimum coverage, which is $1,855

For liability limits of $50,000 per injured driver, up to $100,000 per accident, with $50,000 in property damage, Geico’s average liability insurance rate for Michigan drivers is $740. When compared to the state average for that coverage level ($1,919), Geico’s rate is $1,179 less.

Cheap Car Insurance in Michigan: Relief is on the Way

While what you pay for coverage depends on your particular circumstances, everyone in Michigan is expected to see cheap car insurance rates in the coming year, compared to costs prior to the new auto reform laws. The new laws go into effect in July. A review of rate filings by the governor and state insurance regulators is showing significant rate reductions.

Under the former law, drivers were required to purchase unlimited, lifetime medical benefits with their auto insurance policy. The new law allows drivers to opt-out, or choose the amount of Personal Injury Protection (PIP) medical coverage to purchase on their policies. PIP covers medical treatment and rehabilitation expenses. It also covers lost wages and in-home help.

Under the new law, there are six levels of personal injury protection available to drivers.  In July, drivers can choose to keep unlimited, lifetime medical benefits, or choose lower levels including $500,000, $250,000 and $50,000. Drivers with health insurance through their employer that covers auto accident-related injuries or Medicare can completely opt-out of medical coverage with their car insurance.

The rate reductions derived from the six recently approved filings are shown below are statewide averages.

PIP Limit Mandated Reduction Avg. Reduction
UnlimitedAt least -10%-16.5%
$500,000At least -20%-36.3%
$250,000At least -35%-41.9%
$50,000At least -45%-54.3%

 

Best Car Insurance in Michigan

Below you’ll see scores for the best car insurance companies in Michigan,  based on a customer review survey of 3,700 customers. Policyholders ranked insurers on claims handling, customer service, value, mobile apps/website usefulness and were asked if they would renew their coverage and if they would recommend the company. All scores are out of 100.

RankCompanyScore
1Auto Club of Southern California (Auto Club Enterprise Insurance Group)92.06
2The Auto Club Group (ACG) - AAA91.00
3Mercury89.50
4USAA89.02
5CSAA Insurance Group87.58
6Liberty Mutual86.93
7Travelers86.00
8The General85.53
9Hartford85.24
10Nationwide85.23
11Metlife85.03
12State Farm83.51
13American Family83.07
14Erie82.89
15Safeco82.00
16Esurance80.79
17Allstate80.73
18Geico80.40
19Farmers80.24
19Progressive78.57

 

Car Insurance Quotes in Michigan

The most effective way to make sure you get the coverage you need at the best price is to compare car insurance quotes. You should do this at least once a year when your policy is up for renewal, but it’s wise to also do a car insurance comparison if you move, buy a car, get married or add or drop drivers from your coverage. At these times your rates may go up or down, so your current carrier may not still be the most affordable. You can save time and money by buying car insurance online. Be sure to compare the same level of coverage among companies, and get at least three car insurance quotes in Michigan.

Largest Car Insurance Companies in Michigan

RankCompanyPremiums WrittenMarket Share
1State Farm Group1,662,96618.56%
2Progressive Insurance Group1,261,15014.08%
3Allstate Insurance Group731,9168.17%
4Liberty Mutual Insurance Companies390,0794.35%
5USAA Group271,1573.03%
6Farmers Insurance Group156,5591.75%
7Berkshire Hathaway Insurance Group131,5101.47%
8Nationwide Group80,8410.90%
9Travelers Group3,2410.04%
10American Family Insurance Group00.00%

Source: A.M. Best; State/Line (P/C Lines)  - P/C, US; Data as of:November 28, 2018

Average Annual Car Insurance Rates for Major Cities in Michigan

Below you'll see how average annual rates for several of the largest cities in the state compare to state and national averages. Rates are for coverage of $100,000 per person/$300,000 per accident in liability and $50,000 of property damage coverage, with comprehensive and collision carrying a $500 deductible.

Show Tablular Data
CityAverage Premium
Ann Arbor$2,643
Dearborn$8,128
Detroit$9,605
Flint$4,968
Grand Rapids$2,756
Lansing$2,849
Livonia$3,580
Sterling Heights$4,757
Warren$5,882
Michigan$3,389
National$1,759

FAQs about auto insurance in Michigan

The best way to find cheap PLPD auto insurance in Michigan is to compare car insurance rates from at least three companies for a policy that meets the state’s minimum liability requirements to drive legally. The acronym “PLPD” is used for the term “personal liability, property damage” insurance. So, it’s another way to describe liability insurance. Geico had the cheapest PLPD auto insurance in Michigan, and Progressive was the second least expensive, among major carriers analyzed by CarInsurance.com.

In some cases, if you’ve been convicted of moving violations such as DUI, reckless driving or driving without insurance, the state will require you to have an SR-22 form on file. An SR-22 is not an actual type of car insurance. The SR-22 is simply a form that your car insurance company files on your behalf with the state. It’s the company’s guarantee to the state that you have legally mandated car insurance coverage.

An SR-22 by itself doesn't raise your insurance rates. Rather, it's the conviction that triggered the requirement that causes your premiums to increase. So, getting cheap SR-22 auto quotes for Michigan drivers is the same process any driver would take to get the most affordable coverage. That means comparison shopping. You’ll see below how insurance companies in Michigan compare for SR-22 policies. This shows that you can still get cheap SR-22 quotes in Michigan by comparing quotes from multiple carriers.

Company Average Rate with SR-22 DUI Filing
Progressive$2,225
Farmers$3,401
State Farm$5,797
Geico$8,692

More About Michigan Auto Insurance

Low Cost Auto Insurance for Michigan Drivers with Recent Accidents

Filing an accident claim means you are likely to pay more for your car insurance coverage. However, how much more you pay depends on several factors, and your car insurance company plays is one of those significant factors. Each company assesses risk differently, so that's why the increase after an accident will vary among insurers. Here is how major carriers compare after at-fault accidents for the average Michigan driver with a full coverage policy:

Company1 At-fault property damage accident over $2K2 At-fault property damage accident over $2kAt-fault bodily injury accident
Allstate F&C$5,819$8,667$5,819
Farmers Ins Exch$3,742$4,207$3,742
GEICO Ind$1,911$3,096$1,911
Progressive Marathon$2,457$3,085$2,457
State Farm Mutual Auto$3,582$4,440$3,582

Who has the Cheap Auto Insurance in Michigan for Drivers with Speeding Tickets?

If you get a speeding ticket, chances are you'll see an increase in what you pay for car insurance, upon your policy renewal. Typically, you'll pay more for three years. But even with a traffic ticket, comparison shopping can save you money. For instance, you'll see that the difference between the highest rate and the lowest in the table below is $4,106, on average, according to CarInsurance.com's rate analysis. That's how much you can save by comparing car insurance companies.

CompanyAverage Rate
GEICO Ind$1,697
Progressive Marathon$2,063
Farmers Ins Exch$3,460
State Farm Mutual Auto$3,868
Allstate F&C$5,803

How Much does it Cost to Add a Teen to your Policy in Michigan?

No matter where you live, adding a new driver to your family policy will hike your rate significantly. In Michigan, you can expect your rate to go up by an average of 163 percent when adding a driver age 16 to your coverage, according to CarInsurance.com rate data. You'll see in the table below how much it costs, on average, to add a teen driver in Michigan, and how major insurers compare on price. Geico had the lowest auto insurance cost for adding a driver age 16 to a full coverage family policy, among insurers surveyed.

CompanyAverage RateAverage Rate after adding female teen$ Increase (female)Average Rate after adding male teen$ Increase (male)
Allstate F&C$3,379$10,343$6,963$10,343$6,963
Farmers Ins Exch$2,807$4,949$2,142$4,949$2,142
GEICO Ind$1,321$2,741$1,420$2,741$1,420
Progressive Marathon$1,751$3,579$1,828$3,822$2,071
State Farm Mutual Auto$2,582$9,228$6,646$9,228$6,646

Cheap Michigan Auto Insurance for Young Drivers: Ages 18 to 25

You’ll see in the chart below which car insurance companies have the lowest rates for young drivers buying a full coverage policy. Average car insurance rates by age data shows that drivers typically pay higher rates until age 26, when rates begin to drop as drivers gain more experience on the road. But even young drivers can save money by comparing car insurance rates to see which company has the lowest rates, by qualifying for student discounts and by staying on their parents’ policy as long as possible.

Senior Drivers: Cheap Auto Insurance for MI Drivers Age 65 to 85

Below you can see average rates by company, and how they compare, for drivers age 65 and over, buying a full coverage policy.

MI Drivers with Bad Credit: You can still save on Car Insurance

Car insurance for drivers with bad credit costs significantly more than it does for those with good credit. Michigan leads the nation among the worst states for drivers with bad credit, as CarInsurance.com's data analysis shows it has the fourth highest percentage increase for bad credit drivers. Compared to good credit drivers, those in Michigan with bad credit pay 167 percent more, on average. The good news is that you can still shave some money off your coverage costs if you compare car insurance companies. You'll see below that the difference among major insurers is nearly $1,665 for a full coverage policy for a driver with bad credit. That's how much you can potentially save by comparing car insurance quotes.

CompanyPoor credit
GEICO Ind$2,128
Progressive Marathon$3,320
State Farm Mutual Auto$7,232
Farmers Ins Exch$8,511
Allstate F&C$10,386

Michigan Car Insurance Laws & Requirements

Minimum bodily injury liability$20,000/$40,000
Minimum property damage liability$10,000
Personal injury protectionMedical and work loss
Property protection insurance$1,000,000

Until auto reform goes into effect in July, Michigan car insurance laws mandate that drivers carry minimum liability coverage limits of 20/40/10 on their vehicle.

Michigan laws also mandate that you have Property protection insurance (PPI). It 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.

Personal injury protection (PIP) is also required. It 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. And, it’s true that In Michigan, your bodily liability insurance will typically not be triggered for claims due to the payouts 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 Michigan.

Increasing your insurance from the state minimum to full coverage with a $500 deductible costs, on average, $1,286 more, or $107 a month. Boosting liability limits without getting optional coverage costs just $64 a year, or just about $5 a month,  as you’ll see in the chart below. That’s because insurers in Michigan typically consider drivers carrying higher limits to be less accident-prone.

Coverage limitsAverage annual rate
Liability Only - state minimum$1,855
Liability Only - 50/100/50 BI/PD$1,919
Full Coverage - 100/300/100 BI/PD $500 Comp/Collision deductible$3,141

Recommended Car Insurance Coverage

If you have few assets or you have an old car, you may want to buy cheap Michigan auto insurance. But keep in mind that even a minor accident will typically cost more than what your insurance policy will pay out if you carry just the coverage required to drive legally in your state.

Use our How Much Car Insurance Do You Need? tool to get a recommendation.

Liability

If your net worth is:

  • less than $50,000, choose at least 50/100/50
  • between $50,000 and $100,000, choose at least 100/300/100
  • more than $100,000, choose at least 250/500/100

If you're leasing or financing your car, you must get coverage of 100/300/100 or higher.

Collision and Comprehensive

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.

Collision pays for damage to your car from an accident. The average yearly cost for collision coverage in Michigan is $921, according CarInsurance.com rate data.

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.

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 $243. If your car is:

  • less than 10 years old, you should strongly consider buying collision and comprehensive.
  • more than 10 years old, only buy collision and comprehensive if your car is worth $3,000 or more, if you couldn’t afford to replace your car if it’s wrecked, or if you just want more protection on your policy.

If you buy comp and collision, check our guide to choosing a deductible amount.

Uninsured/Underinsured Motorist

These coverages are optional in Michigan and should match the liability limits you choose. Uninsured motorist coverage and underinsured motorist coverage pays for damages if you’re hit by a driver with no insurance or a driver with coverage that’s insufficient to pay for your repairs and medical expenses.

Medical Coverage (MedPay)

Medical payments coverage can help pay for the medical or funeral expenses of covered drivers and passengers after an accident, regardless of fault, up to $25,000. MedPay is optional in Michigan, and because you’re required to carry PIP, MedPay isn’t a must-have. The benefits of adding MedPay are that it covers passengers who don’t have health insurance and there is no deductible

MedPay does the following:

  • Covers you and your passengers’ medical expenses
  • Pays for expenses after health insurance limits are exceeded
  • Offers additional protection to insured drivers who are hit by a car while walking or biking

Gap Insurance

If you don’t own your car outright and have an accident, gap insurance pays the difference between the cash value of your car and the current outstanding balance on your loan or lease.

  • If you’re financing your car, your car is less than one year old and you’ve put less than 20 percent down on it, you should buy gap insurance. If not, you don’t need gap insurance.
  • If you’re leasing your car, it’s a good idea to buy gap insurance if you aren’t already required to in your lease agreement.
  • If you own your car outright, you don’t need gap insurance.

Michigan Car Insurance Laws and Stats

Michigan Roads with the most Fatal Accidents

Here are the highways and roads where the most fatal accidents happened in 2017, according to the most recent data available from the Fatality Analysis Reporting System research compiled by the National Highway Traffic Safety Administration:

RoadsNumber of Fatal Accidents
I-9425
I-7521
US-13116
US-2315
US-24 TELEGRAPH RD13
I-6913
I-9612
US-318
US-1278
SR-407

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.

Michigan Catastrophic Claims Association Fee

The Michigan Catastrophic Claims Association (MCAA) was created in the late 70s to help pay for auto claims under the state's unlimited no-fault law. 

For each Personal Injury Protection (PIP) medical claim paid in excess of a set amount -- currently $555,000 -- car insurance companies are reimbursed by the MCAA.  That means that the insurance company pays the entire claim, but is reimbursed by the MCCA for medical costs over $555,000.

All auto insurance companies operating in Michigan are assessed to cover the catastrophic medical claims occurring in Michigan. Those assessments are generally passed on to policyholders. 

While this fee jumped to $220 last year, it’s dropping to a much more affordable $100 on July 2, 2020.

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.

Michigan Auto Reform Goes into Effect in July

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. But all that has changed with recently passed auto reform legislation.

However, that trend may change as new car insurance legislation starts to take effect for policies renewed or issued as of July 1, 2020. While the new law covers a lot of ground, here are a few of the basics:

Michigan drivers will no longer be required to purchase unlimited no-fault Michigan PIP benefits. Auto insurance policies issued or renewed after July 1, 2020 will allow drivers to choose between the following no-fault medical benefit coverage levels, which is supposed to result in the listed rates reduction until July 1, 2028:

  • $50,000 (if a driver is enrolled in Medicaid) maximum PIP coverage (45% savings)
  • $250,000 maximum PIP coverage (35% savings)
  • $500,000 maximum PIP coverage (20% savings)
  • Continue with unlimited, lifetime PIP coverage (10% savings)
  • Opt out of PIP coverage (100% reduction)

Only drivers on Medicare or a qualifying health insurance plan that covers auto accidents may "elect to not maintain coverage" for no-fault PIP medical benefits for any auto insurance policies issued or renewed after July 1, 2020. Drivers opting out of the PIP system entirely would result in a 100% savings on the PIP portion of the premium but there, or course, would be no PIP coverage if they’re in an accident.

It should be noted that the savings outlined here only applies to the no-fault PIP portion of an auto insurance bill, not the entire bill. While it varies, the PIP portion of an auto insurance bill in Michigan makes up roughly 35 to 45% of the total premium.

Those who are already receiving medical payments due to an injury from an auto accident will continue to receive their current unlimited benefit regardless of what choice they make on future car insurance policies.

Another way to try and combat the high medical costs for those claiming for PIP benefits is a new medical fee schedule that goes into effect July 1, 2021 to cap how much insurers are required to pay for medical services and treatments. The hope is to rein in the high medical costs. Having that portion of the law enacted a year after the policy changes are made to the PIP offerings should allow us to gauge how each portion helps Michigan drivers.

Now that Michigan drivers will no longer have unlimited PIP coverage, minimum liability requirements, or how much coverage you need to drive legally, have been raised. This brings the states minimum liability amounts in line with other states. It also better protects drivers who may be sued if they cause an accident resulting in serious injuries or death. The new limits come online on July 1st, 2020. The new limits are 50/100/10:

  • Bodily Injury: $50,000 per person and $100,000 per accident. A "default" residual bodily injury limit of $250,000 and $500,000 will be offered to drivers but drivers are able to choose more or less liability coverage as long as they carry the minimums of $50,000/$100,000.
  • Property Damage: The minimum stays the same at $10,000

In addition to possible rate savings due to different policy offerings, Michigan will also no longer allow insurance companies to use the following factors when setting a premium, again for policies after July 1, 2020.

  • Gender
  • Marital status
  • Home ownership/residential status
  • Education level
  • Occupation
  • Postal zone
  • Credit score

However, insurers will still be able to use payment history from a driver’s credit report and be able to use territories instead of ZIP codes.

The hope is that these changes will drive down Michigan auto insurance premiums. Unfortunately, we’ll have to wait until next year's rankings and beyond to see if they worked.

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.

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

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.