Insurance

Car Insurance in Michigan – Cheapest Car Insurance Company in Michigan

April 2, 2024

Michigan is a state in the United States. Its capital is Lansing, and it is the 10^th largest state by population, with an entire of natural beauty and splendours. As a result of Michigan’s new car insurance law, Michigan drivers have new insurance choices that lower cost insurance options.

The new laws allow Michigan drivers to choose the coverage appropriate for their needs and budget. Michigan is the only state where unlimited PIP medical continues to be an option.

The law also enables them to enjoy a reduction in premium prices and establish a fee schedule between auto insurers and medical providers to control the price of medical providers.

Michigan drivers also enjoy protection as certain driving factors have been prohibited. Thus, insurance companies cannot use sex, homeownership, marital status, and others to increase insurance rates.

Regardless of the new laws, you need car insurance to drive legally in Michigan. This article will open you to Michigan’s minimum requirements, penalties for driving uninsured, and optional coverages.

Michigan Car Insurance Laws

As stated earlier, Michigan car insurance laws are pretty different from the laws in most states because they have their laws, and most importantly, it is a no-fault state operating no-fault insurance.

A No-Fault State

A no-fault state requires drivers to have the proper coverage to protect themselves from injuries and damages sustained from accidents.

In other words, regardless of who is at fault in an accident, nobody is liable for it or expected to pay someone else’s bills.

The general premise for accidents in other states is after any car accident. The driver who is at fault and responsible for the accident gets to pay for the other driver’s or passengers’ injuries.

However, in Michigan, no-fault applies to bodily injuries, not property damages. To protect your vehicle, purchase collision coverage, as the property does not involve cars.

The no-fault component in the state eliminates the need to assign fault to drivers and fight legal battles for the much-needed settlement money.

Car Insurance Coverages in Michigan

Drivers in Michigan prioritize different things when they go car insurance shopping, which may be excellent customer service, a mobile app, or the best coverage deals.

Getting the best coverage deals is usually at the top of the list. Below are some car insurance coverages to consider in Michigan:

Personal Injury Protection Insurance Coverage

This is often referred to as PIP Coverage, it helps you and no one else cover the medical bills during an accident, pays for the funeral expenses of persons covered by the insurance, which includes you, and also goes further to provide when there is a case of a lost income.

There are two variables to the PIP Insurance Coverage in Michigan because no-fault states like Michigan request drivers to have coverage for their bodily injury. Below are the two components of the PIP coverage:

PIP Allowable Expenses Medical (PIP AE Medical) allows you to pay for your care, rehabilitation, and recovery, including some funeral benefits. Choosing the PIP AE Medical limit based on your needs is best.
PIP other Expenses (PIP Other)- this allows you to pay for replacement services, wage loss, and survivor benefits paid to your dependents if you happen to die in an accident.

Property Protection Insurance Coverage

Every driver in Michigan is expected to have property protection insurance as a form of liability coverage.

This insurance coverage can pay up to $1 million for severe damages you cause to the property of others with your car.a

However, the property here does not involve moving vehicles, it has to be buildings, mailboxes, signs, and parked cars.

Bodily Injury Liability Insurance Coverage

Remember, Michigan is a no-fault state; this makes the bodily injury coverage work a little differently in the state.

If you have an accident that leads to injuries or death, you can be sued for it. The only form of protection you can get is if you have bodily injury liability coverage that allows your insurer to pay for the damage.

This coverage can also protect you if you cause an accident outside Michigan.

Property Damage Liability Insurance Coverage

In other states, if you cause damage to someone else’s fence, car, mailbox, and other covered items, your property damage liability coverage will have to be replaced or repaired.

However, in Michigan, property damage liability insurance only comes into play if the accident was caused in another state.

Penalties for Driving Without Insurance in Michigan

There are several penalties for driving without insurance in Michigan. Below are a few of them:

A fine of #200 to $500
Driver’s license suspension
A misdemeanour charges
Jail time of up to one year
Inability to sue other drivers when they are at fault or cause damage to you
Denied plate renewal
Medical expenses and lost wages will no longer be covered for you

The cheapest Car Insurance Company in Michigan

There are many options when you consider cheap car insurance companies in Michigan; some of them include the following:

Progressive with an overall rating of 9.0
USAA with an overall rating of 9.2
Auto-owners Insurance with an overall rating of 8.9
State Farm with an overall rating of 9.4
Frankenmuth Insurance with an overall rating of 7.5

The Cheapest Minimum Car Insurance Coverage in Michigan

All drivers in Michigan are required to have the minimum car insurance coverage. The cheapest providers are listed below:

USAA with an estimated annual rate of $383
Auto-Owners with an estimated annual rate of $500
Pioneer State Mutual with an estimated annual rate of $638
Michigan Farm Bureau with an estimated annual rate of $933

FAQs

How do I Find the Best Car Insurance in Michigan?

To find the best car insurance in Michigan, compare their quotes and choose the best suits your needs and budget.

You can consider the minimum insurance requirements in Michigan and keep them in mind when choosing.

How Much Does Car Insurance Cost in Michigan?

Some factors influence the cost of car insurance in Michigan. Below are some of them:

Your coverage choice
Your vehicle choice
Where you drive
Your driving records
Your insurance score history

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