It is possible that you are shopping for Michigan high-risk auto insurance without realizing. An insurance company considers a high-risk driver anyone who is likely to file an insurance claim in the near future. You may be charged more if you’re a teenager or convicted of a serious offense.
Insurance companies believe that higher rates are appropriate for high-risk drivers. In 2018,, Michigan saw 312,798 crashes, which led to 905 deaths, 55.340 injuries, and 256.553 cases for property damage. This is a large number of claims that insurance companies must process for one state.
Michigan rates for high-risk auto insurance
Insurance companies weigh the risk factors listed below differently. A company might offer a lower increase if it cares less about a certain risk-factor.
Rates for speeding tickets
Your cost increase will be calculated based on the severity of your speeding ticket. However, your driving record will also be considered. Take a look at the table below for an overview of what to expect following a speeding ticket.
The cost differences between companies are not always predictable, as you can see. It may be a good idea to shop around for a lower premium if you have been given a speeding ticket.
Rates for an accident
Although the cost of an accident can increase significantly, the difference that you see could be greater or smaller than what is shown below. The accident’s severity and cause, as well as your driving record, will play a part.
It is important to notice how much the percentage differences between companies can be after an accident. Although some companies might be the most affordable before an accident at fault, it is not true afterwards.
Rates for DUI
Some companies won’t allow drivers to renew their policies after a DUI. You may need to provide proof of insurance by submitting an SR-22 or FR44 form to the DMV. Below is a table that shows the differences in prices between a few providers.
The cost difference is likely to be much higher if you break the speed limit, injures someone while driving, or have multiple DUIs.
Teen drivers: Rate
Michigan teens were involved in 68,684 crashes in 2018. This resulted in 16,583 injury cases, 51,903 property damage cases, and 198 deaths. This is a large number of claims for such a small group. Below is a table that shows how much a 16-year-old driver can add to their parent’s policy.
Many insurance companies offer discounts for students to reduce their premiums. You can find discounts for students away from school, defensive driving classes, and good student discounts. To encourage safe driving, you can also consider driving analytics discounts. Keep in mind, however, that insurance companies may charge more if they don’t like the information you provide.
Who are high-risk drivers?
A high risk driver refers to a driver who is or has had one or more of these:
- Multiple speeding tickets
- At-fault accidents
- Past DUIs
- Insurance coverage gaps
- Teenage driver
Insurance companies might believe that having at least one trait in this list means you are likely to make a claim soon, so they may charge more for Michigan high-risk car insurance.
A high-risk driver is someone who cannot get a policy with their preferred carrier. This is the industry standard definition. Although this might be true, it is not a guarantee that your policy will be cancelled or denied. Often, drivers just need to pay more car insurance.
How to lower your rate for high-risk drivers
Michigan high-risk insurance can be expensive, but there are ways you can lower it.
- Compare rates: Insurance companies have different rates. This means that switching providers may not result in you being penalized as severely.
- Compare discounts: Discounts can be found across all national providers, with many even offering the exact same one. While two companies might offer the same discount, one company may offer greater savings.
- An older car is more affordable to insure than a newer one. You can save the most money by buying a car that has a high safety rating. This is possible to pair with discounts such as anti-lock brakes and daytime lighting.
Questions frequently asked
Which is the best auto insurance company?
Your needs and your goals will determine which company is best for you. Our Best Car Insurance Companies for 2021 page contains our selections based upon coverage options, average rates, and customer service.
What is the average price of car insurance?
The average cost for car insurance in the United States is $1,674 for full coverage or $565 for minimal coverage.
Michigan’s average is $2,309 for a full meal and $948 for a minimum.
Which Michigan car insurance company is best?
We reduced it to Geico USAA, Progressive Auto-Owners, State Farm, and USAA. To find out why, please read Best Michigan car insurance 2021.