Michigan Car Insurance Guide – How to Find the Best Michigan Auto Insurance Policy


All drivers in Michigan need to find the best auto insurance. You can find the Great Lakes within 85 miles of your home no matter where you live in Michigan. Make sure to have the right car insurance if you plan on spending a day at Michigan’s beaches or driving around Michigan.

Michigan is a state that is no-fault. This means that your car insurance company will cover your injuries, regardless of fault, up to a certain amount. Other person in an accident will be covered by their car insurance policy.

A no-fault system provides you with a quick and complete payment. No matter who is at fault for an accident, your medical expenses and lost earnings will be covered.

Michigan’s no fault laws have another advantage: despite rising costs for car damage repairs and medical expenses, the system continues to work without any rate increases. Some other states have adopted Michigan’s no fault system as an example.

Michigan law requires that you have insurance for your car. In Michigan, you can’t use out-of-date insurance or other no-fault state insurance to insure a car which is going to be registered there.

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Michigan law requires you to have Bodily Injury Liability coverage up to $40,000 for each injured person. While you must have Property Damage Liability coverage of at least $10,000 in Michigan, it does not necessarily cover injuries that occur outside of Michigan. You might consider adding additional insurance if you travel a lot or plan to drive out of state.

Personal Injury Protection (or PIP) coverage is also mandatory. Personal Injury Protection covers you and your passengers for any reasonable and necessary medical expenses as well as wage loss. The maximum monthly amount is $4,400. This coverage covers lost wages for three-years. Personal Injury Protection includes $20 per day to cover funeral and burial expenses, survivor’s losses benefits, replacement services benefits, and up to $20 per month to pay for services that you are unable to perform. In the event of a death from a car accident, the dependents will receive the benefits. Michigan law requires that you have Personal Injury Protection coverage at least $10,000. However, it is possible to increase this amount.

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Michigan law requires you to have Residual liability car insurance coverage. This coverage provides minimum protection in the event that you are sued or held responsible under certain circumstances. If you are in an accident that results in death, serious impairment of bodily functions, permanent, severe disfigurement, or serious injury, Residual Liability will cover you. You will also be protected if you are involved in an accident that results in a loss greater than your Personal Injury Protection limits or in an incident that occurs outside of Michigan for personal injury and property damage.

It might be worth considering buying more Residual liability car insurance. The minimum requirements are $20,000 to cover one person’s injuries and $40,000 for all people injured in an accident. Property damage is $10,000.

Michigan law also requires that you always have proof of insurance. Your driver’s license may be suspended if you fail to show proof of insurance in the event that you are pulled over, or involved in an accident. You might want to keep proof of insurance in your glove box of every vehicle you own.

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Although not required in Michigan, it may be a good idea to carry collision, comprehensive, uninsured/underinsured motorist, extra equipment coverage, road service, and car rental coverage.

There are three types of collision coverage. Standard coverage covers damage to your vehicle, regardless of fault. However, you are responsible for paying your deductible. You will be responsible for your deductible if you are more than 50% at fault. Broad collision coverage will pay regardless of fault. You are only responsible for less than 50% of any accident, and limited collision coverage covers the vehicle’s damage. If you wish to lower your car insurance premium, you can choose to increase your deductible.

Comprehensive coverage covers any damage to your vehicle that is not due to an accident, such as fire, theft, or vandalism.

Uninsured/underinsured coverage will pay you what your are legally entitled to collect for injuries caused by an underinsured or uninsured driver.

Road service covers roadside assistance like towing and flat tire repair.

Additional equipment coverage increases coverage limits for spoilers and other attachment parts that are not installed by car manufacturers.

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If your car is damaged or out of service, car rental coverage will pay for the rental or reimburse you. To ensure you are fully informed about the limits of this coverage, speak to your Michigan car insurance agent.

It is a good idea also to check your Michigan car insurance annually to ensure it meets your needs.