Michigan Minimum Coverage Car Insurance: Requirements and Costs (November 2024)

Name: Michigan Minimum Coverage Car Insurance: Requirements and Costs (November 2024)
Item: Michigan Minimum Coverage Car Insurance: Requirements and Costs (November 2024)
Author: Mark Fitzpatrick

Michigan has minimum liability limits of 50/100/10. The average annual cost for state minimum car insurance in Michigan is $902 or about $75 per month for affordable coverage that meets legal requirements while managing costs.

By Mark Fitzpatrick

Reviewed by Mark Friedlander

Edited by Myjel Guevarra

Updated: October 29, 2024

Advertising & Editorial Disclosure

Michigan's state minimum car insurance requirements include bodily injury liability of $50,000 per person and $100,000 per accident, along with $10,000 for property damage liability per accident. Michigan operates under a no-fault insurance system, meaning your insurance covers your injuries and losses regardless of who caused the accident. Meeting minimum car insurance requirements is crucial for every driver.

The average monthly cost for minimum coverage auto insurance in Michigan is $75. For those seeking affordable options, checking out the cheapest car insurance in Michigan could be beneficial.

TABLE OF CONTENTS

Michigan Minimum Coverage Requirements
Average Cost of Minimum Coverage Car Insurance in Michigan
Cheapest Companies in Michigan for Minimum Coverage
Add-On Coverages in Michigan
Penalties for Driving Without Insurance in Michigan
FAQ

Why Trust MoneyGeek? MoneyGeek analyzed data from Quadrant Information Services and the Michigan Department of Insurance to give you the most accurate cost data for a range of Michigan drivers.

These rates reflect the cost of minimum coverage car insurance requirements in Michigan as of November 2024.

50,284Quotes Analyzed

14Companies Compared

74ZIP Codes

Michigan Minimum Coverage Car Insurance Requirements

To operate a vehicle legally in Michigan, drivers must have minimum coverage auto insurance. The required minimum amounts are:

$50,000 for bodily injury liability per person
$100,000 for bodily injury liability per accident
$10,000 for property damage liability per accident
Unlimited personal injury protection (PIP) per person

The insurance premiums in Michigan are influenced by the state's no-fault system. Under this system, your insurer pays for your injuries or property damage after an accident, regardless of who is at fault, up to your coverage limit. In other words, personal injury protection is a significant part of your auto insurance policy, providing coverage for medical expenses.

ARE COLLISION AND COMPREHENSIVE COVERAGE REQUIRED IN MICHIGAN?

Michigan does not mandate that drivers carry collision or comprehensive insurance as part of their minimum coverage auto insurance. However, if you finance or lease a vehicle, lenders often require both types of coverage to protect their investment in your car. Given that Michigan is a no-fault state, collision insurance can help cover vehicle repair costs regardless of fault, and comprehensive coverage can protect against non-collision incidents.

Therefore, while not legally required, having collision or comprehensive insurance is crucial for drivers who finance their vehicles or seek added protection against diverse risks.

What Does Minimum Coverage Cover?

What Liability Insurance Covers	What Liability Insurance Doesn't Cover
Injuries to others if you are at fault in an accident	Your injuries
Damage to another person’s property if you are at fault in an accident	Damages to your car
Some coverage for injuries caused by uninsured/underinsured drivers, depending on your policy	Property damage caused by uninsured/underinsured drivers unless additional coverage is purchased
	Repairs for weather-related accidents or if you were hit by an animal

The table reflects Michigan's state minimum car insurance requirements, including bodily injury, property damage and personal injury protection. Coverage specifics depend on an individual's policy terms and conditions.

Average Cost of Minimum Coverage Car Insurance in Michigan

Age plays a significant role in the cost of minimum coverage car insurance. In Michigan, drivers aged 22 to 29 face the highest premiums because insurers view them as higher risk with less driving experience.

The table illustrates the average minimum coverage car insurance costs in Michigan for different age groups, highlighting the annual and monthly premiums for each category:


22-29	$995	$83
30-59	$902	$75
60 +	$904	$75

Cheapest Companies for Minimum Coverage Car Insurance in Michigan

Michigan residents seeking budget-friendly minimum coverage auto insurance can find the most affordable options with the following providers:

Westfield: $416 per year; $35 per month.
Travelers: $421 per year; $35 per month.

Selecting an insurance plan is a significant decision. While affordability is a key factor, ensuring that coverage meets your specific needs is also important when looking for the best car insurance options in Michigan.

Data filtered by:Results filtered by:

Age Group:

Age Group:30-59


Westfield	$416	$35
Travelers	$421	$35
Encompass	$577	$48
Chubb	$612	$51
Progressive	$614	$51
GEICO	$630	$52
Auto-Owners Insurance Co	$658	$55
Farm Bureau Ins of MI	$871	$73
Grange Insurance	$951	$79
Pioneer State Mutual Ins Co	$953	$79
Farmers	$1,295	$108
State Farm	$1,473	$123
Hanover	$2,257	$188

Optional Add-On Coverages in Michigan

Available optional add-on coverages in Michigan include comprehensive, collision, uninsured/underinsured motorist coverage and roadside assistance. These extra protections can be beneficial for all drivers because they provide financial security against various unforeseen events like theft, accidents with drivers lacking sufficient insurance and vehicle breakdowns. Understanding how much car insurance you need can help determine the value of these additional options beyond minimum coverage.

Add-On Coverage	What It Covers	What It Doesn't Cover
Uninsured/Underinsured Motorist Coverage	Medical expenses, lost wages and repair costs if you're hit by a driver with no or insufficient insurance.	Damage to your vehicle if you are at fault or damages that exceed policy limits.
Personal Injury Protection (PIP)	Medical expenses, lost income and funeral costs for you or your passengers, regardless of who's at fault.	Vehicle damage or injuries to the other driver.
Roadside Assistance	Services like towing, flat tire changes and jump-starts when your car breaks down.	Cost of parts or repairs needed after the tow.
Gap Insurance	Pays the difference between your car's current value and what you still owe if it's totaled or stolen.	Vehicle depreciation or overdue loan payments.
Rental Car Reimbursement	The cost of a rental car while your vehicle is being repaired after a covered event.	Fuel, insurance or other rental extras.
Collision Coverage	Repairs to your car after an accident, regardless of fault.	Damage due to theft, vandalism or natural disasters.
Comprehensive Coverage	Repairs to non-collision damages from events like theft, fire or hail.	Damages from a collision or personal injuries.
Towing and Labor Coverage	Towing and basic roadside assistance labor costs at the vehicle's breakdown site.	More extensive repairs needed at a garage.
Custom Parts and Equipment Coverage	Safeguards aftermarket enhancements like custom wheels or stereo systems.	Original parts that came with your vehicle.
Accidental Death Coverage	Offers a payout if you or a passenger dies or experiences certain injuries in a car accident.	Non-accidental death or injuries.
Classic Car Insurance	Agreed-upon values for your unique vehicle, tailored for vintage or collector cars.	Regular use, like your daily commute.

Penalties for Driving Without Insurance in Michigan

The cost of a ticket for driving without insurance in Michigan can vary depending on whether it's your first offense or if you've been caught without coverage before. If you're caught driving without minimum coverage car insurance for the first time, the fines can be substantial. But for those with a history of driving uninsured, penalties are often more severe, reflecting the repeat nature of the offense.

Additional consequences for driving without insurance in Michigan may include:

Vehicle impoundment: Your vehicle may be held somewhere, so you may need to pay fees to retrieve it.
Suspension of vehicle registration: The state may suspend your car's registration.
License suspension: Your driving privileges may be taken away for a period.
Requirement to file an SR-22: You could be mandated to carry this certificate as proof of future financial responsibility.

Abide by Michigan's car insurance laws. Driving without insurance carries significant risks, including legal penalties and financial vulnerability in the event of an accident. Ensure your vehicle is covered by at least the minimum coverage to stay on the right side of the law and protect yourself and others on the road.

What to Do if Your Policy Is Canceled

If your car insurance policy is canceled in Michigan, secure new coverage immediately. Continuing to drive without insurance is illegal and risks significant penalties. The best course of action is to reach out to your insurance agent or another insurer promptly to discuss your options.

The Michigan Department of Motor Vehicles (DMV) will be alerted if your insurance lapses since insurance companies are required to report policy status changes. You should expect to receive a notification and possible penalties for not maintaining the state minimum coverage.

To ensure you are legally covered, explore all available options, including different insurance carriers who may offer state minimum policies to drivers with varied driving records or coverage histories. The state of Michigan doesn't have a specific program for hard-to-insure drivers. However, you can use the Michigan Automobile Insurance Placement Facility (MAIPF) as a last resort to obtain necessary coverage. Driving without at least state minimum car insurance in Michigan exposes you to the risk of severe legal consequences.

WHY WAS MY POLICY CANCELED?

Your car insurance policy in Michigan may have been canceled for several reasons:

Non-Payment of Premium: Your insurance provider can cancel your policy if you miss payments.
Fraud or Misrepresentation: Giving false information or hiding facts can lead to cancellation.
License Suspension: If your driver's license is suspended, an insurer might cancel your policy.
Too Many Claims: Filing too many claims in a short period can result in cancellation.
High Risk: If you're deemed too high risk due to traffic violations or accidents, your policy might be canceled.

FAQ: Michigan Minimum Coverage Car Insurance

We answer your most pressing questions about Michigan's minimum car insurance requirements.

What is the minimum car insurance coverage in Michigan?

In Michigan, the minimum car insurance coverage includes $50,000 for bodily injury per person, $100,000 for bodily injury per accident and $10,000 for property damage per accident. Michigan also requires personal injury protection (PIP) with unlimited coverage. Unlike many other states, Michigan does not mandate uninsured/underinsured motorist coverage or medical payments coverage as part of its state minimum auto insurance. The required limits ensure that drivers are adequately protected in the event of an accident.

Why does Michigan require minimum automobile liability coverage for motorists?

Michigan mandates minimum coverage auto insurance to ensure that motorists can cover the costs of damages or injuries they may cause in an accident. This financial responsibility requirement protects the policyholder, other drivers, pedestrians and property owners from bearing the full brunt of expenses resulting from a collision.

Do you need comprehensive insurance in Michigan?

Michigan law does not mandate comprehensive insurance for drivers. This optional coverage can protect you against non-collision-related damage such as theft, vandalism or natural disasters. It's worth considering if you want to ensure your investment in your vehicle is safeguarded against a wide array of potential damages.

What happens if you drive uninsured in Michigan?

Driving uninsured in Michigan results in significant penalties, including fines of up to $500, driver’s license suspension and possible vehicle impoundment. Repeat offenses can lead to even harsher consequences, like community service. Maintain at least state minimum coverage to comply with the law and protect yourself against these risks.

About Mark Fitzpatrick

Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.

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