Michigan Auto Insurance: 3 Things to Know Before Comparing Auto Insurance Rates in Michigan
Whether you are moving to Michigan, or are planning on driving for the first time you are going to need to purchase Michigan auto insurance. The key facts you need to know about Michigan car insurance:
- Michigan is a no fault insurance state. This means that the party who is at fault's insurance company pays out the claim. That driver is charged higher car insurance premiums as they are a higher risk driver.
- Michigan has some of the highest auto insurance premiums in the United States. This is partially because of Michigan's no-fault insurance laws. Michigan auto insurance switched to no fault policies in hopes of lowering the number of lawsuits filed, and according to many experts lawsuits have indeed decreased. However, a side effect of the no-fault stance has been higher insurance premiums for Michigan residents.
- In terms of minimum coverage, Michigan auto insurance requires: $20,000 coverage per person; up to $40,000 per accident for bodily injury liability; $10,000 of property damage liability; and $1 million worth of personal injury protection. These limits are the minimums and can be increased for an additional fee on your car insurance premiums. Collision and catastrophic insurance are not required in the state of Michigan.
In light of these factors, auto insurance in Michigan is extremely competitive, and many Michigan drivers are able to save money by comparing auto insurance rates.