Michigan Car Insurance Laws

Car insurance is no laughing matter. Everyone on the road needs to be insured, or face heavy penalties should they be pulled over, have an accident or break down. In Michigan, you are required by law to be insured if you’re operating a motor vehicle. Right now is the best time to compare car insurance. Enter your ZIP code into our car insurance comparison tool for a FREE quote. Don’t wait, get yourself insured today.

To know what insurance you need, you should know the local laws. Michigan laws for motor vehicle insurance are strict and complicated. Some coverage is required, while other additional aspects of car insurance aren’t. Michigan is one of the few states with no fault auto insurance laws. Enter your ZIP code into our FREE car insurance comparison tool to find rate quotes now!

Drivers and Insurance Rates

Michigan auto insurance providers have the right to ask you to list the members of your household before they insure you. This allows them to access the driving records of other people in your household who may be able to drive your vehicle. This affects the rating process and can affect your car insurance quotes cost.

You have the right to exclude household members from your insurance if you are absolutely certain they will never be driving your vehicle. However, if they do drive your vehicle and are in an accident, they will not be covered if you exclude them.

No Fault Auto Insurance

No fault auto insurance means that in a collision, neither party is at fault. This avoids complicated legal battles that are expensive and tie up the court system. However, this also means that the insurance company pays for any injuries caused by the collision, regardless of fault. The negative side is that it does not pay for damages to a vehicle.

Mandatory Coverage

In Michigan a driver must have both residual body insurance and property damage liability insurance. They are required by state law. Bodily injury coverage should be between $20,000 and $40,000 minimum.

Property damage is required to be above the minimum of $10,000. Coverage beyond these limits is not required, but may be helpful in the case of an accident.

Michigan law also requires that you have PIP coverage, or Personal Injury Protection coverage. PIP coverage is insurance that covers medical bills and potential lost wages caused by injuries related to an accident.

When you have auto insurance in Michigan, you are required to keep your certificate of insurance in the vehicle with you when you drive. Regardless of whether or not you are insured, if you cannot show proof to an officer of the law when they ask, you may be subject to penalties up to and including suspension of your driver’s license. You will be required to go to the Secretary of State office and show proof of your insurance, as well as pay a fine, before you can renew your plates and your license.

Additional Coverage

Drivers in Michigan are able to include additional coverage if they desire. The guidelines above are the absolute minimum that are required by state law. Vehicles that are under a lease or are under warranty may be required to have additional coverage as part of the terms of the agreement.

One other possible type of coverage a driver may want is Uninsured or Underinsured coverage. This coverage pays for damages that exceed the amount standard insurance covers. It also covers collisions with drivers who are uninsured.

Collision coverage is another option. Collision coverage pays for damages to your vehicle that are not covered by standard personal injury insurance.

Additionally, another option is Comprehensive coverage. Comprehensive coverage also covers “acts of God” such as fire, vandalism, floods or weather damage. With Collision and comprehensive coverage, a driver is more protected against possible damages.

Rental Vehicles

All registered vehicles, including rented vehicles, must be insured with the minimum liability insurance coverage listed above. If they drive on Michigan roads, they follow Michigan laws. In most cases, your standard auto insurance will cover this. In others, your credit card company will be able to help. Check with the rental company for your specific situation.

Insurance Overlap or Lapse of Insurance

If you at any time allow your insurance coverage to lapse without payment, you will be considered to be driving without insurance. If this is the case and you are pulled over, you will be subject to all the same penalties involved with driving without insurance, including fines and license suspension. If you are driving your vehicle, you must be insured.

If you are switching providers, talk to them about specific procedures for ending coverage. In some cases you may end up with overlapping coverage. This is preferable to a span of time without insurance.

Insurance Calculations

In the state of Michigan, it is legal for insurance companies to check your personal credit history when determining your rates. They do not consider your credit history in a vacuum, nor do they always use it. It is one of many factors that determines your coverage costs, including age, race, home location, how much you drive, prior coverage and vehicle specifics.

Obtaining Auto Insurance Coverage

There are a number of different insurance companies for you to choose from. Some of them are large national chains, while others are local companies. Every person will have a different experience with any given insurance company. To choose the company that is right for you, it’s best to get FREE insurance quotes with your ZIP code in our comparison tool.

When you get quotes from multiple agencies it is easy to compare each of them. The key is to strike the right balance between coverage and costs. Get your FREE quotes today by entering your ZIP code into our comparison tool.