Finding cheap car insurance in Michigan has become easier following the state's 2020 no-fault insurance reforms. Michigan previously had the highest auto insurance rates in the nation, but recent changes now allow drivers to choose their level of PIP coverage, potentially saving hundreds annually.
Michigan's reformed insurance market offers new opportunities for savings. Understanding Michigan car insurance options under the new system helps you find the best coverage at competitive prices.
Michigan Car Insurance Requirements
Michigan requires minimum liability coverage of 50/100/10—$50,000 per person, $100,000 per accident for bodily injury, and $10,000 for property damage. Under the reformed system, drivers can now choose from several PIP coverage levels, from unlimited down to opt-out (if you have other health coverage).
The ability to choose lower PIP coverage is the biggest factor in finding cheap car insurance in Michigan. Previously, unlimited PIP was mandatory.
What Affects Michigan Car Insurance Rates
Your location within Michigan significantly impacts your car insurance rates. Detroit has historically had the highest rates due to accident frequency and uninsured drivers. Rural areas and smaller cities have much lower premiums.
Your PIP coverage selection is now the biggest factor in Michigan auto insurance pricing. Choosing a lower PIP level can save hundreds or even thousands annually.
How to Save on Michigan Auto Insurance
Comparing quotes with different PIP levels is essential for finding cheap car insurance in Michigan. If you have good health insurance, you may be able to coordinate coverage and reduce your auto insurance costs significantly.
Take advantage of Michigan's discount opportunities including safe driver, multi-policy, good student, and anti-theft discounts. The state's new rate comparison tools can also help you find competitive quotes.