Finding affordable car insurance in Michigan, especially in Detroit can be very challenging. This is a huge problem, since Michigan motorists are paying about 60% more for their liability insurance than the average U.S. state. Detroit's average annual car insurance premium of cca $10,270 is definitely the most expensive among large U.S. cities. It means, that drivers in Detroit (and in other Michigan's cities) are paying $855 a month! This little guide should help you determine which companies offered the most affordable auto insurance quotes in Detroit, Michigan. Let the insurance company know about all the safety features in your car and reward you for driving safely.
No-fault car insurance is required in Michigan.
No.1 problem? The Michigan state requires all drivers to have no-fault car insurance (PIP, PPI, BI/PD), which covers injuries and damages caused in a traffic accident regardless of who is at fault. Why? The Michigan no-fault system was adopted in 1973 to increase the level of benefits paid to injured persons. Brief explanation of Michigan no-fault insurance (pdf)...the law is constantly changing :) Michigan's basic (non-premium) no-fault auto insurance includes:
- Personal injury protection (PIP) - this coverage will pay your medical expenses (merge it with your health insurance) from injuries that you might suffer from a car accident
- Property protection (PPI) - your insurance company will pay up to $1 million for damages to other people's property
- Residual bodily injury/property damage liability insurance (BI/PD) - residual liability insurance covers normal liability for any type of car accident occurring outside of Michigan. It means, if you cause a car accident in another state, you are still covered!
- A consumer's guide to No-Fault automobile insurance in Michigan (PDF)
Although you may purchase advanced coverage with higher limits, the minimum no-fault policy coverage in Michigan covers:
- Up to $20,000 for a person who is hurt or killed in an accident
- Up to $10,000 for property damage in another state
- Up to $40,000 for each accident if several people are hurt or killed
Michigan drivers deserve affordable insurance premiums!
There is no-fault reform plan which would - probably - provide major insurance rate cuts for drivers in Detroit, Michigan. Everything you need to know about Michigan no fault reform is described on this "attorney" website. The Department of Insurance and Financial Services (DIFS) is the main organ in Michigan (valid also for Detroit) which has the responsibility and rule making authority over licensing, evaluation, and regulation of the insurance and financial industries. The study - published by Coalition Protecting Auto No-Fault - has explored, that blue-collar (manual workers in industry) Michiganders are paying more for car insurance in Detroit, Ludington, Warren, Howell, Flint and other Michigan's cities. More at protectnofault.org.
Why it's so hard to get cheap car insurance in Detroit?
Most Detroit (Michigan) drivers probably tend to buy the lowest amount of coverage possible. According to some 2017 studies, insurance rates in Detroit, MI have increased to $185 monthly and $2220 yearly. So, where is the problem? Well, above mentioned prices of basic liability insurance are real, but only for some Detroit residents. There is different study, where you can see that the average car insurance premium for Detroit and closest cities is much higher. Some residents opting for liability, collision coverage, and comprehensive insurance was over $650 a month for men (almost the same for woman), cca $7800 yearly.
Michigan car insurance requirements (limits)
|Michigan state law requires the following||coverages|
|Minimum bodily injury liability||$20,000/$40,000|
|Minimum property damage liability||$10,000|
|Property protection insurance (PPI)||$1 million|
|Personal injury protection (PIP)||Medical + work loss|
Cheap car insurance for young (18-25 year old) drivers
- Aged 18 to 24 = $220 / $2640 and more
- Aged 25 to 34 = $170 / $2040 and more
- Aged 35 to 44 = $185 / $2220 and more
- Aged 45 to 54 = $199 / $2388 and more
- Aged 55 to 64 = $174 / $2088 and more
Credit score & auto insurance rates in Michigan?
Who has the best car insurance for drivers with poor credit?
It is no secret, that lower credit score correlates with a higher insurance rates. Drivers with poor credit (financial history) pay higher auto insurance rates in most states, not only in Michigan. People with credit problems pay almost $1,500 more per year. In Detroit even more. When you apply for car insurance in Detroit (Michigan) or any other US state, insurance companies can look at your credit score (history) to help them setup your car insurance rates.
|National ranking||State||Poor credit rates|
|4||District of Columbia||$1,325 /year|
|5||New Jersey||$1,190 /year|
Cheap car insurance for drivers in Michigan with one at-fault crash
Michigan and Detroit city is known for having the highest car insurance rates in the country and comprehensive no-fault insurance system in the United States. Personal injury protection (PIP) is required for medical expenses regardless of who is at fault in an car accident. Finding cheap and suitable car insurance for drivers with tickets or traffic accidents is not easy. Auto insurance companies don't like customers (drivers) with automobile accidents, traffic violations and speeding tickets on their driving record. In some states - and cases - you can get car insurance even with a suspended license. Michigan’s no-fault insurance law only permits lawsuits against an at-fault drivers! Do not forget to contact your states DMV (Department of Motor Vehicles) for more details.
|Insurance Company||Yearly Rate||Insurance Company||Yearly Rate|
|Pioneer State Mutual||$2,045||Allmerica||$3,387|
|Auto Owners||$2,229||Farm Bureau||$3,760|
|Auto Club Group||$2,863||Encompass||$5,296|
|Hanover||$2,909||All prices are||indicative only|
- Patrick M. McPharlin, Director
- (Midwest Zone)
- Department of Insurance and Financial Services
- PO Box 30220
- Lansing, Michigan 48909-7720
- Phone: 517.284-8800
- Fax: 517.284-8844
- Street Address:
- Mason Building, 8th Floor
- 530 W. Allegan Street
- Lansing, Michigan 48933
Department of InsuranceTo request professional legal assistance with an insurance question or file an insurance-related complaint online, please visit website of licensed in your State.
Ask for better quotes - onlineThe states with the cheapest car insurance has average rates for this vehicle around $450 dollars, and the states with the most expensive rates are around $3.300 a month/year. The right discount can save you hundreds of dollars off your car insurance bill. Auto insurance companies in Michigan, Detroit, Ludington use rating factors, to determine how much to charge you for coverage. These rating factors include: the make, model and year of your Toyota, Ford, Honda and similar vehicles.
Myths about car insuranceHow much do you pay to insure your Toyota, Ford, Honda? Car insurance rates among states vary widely and insurance companies need to figure out if the applicant is too risky for them to insure. Auto insurance is very expensive, probably one of the most costly part of driving. How much do you pay for your policy in Michigan, Detroit, Ludington? 1500$? More or less?
Minimum insurance requirements
The minimum amounts of BI/PD insurance you must carry in Michigan are:
- $20,000 for injuries or death to an individual.
- $40,000 for injures or death per accident to multiple people.
- $10,000 for property damage in another state.