Best car insurance in Michigan for 2025

Auto insurance in Michigan is required by law, as it is in most states. In Michigan, you must carry at least certain minimum insurance coverage types and limits to drive legally. Because Michigan is a no-fault state, there are car insurance requirements in addition to bodily injury liability and property damage liability coverage; you must also purchase personal injury protection (PIP) and property protection insurance (PPI). Understanding your state’s minimum car insurance coverage requirements might help you determine if you need to buy higher limits to protect your net worth in case of an at-fault accident, as many insurance experts suggest. Higher levels of bodily injury liability and property damage liability offer more financial protection, but usually come at a higher cost to you.

State minimum coverage does not include any physical damage coverage for your vehicle. You would need full coverage car insurance for that. If you have a loan or lease on your vehicle, you might not always be able to choose the cheapest policy available. Your lender will likely require that you carry full coverage, which means adding comprehensive and collision coverage to your insurance policy. It could also mean carrying higher bodily injury and property damage liability limits, as lenders typically require you to carry these higher coverage limits when leasing a vehicle.

You could also consider gap insurance. This coverage is designed to pay for the difference in your new vehicle’s cash value and the balance of your loan or your lease agreement's residual value. Having this coverage might help you avoid financial stress if your vehicle is totaled and the payout is less than what you still owe.

Your driving history, type of vehicle and age are among numerous rating factors auto insurers use to determine your rate. One thing to note, however, is that Michigan bans the use of credit scores as a car insurance rating factor. When shopping for auto insurance in Michigan, consider if you are looking for the cheapest auto insurance rate, a company with digital assets, strong customer service ratings or a wide variety of coverage options. Once you determine what you are looking for, you can get quotes to compare them.

Despite seeing the largest drop in uninsured motorists from 2020 to 2022 in the nation, Michigan has the fifth-highest percentage of uninsured drivers in the nation. According to data from the Insurance Research Council, 19.6 percent of Michigan motorists were estimated to be uninsured as of 2022. Uninsured motorist coverage may be worth considering, as it could help pay your bills if an uninsured driver hits you.

Finding the best car insurance in Michigan for your own unique needs can be as simple as considering what's most important to you. If low cost is your top priority, for example, you may want to look at insurers who are known for writing affordable policies in the state. If excellent customer service is more important, it can be useful to look at J.D. Power rankings for customer satisfaction. Think about your circumstances, too: you may have a teen driver in your household, so a company that offers student discounts may be worth looking at. Or perhaps you have a few marks on your license, in which case a company that writes high-risk insurance policies could work best. Thinking about your priorities can help you find the company that can write the best car insurance policy that is suited to your circumstances.

The cheapest car insurance company in Michigan varies by driver. Personal characteristics like your age, driving record, coverage needs and budget determine which company offers the cheapest rates for you. It’s worth taking the time to compare the same coverage types, limits and deductibles from multiple companies to find which carrier has the best rate without sacrificing the coverage you need. Consider checking quotes at each policy renewal to ensure you continue to pay the lowest rates for the most coverage.

There may be several reasons why car insurance is expensive in Michigan. One is related to the state's no-fault laws. In no-fault states, you generally need more insurance than you do in at-fault, or tort, states. The latter may require only liability insurance, while in no-fault states you also need to purchase PIP coverage. Michigan's relatively high PIP requirements are likely to add to the cost of your car insurance. Drivers also must carry property protection insurance (PPI) of $1 million to pay for property damage you cause with your vehicle, which also drives up car insurance rates. Michigan's severe winter weather may also play a role in high rates. Insurers base rates on the likelihood that you will file a claim. The greater that likelihood, the more you will pay for your policy. Icy streets and winter snow storms may increase the potential for accidents and other incidents.

There are two important auto insurance updates that Michigan drivers should know about. For car insurance policies renewed or issued after July 1, 2020, drivers in Michigan are now able to choose between six different levels of PIP medical coverage. This tiered coverage approach was made into law in an effort to make Michigan car insurance more affordable. Secondly, auto insurers in Michigan are no longer permitted to factor in a policyholder’s credit history, gender, homeownership status, marital status, occupation, ZIP code or education level when calculating their rate.

You can drive in Michigan with out-of-state auto insurance as a visitor. Michigan has many popular tourist destinations, so if you are visiting the Great Lake State, you can do so with the insurance that covers you in your home state. If you move to Michigan, however, you will need to find a policy with a company that underwrites insurance in the state. You will also need new license plates, registration and license. Michigan does not provide a grace period for changing your vehicle title, registration or driver’s license from another state, so be prepared to switch your insurance immediately upon becoming a new resident. Keep in mind that Michigan's minimum requirements may be different than those in the state you previously lived in, and if your carrier does not do business in Michigan, you will need to find a new insurer.