Michigan Auto Insurance

Michigan follows a No-Fault insurance system, which means that your company will reimburse you for your material losses and cover your medical expenses regardless of whoever was at fault in an accident.

Minimum legal insurance requirements

The minimum legal requirement for insurance in Michigan is Liability with 20/40/10 limits:

• $20,000 to cover medical expenses per injured passenger, capped at $40,000 for the whole accident;
• $10,000 to cover property damage.

Average insurance costs in Michigan

Some of the Michigan residents pay among the highest insurance rates in the country, while others pay much less. The average car insurance premium in Michigan amounts to $1,949, which is much higher than the national mean rate of only $1,678.

There are some very expensive cities in Michigan. Insurance costs, on average, $2,731 in Detroit, $2,100 in Flint, $2,532 in Dearborn or $2,173 in Warren. Insurance in other major cities is more reasonable. It costs, for instance, $1,670 in Grand Rapids, $1,507 in Ann Harbor and $1,628 in Lansing.

Cellphones and driving in Michigan

The Michigan Senate has put a ban on text messaging while driving. Additionally, teens with provisional license who have caused an accident or have received a ticket due to the use of cellphones may not use handheld devices altogether when operating a car.

Teenage driving regulations

Michigan uses the Graduated Driver Licensing system, a concept meant to ease the learning process of aspiring drivers while still keeping them safe from risky situations in traffic. Based on the driving experience of the teenager, there are three levels of restricted licenses:

• Level 1 (six hours behind-the-wheel instruction, 4 hours of observing traffic as a passenger) – may only drive if supervised by a licensed parent, licensed legal guardian or another licensed adult with parents’ consent;
• Level 2 (six months of Level 1 experience, 50 hours behind-the-wheel experience) – may not drive between midnight and 5am unless accompanied by an adult with a valid driver’s license;
• Level 3 (six months of Level 2 experience) – must keep a clean record for three years or risk having their probation extended or license suspended.

Penalties for driving uninsured in Michigan

Drivers must submit proof of insurance before they are allowed to register their vehicle. Driving without the basic insurance is a misdemeanor. Should you be caught without proof of insurance, your license will be suspended for 30 days and will have to pay a reinstatement fee of $125. You will also be fined up to $500, put in jail for a year or both.