Michigan is one of the states known for holding a complex “no-fault insurance” system. In addition to that, the state is also known for keeping some of the highest rates, which can make it more challenging to find cheap car insurance in Michigan. Using the information provided by Truly Insurance can offer you the information you need to consider to find the most competitive rates that work for your need.

Factors of Affecting Insurance Rates

Regardless of which insurance company you receive a quote from, it’s going to consider multiple factors when it provides you with a quote. Factors such as the make and model of your vehicle, driving history, credit history, neighborhood, and other variables get used when determining how much you’re going to pay.

Average Car Insurance Rates in Michigan

On average, the approximate insurance rate in Michigan is $2,480 annually. Shopping around is essential if you want to find cheaper insurance because factors that determine your rate can vary significantly, even if it’s for the same policy.

If you live in the 48236 zip code, getting multiple quotes becomes more imperative because it’s possible to overpay by thousands of dollars. Some of the highest rates in that zip code come close to $6,000 whereas some of the lowest are approximately $1,400. The zip code that you live in can severely impact the amount you pay for coverage.

Michigan Car Insurance Laws

If you aren’t familiar with what you need when obtaining quotes, it’s very possible that you might end up paying more. An insurance agent is likely to offer you more than what you need, or advise you of individual policies that are better for a specific reason—that is their job. When looking at different agencies, it is in your best interest to understand Michigan car insurance laws, and what the state requires.

As a resident of Michigan, the state requires that you have a minimum 20/40/10 liability limit on your vehicle. What this means is you need to have $20,000/$40,000 minimum body injury liability and $10,000 minimum property damage liability.

Michigan laws also require that you have both Property Protection Insurance and Personal Injury Protection. The purpose of PPI (property protection insurance) is to provide up to $1 million in coverage from damage to inanimate objects such as buildings, legally parked cars, poles, fences, and other variables.

However, the coverage is only specific to the property of others. As an example, if you collide with your own wall, you need to pay out of pocket.

Personal Injury Protection coverage gets used to pay medical expenses that are the result of an accident regardless of who is at fault. The no-fault system that Michigan has provides both you and your family with lifetime coverage for medical expenses that result from an auto accident. While the no-fault Personal Injury Protection doesn’t often cause your own bodily liability insurance to come into play, it’s still a good idea to have both.

You might think that boosting your liability coverage is going to result in higher premiums, but this isn’t always the case and is another reason why you need to shop around to get the cheapest rates. In many cases, insurers are going to look at you as a lower risk when you boost your liability limits. It can sometimes save you up to $400 in your premium costs.

Tips and Tricks to Cheaper Insurance

Insurance can be costly, and that’s why understanding insurance and Michigan State driving laws are highly important. If you know what you need and what you don’t need, there’s a good chance that you can keep your costs as low as possible.

Here are some tips to keep in mind:

  • Gap insurance: If you own your vehicle outright, you can save money by not adding gap insurance to your coverage policy. Gap insurance is only recommended if you are leasing your car or if it’s less than a year old and you put less than 20% down.
  • Credit: Your credit plays a significant part in your insurance rates. Michigan residents with bad credit can pay upwards of 170% more in premiums. If you suffer from bad credit, work diligently to boost your score and ensure you shop around for the lowest quotes.
  • Driver courses and driver improvement courses: Insurance agencies look at your motivation to seek extra driving experience by taking courses as a way to prove you are a lesser risk. If you complete these courses, you can possibly obtain cheaper insurance.
  • Young drivers: In many cases, parents of young drivers want to add their teenager to their policy; however, it might not always be the most cost-efficient measure. Sometimes, adding a younger driver may actually cost more to add them to your plan than it might for them to secure their own.
  • New driver: All you can do is wait it out. You are going to be considered a higher risk regardless of what you do because you are new to the roads.
  • Limit your driving: If you keep your annual mileage to a minimum, insurers are going to look at you as less of a risk because you aren’t spending as much time on the road.
  • Work loss waivers: Ensure that you are asking your insurer about the work loss waiver. Insurance companies are required to offer you a discount if you are retired, or over the age of 60.
  • Health and car insurance discount: It is possible to get a lower personal injury protection rate when you combine it with your health insurance coverage. However, you do need to ensure that you don’t have Medicaid or any type of Medicare supplemental policy.
  • Zip code: Remember that the zip code of the place you live in plays a significant part in the premiums that you’re going to pay. It’s not suggested that you sell your home and move to a new neighborhood to get cheap car insurance in Michigan, but it can motivate you to look into multiple insurance companies.


At the end of the day, shopping around and spending the time to contact various auto insurance companies for quotes is going to be the ultimate best way to ensure you get the cheapest insurance in the state. Using resources such as Truly Insurance is also a great way to get the information and tips that you need to make sure that you understand the policies that are required and the types of liabilities that you don’t need.