How to Save on Michigan Car Insurance? 10 Tips to Reduce Costs

By Randy Luton | Last Updated: 05/04/2022

Key insights

  • The laws for car insurance are too complex in Michigan for all the drivers.
  • The average car insurance rate in Michigan is higher than most states and even the national average cost.
  • By combining multiple ways to save money on your car insurance you can reduce the cost to a higher amount.

Michigan car insurance laws are complex even for experienced drivers and the cost to buy insurance in the state is out of the budget for most of the drivers. The average cost of buying car insurance in Michigan is almost 90% higher than the national average rates.

If you are also from Michigan or you are planning to shift to Michigan and the high car insurance cost is troubling you then this blog can be your guide. RateForce has tried to cover all the important aspects related to car insurance like average cost, reasons for increasing car insurance cost, and how you can get affordable rates.

Read till the end to know everything about car insurance in Michigan:

Average Car Insurance Cost In Michigan

The cost of car insurance in any state can vary a lot from company to company and this is why it is important to keep a check on car insurance quotes from different companies in your state. To help you with this, we have created a list of top companies that provide car insurance in Michigan.

CompanyAverage Auto Insurance Cost In Michigan
Progressive$1393
GEICO$1465
Travelers$1569
Chubb$1635
MetLife$1770
Auto-Owners$1882
Frankenmuth$1920
Westfield$2321
Allstate$2724
State Farm$2802

Why Car Insurance is Expensive in Michigan?

Now that you know the average cost of car insurance in Michigan, let’s try to understand the reason behind these higher car insurance rates in Michigan. Below are some of the top reasons why car insurance is expensive in Michigan state:

1. The No-fault Car Insurance System In Michigan

Being a no-fault state Michigan drivers are responsible for their own medical expenses even if the other driver is at fault. This is why Michigan drivers get higher insurance rates as they will have to buy personal injury protection as well.

2. Number Of Uninsured Drivers

In terms of the number of uninsured drivers, Michigan is ranked second. 26% of the drivers do not have car insurance in Michigan as a result, if they get into an accident then the expense to repair your car will be handled by your own insurance company. This is why the drivers get higher insurance rates.

3. Higher Insurance Fraud

Michigan drivers file a lot of false claims; more than 10% of no-fault claims are comes under car insurance frauds in the state. The insurance companies then try to cover these losses from all the drivers hence they get higher insurance rates.

4. Additional Insurance Requirements

All the drivers in the state are required to buy personal injury protection (PIP) as well as property protection insurance along with the minimum state’s liability insurance. This increases the cost of basic insurance liability of the state.

5. Higher Personal Injury Protection Lawsuits

Michigan’s number of personal lawsuit protection has increased by 130% from the last 10 years. Most of these lawsuits involve drivers suing no-fault insurance claims, especially in cities like Detroit and Warren city.

How to Save on Michigan Car Insurance?

We know you are scared now about the rising amount of car insurance in Michigan and you are not alone. Almost every driver in Michigan is looking for ways to reduce his or her insurance premium amount. We have some well-tried and tested ways that can help you to get an affordable car insurance policy in Michigan:

  1. Ask For The Latest Pip Coverage Options
    The lawmakers of Michigan have created new PIP coverage options that allow the drivers to choose less coverage at greater discounts. If you are selecting this option then you might have to pay the expenses of medical fees in case of an accident from your pocket.
  2. Ask For Higher Deductibles
    Higher deductibles can decrease your car insurance premium rates. According to insurance companies, drivers with higher deductibles are more responsible and have fewer claims. Ask your car insurance company to increase the amount of your deductibles.
  3. Get Low Mileage Discounts
    If you drive your car less and you have a lower average number of miles every year then you can try for low mileage discounts. This is also applicable to the drivers who prefer carpooling to work, school or college.
  4. Maintain Your Credit Score
    Even though insurance companies say they don’t consider credit score as a factor to calculate the premium they do. Drivers with good credit scores get lower insurance rates as compared to other drivers with poor credit scores.
  5. Shop Around And Compare The Rates
    The best way to get affordable rates is to get car insurance quotes from different companies and compare them with each other. Comparing rates from different companies will help you to understand what other companies provide at similar or higher rates.
  6. Drop Collision / Comprehensive Insurance On Older Cars
    Collision and comprehensive insurance are expensive on older cars. If you are paying a higher premium for comprehensive or collision insurance than the actual cash value of your car then it is better to drop this extra coverage.
  7. Get Group Insurance
    If you are a part of any alumni group, business group, or professional group then you can ask for a discount. You can also ask your employer company to add you into any group or make you a member of any club that can help with less expensive car insurance policy.
  8. Get A Defensive Driving Course
    After completing a defensive driving course a driver gets into the category of a safe and responsible driver. These drivers get lower car insurance rates as compared to other drivers that have not completed the defensive driving course.
  9. Club Your Other Insurances
    If you need home insurance, renters insurance, or any other insurance then try to buy these insurances from the same company. Buying multiple insurances from one company makes you an important and loyal customer. Hence you will get lower insurance from your company.
  10. Add Your Family Members To Your Policy
    If you have kids or a wife then you can ask your insurance company to add them to your policy. This will lower your insurance rates as a family. If you are paying $4000 for your policy and $4000 for your wife’s policy then you might get a total amount of around $6000 for both.

Now It’s Your Turn!

Michigan citizens get the highest car insurance rates in the country as per their economic mobility rates of 2019. The drivers are finding it difficult to afford even the basic state’s minimum requirements policy.

RateForce understand the requirements of our clients at RateForce and hence we provide best cheap car insurance in Michigan from top auto insurance companies.

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SOURCES

  • Studied report about auto insurance and economic mobility in Michigan by Michigan University for the higher rates of car insurance in Michigan on 13 January 2022.
  • Checked report by Mlive to understand; the rise of personal lawsuit protection suits from the last 10 years in Michigan on 13 January 2022.
  • Refereed to an article by Freepress to understand the number of no-fault fraudulent claims in Michigan state on 13 January 2022.
  • Checked report by Insurance Information Institute to check the number of uninsured drivers in Michigan state on 13 January 2022.

Editorial Guidelines: The above is meant as general information to help you understand the different aspects of auto insurance. This information does not refer to any specific auto insurance policy. Coverages and other features vary between insurers, vary by state, and are not available in all states. References to costs of coverages/repair, average or typical premiums, amounts of losses, deductibles, etc., are indicative and may not apply to your situation. We encourage you to speak to our insurance representative and to read your policy contract to fully understand your coverages.

Randy Luton is the Founder and CEO of RateForce. He is passionate about InsurTech services and has in-depth knowledge about the auto insurance sector of the USA.