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How to Get Cheap Car Insurance in Michigan 

For residents that live in Michigan and are ready to buy a new car, you need to start thinking about getting cheap auto insurance no down payment in Michigan. It is required by law to have at least the minimum coverage in nearly every state in the U.S., including Michigan.

The bad news is auto insurance rates in Michigan are some of the highest in the United States, with average rates in the state of $2,610 per year. The good news is that you can take steps to find cheaper auto insurance premiums in MI.

Minimum Car Insurance Coverage Requirements in Michigan 

The minimum amount of coverage drivers needs to buy in Michigan is as follows:

$50,000/$100,000/$10,000. This breaks down to limits of – bodily injury of $50,000 per person, $10,000 in property damage coverage, with total coverage of $100,000 per incident.

While minimum coverage is cheaper than getting full coverage with higher limits, it could cost you in the long run if you get into a serious accident. If your vehicle is worth less than $10,000 and you don’t drive much, then consider a liability-only policy with higher limits.

PIP is Required in Michigan 

Michigan state law also mandates drivers carry Personal Injury Protection or PIP for Medical and work loss.

PIP coverage will reimburse a portion of wage loss, medical expenses, and essential services incurred as a result of a vehicular accident to qualified injured parties (i.e., passengers or pedestrians).

Mandated PIP coverage is one of several reasons why Michigan drivers pay more for coverage, but it also helps those injured drivers who are out of work for a significant amount of time.

How to Get Cheaper Auto Insurance Rates in Michigan

In order to get the cheapest rates, you need to have a good driving record, good credit history, and no tickets, but there are many other factors that affect your rates.

If you are under 25 years old, you will pay higher rates due to the number of claims that teenagers make. Rates for teen Michigan drivers can be double those over 40 years old.

You can also get lower rates in MI if you drive less, typically under 1,000 miles per month. If you use your car for a specific purpose or just on special occasions, you may have much lower mileage than someone that uses the car every day to go to work.

For instance, if you can drive only 5000 miles a year instead of 14,000 miles, you will get cheaper rates because the less time you drive, the less probability of an accident. Some insurers offer greater low-mileage discounts so check around for the best deals.

The location where you live also affects your rates. If you live in a rural area, you may pay less than if you live in an urban area where there is a lot of traffic.

You can pay a lower premium if you increase your deductibles to $1,000 or more. That is a good option, but you have to make sure that you can pay your deductible in case of an accident. There are other ways to get cheaper rates, including additional discounts for installing security devices and parking your vehicle in a garage at night.

Cheapest Car Insurance in Michigan

According to one Insure.com study, Michigan claims the dubious honor of having the highest average auto insurance premiums of any other state in the entire country. While one area of Michigan, around Motown, is famous for making cars, that’s not what really drives up the rates. The state has mandated coverage, including PIP, or personal injury protection, which drives up all motorists’ rates.

High average premiums don’t mean that your own premiums need to be expensive. Find affordable car insurance from the best companies in your Michigan city. All you need to do is enter the zip code to get started.

Michigan Car Insurance Statistics

  • MI drivers without insurance: 25 percent
  • Detroit drivers without insurance: 25 percent
  • Michigan state rank for uninsured drivers: 6
  • Average MI full coverage: $2,610
  • Average MI repair costs: $2,262

It is also interesting to note that a nearby Midwest state, Ohio, has the lowest average rates in the country. Typically, Midwest states have comparatively low rates. This begs the question, why does Michigan stand out with expensive premiums? Part of it is because of local regulations like the type of PIP mandated in required liability policies in Michigan. Other factors to consider might be average vehicle repair costs, the number of Michigan drivers who lack coverage, and the likelihood of auto thefts.

While average premiums may not be high everywhere in the state, expect higher prices in the largest cities like Detroit because of heavy traffic and higher incidences of crime. For example, within the state, the theft rate was almost 3 and a half vehicles per 1,000, and this is higher than average for the US, which is about 2 vehicles per 1,000 vehicles.

These are the largest cities in Michigan with their population:

  • Detroit: 713,777
  • Grande Rapids: 188,040
  • Warren: 134,056
  • Sterling Heights: 129,699
  • Lansing: 114,297

Car Insurance for Michigan Teenagers and Seniors

All else being equal, seniors and teenagers tend to fall into the highest rate classes. Many adults have been surprised by price increases when they had to put their kids on their policy, and other adults have been surprised by increases when they reached retirement age or above 65 years old.

Because they lack experience and maturity, teens are responsible for a large share of claims in Michigan. Senior citizens have plenty of experience, but they may suffer from medical conditions and slower reflexes that cause insurers to consider them risky to cover.

How to Buy the Cheapest Michigan Car Insurance

While you can find no down payment car insurance companies, you should expect to at least pay the first month’s premium before your coverage starts. Some people pay their premium annually or semi-annually to get a small discount, but most people make automatic monthly payments from their checking accounts. This way, they don’t have to worry about lapsed payments. Most insurers offer discounts for paying automatically and paying for more than one month at a time.

Insurers also offer discounts to cover cars, vans, and trucks for other owners’ other things to reduce risks. For example, you might save money if you take a driver’s safety class, install an anti-theft device, or choose to purchase a car with good safety ratings.

You can buy now pay later car insurance online in Michigan or through a licensed broker in person. Most often, the cheapest MI auto insurance rates will be found online. Start your search now. Fill out a free quote application and see how much you can save on auto insurance in MI.

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