How to find the best car insurance in Michigan
To find the best car insurance in MI, you may want to start by evaluating your unique situation. All insurance companies also offer different rates, so getting quotes from multiple auto insurers as you shop for Michigan car insurance may help you find a carrier that fits your needs and budget. In general, there are a few ways you can assess your insurance needs to help you find the coverage that is right for you.
Consider minimum insurance requirements in Michigan
Auto insurance is required by law in Michigan, 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 personal property insurance (PPI). Understanding your state’s minimum car insurance coverage requirements might help you determine if you need to buy higher limits, as many insurance experts suggest. Higher levels of bodily injury liability and property damage liability offer more financial protection.
Consider lender requirements
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, 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. Lessors 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. Having this coverage might help you avoid financial stress if your vehicle is totaled and the payout is less than what you still owe.
Consider your individual needs
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.
Michigan has the second-highest percentage of uninsured drivers in the nation. According to data from the Insurance Research Council, 25.5 percent of Michigan motorists were estimated to be uninsured as of 2019. Uninsured motorist coverage may be worth considering, as it could help pay your bills if an uninsured driver hits you.