Breakdown of Michigan auto insurance

Price by Demographic:

When purchasing Michigan auto insurance, many different things can affect the price of the quote.  The reasoning may seem incredibly complicated, when in fact all of the decisions that dictate how expensive Michigan auto insurance may be are all based on years of statistical analysis.

Insurance companies have discovered that there are states in which it is more or less dangerous to drive.  They know that teenagers of driving age are three times as likely to crash as older drivers.  They understand, too, that the color of the car you choose may be linked to your personality and driving style!  It should come as no surprise that those who purchase fast cars in bright colors may be more reckless than those who drive a sensible minivan in muted gray.  Even your marriage status affects how likely you are to get into an accident: those who are married are only half as likely to get into an accident as their unmarried counterparts.


Some coverage you are required to carry by law.  Michigan requires no-fault insurance.  That means that if you are in an accident, your car insurance will pay for unlimited rehabilitation and medical expenses and wage loss benefits, and $20 per day for replacement services for up to three years.

There are three parts to no-fault insurance, all of which you must carry by law:

  1. Personal Injury Protection (PIP)

This is the part of your no-fault insurance that covers medical expenses and wage loss and replacement services.

  1. Property Protection (PPI)

This insurance will pay for property damage, either to your vehicle or to others’ property (buildings, fences, railings) up to a million dollars.

  1. Residual Bodily Injury and Property Damage Liability (BI/PD)

This pays for your defense if you are found liable in an accident in which someone was killed or seriously injured.  This may not pay for the entire legal bill, so you must carefully read your policy in order to determine how much or what percentage is covered.

Additional types of insurance you can purchase include roadside assistance coverage, which can cover the cost of a tow, additional collision coverage for accidents, comprehensive coverage to deal with damage caused by fallen tree limbs, hail, and other non-collision related events, mechanical breakdown insurance, which will help you pay for repairs should your car break down, and gap coverage, which can help cover the costs of damage to a leased vehicle.