Michigan, like most states, requires drivers to have at least a minimum amount of car insurance to drive legally. If you are caught driving without insurance in Michigan, you may face charges, loss of your license, and even jail time. The no-fault system requires Michigan drivers to have personal injury protection (PIP) insurance to pay for their own medical expenses after an accident, as well as property protection insurance to pay for any damage their cars cause to other people's property. If this happens, PIP and PPI coverages help pay for the expenses incurred in the accident in advance, and your insurer will work with the at-fault party's insurance company to cover the damages.
Although car insurance in Michigan is more expensive than average, there are providers that are known to offer more reasonable rates. You should cancel your car's full coverage insurance when the cost of the insurance is equal to or greater than the potential payment, in the event of a covered event. In addition to the population and the number of uninsured drivers, other factors affecting car insurance costs include state laws, crime rates, and special weather hazards. The cheapest states for car insurance are Iowa, Vermont and Nebraska, according to the WalletHub cheap car insurance study.
For more information, see WalletHub's guides on no-fault insurance and the best car insurance in Michigan. Michigan car insurance laws and requirements apply even if you don't “own” a car or truck in the conventional sense, such as if you only rent the car or van or borrow it for an extended period (which may or could exceed 30 days). For example, it might not be worth doing expensive repairs to an old car with high mileage, and you might want to save up to buy a new car instead of paying for additional insurance. To protect themselves and their passengers in the event of an accident, Michigan drivers should carefully select their auto insurance policies and take out the appropriate PIP insurance limits.
State laws govern how much insurance coverage drivers must have, and no-fault laws affect insurers' risks. All insurance products are governed by the terms of the applicable insurance policy, and all related decisions (such as coverage approval, premiums, fees and charges) and policy obligations are the sole responsibility of the insurance insurer.