Because Michigan is a no-fault state, drivers must have personal injury protection (PIP) coverage, which covers financial losses regardless of who is at fault in an accident. This required additional coverage is one of the main reasons why insurance premiums in the state are so high. Consider the following table with various types of vehicles to illustrate how the make and model of your car could affect the cost of your insurance. These demographic characteristics, added to and exacerbated by the Michigan auto insurance landscape, are likely what have made car insurance in Dearborn so expensive.
Michigan car insurance laws only require that you insure yourself against bodily injury and property damage, so you choose if you want to add coverage for yourself, your passengers and your vehicle. Others may be looking for the convenience of mobile apps or a company that offers the most discounts on auto insurance. Next, we explain what coverage you need to drive legally, what are the minimum limits of liability required by your state, and what types of car insurance you might need to be truly protected. For this reason, younger and newer drivers tend to pay much more for car insurance compared to older, more experienced drivers.
The make, model and year of the vehicle you choose will also influence your car insurance rates in Michigan. There are several factors that affect how much you'll pay for car insurance in Michigan, including your driving history, age and location, the amount of coverage you buy, and the insurance company you buy it from. Teenage drivers are inexperienced and involved in more accidents than older drivers, according to federal research, and insurance companies classify them as high-risk drivers, making them more expensive to insure. The Insurify report revealed that both young drivers and city residents (where the population distribution is denser) tend to pay more for car insurance.
Young drivers who have left home and own their own vehicle are generally expected to have their own car insurance policy. In addition, fines for driving without insurance in Michigan can be high, so make sure you get insurance right away and have proof of coverage at all times. But the main reason Michigan drivers pay more for car insurance than anyone else in the country is that it's the only state with unlimited insurance.