Insurance in Michigan: A Guide to Auto & Home Coverage
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Accidents happen. You never know when something could happen to your home or your car—two of your most valuable possessions. Although you can’t prevent every accident, you can protect yourself from them. Auto and home insurance are the answer, especially in Michigan, where there are risks like flooding, tornadoes, and forest fires.
When you’re shopping for insurance in Michigan, you have to consider these unique risks as well as the state’s specific insurance laws. It can be tricky trying to keep track of them all, so use this guide to better understand Michigan auto insurance requirements and home coverage basics. You’ll also discover average Michigan insurance rates and strategies to save so you don’t overspend on your coverage.
Michigan Auto Insurance Requirements and Costs
By Michigan law, all drivers must carry liability car insurance that meets these minimum coverage requirements:
- $50,000 of bodily injury liability coverage per person
- $100,000 of bodily injury liability coverage per accident
- $10,000 of property damage liability coverage
Michigan uses a no-fault system, which means that your own insurance policy covers your damages from a car accident, such as medical expenses and lost wages, no matter who caused the accident. So, each driver’s Michigan car insurance policy that also includes personal injury protection (PIP) and property protection (PPI) in addition to their mandatory liability coverage.
If you’d like additional coverage beyond the minimum Michigan car insurance requirements, you can buy optional car insurance, like collision and comprehensive. Collision covers damage to your vehicle from an accident you cause, while comprehensive covers damage from non-collision events, like a natural disaster.
In 2025, Michigan drivers pay an average of $3,144 per year for full coverage insurance, which comes out to $262 per month. For minimum car insurance coverage in Michigan, the average rate is $1,929 annually or $161 per month.
Lots of factors can affect your car insurance rates, though. Location is one of them. Drivers in major metropolitan areas, such as Detroit and Grand Rapids, may pay more for coverage because of increased traffic congestion and a higher risk of accidents. Similarly, young drivers, senior drivers, and people with previous driving infractions often pay more for car insurance because insurance providers see them as higher risk.
Beyond personal factors, high accident rates, medical costs, and urban traffic density all influence car insurance premiums. In 2019, Michigan implemented reforms to the no-fault laws to bring down premiums, such as a choice of personal injury protection coverage levels and a medical care fee schedule to make PIP medical coverage more affordable.
Michigan Homeowners Insurance Essentials
Owning a home is a huge financial investment. Purchasing homeowners insurance in Michigan is the way to protect that investment and guard against unexpected expenses.
Homeowners insurance coverage typically covers:
- Dwelling: Coverage for damage to the physical structure of your home
- Personal property: Coverage for damage to the belongings in your home, such as furniture and clothing
- Additional living expenses: Coverage for temporary housing, food, and other living expenses if your home becomes unlivable through a covered event
- Liability: Protection if someone is injured on your property
On average, Michigan residents pay $1,422 per year on homeowners insurance. In metropolitan areas, rates are significantly higher. In Detroit, for example, the average homeowner pays $2,327 on homeowners insurance. Some unique risks in Michigan, like storm damage and flooding, contribute to higher rates.
Ways To Save On Auto And Home Coverage In Michigan
Between home and auto coverage, insurance costs add up quickly. Save on your rates with these strategies:
- Explore safe driver discounts, which offer lower premiums to drivers who avoid dangerous habits like speeding or sudden braking.
- If you or a family member is in school, look for good student savings.
- Bundle your home and auto insurance policies with the same insurance provider to unlock a multi-policy discount.
- Shop multiple providers to make sure you find the best rates for the coverage you want.
Compare Insurance Quotes For Michigan Coverage Today
There are lots of insurance providers in Michigan, and requesting quotes from all or even many of them would be very time-consuming. That’s not your only option for comparing rates, though.
With EverQuote, you can see customized insurance quotes for the insurance coverage you want. Get your personalized auto and home insurance quotes in just a few minutes from EverQuote.
FAQs
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Premiums are sourced from over 30,000 zip codes across 200 insurance companies. We estimate premiums based on public filings for policies seeking 50/100 in liability with $500 deductibles for collision and comprehensive coverage. Estimated rates are based on a 35-year-old single female with a good credit score and no history of accidents or violations driving a 2023 Toyota RAV4 LE. We partner with Quadrant Information Services to source our data and assume no unique benefits or discounts are applied for these rates (unless otherwise stated). Your own rates may be different.