High-Risk Car Insurance in Michigan

On average, high-risk drivers in Michigan pay annual car insurance costs of $5,334, which is 136 percent higher than the average for all drivers. Exactly how much you pay will depend on your high-risk designation. DUIs tend to be one of the costliest. Additionally, some insurers offer lower rates than others.

Cost of Car Insurance by Company

Progressive generally has some of the lowest rates for high-risk drivers in Michigan.

Cost of Car Insurance by Driver Profile

High-risk driver status can stem from a bad driving record or, for teens, a lack of driving experience. Due to their increased likelihood of crashes, teen drivers face the steepest rate hikes compared to drivers with speeding tickets, at-fault accidents, or DUIs on their records.

Expect significant premiums increases if you’re finding car insurance in Michigan with a DUI.

Michigan is one of just a handful of states that does not allow insurers to use your credit score as a factor when determining your premiums.

If your search for car insurance has been unsuccessful, you still have options.

Can You Be Ineligible to Purchase Car Insurance in Michigan?

Finding insurance as a high-risk driver means finding a high-risk auto insurance company. While it may seem challenging, you cannot be denied insurance because the state offers the Michigan Automobile Insurance Placement Facility (MAIPF). MAIPF guarantees coverage with one of three carriers for personal auto insurance or one carrier for commercial auto insurance.

Michigan Automobile Insurance Placement Facility

Due to high insurance costs in Michigan for all drivers,the MAIPF guarantees coverage outside of the free market, though rates may be higher.

You’ll purchase the insurance the same way as any other policy: through an agent licensed to sell insurance in Michigan¹. However, your personal auto insurance options will be limited to Auto Club, Auto-Owners and State Farm. For commercial insurance the only provider is Amerisure.

While finding cheap auto insurance in Michigan may be difficult for high-risk drivers, here are ways to keep  auto insurance rates as low as possible:

1. Get minimum auto insurance coverage: Michigan requires drivers to get personal injury protection (PIP), property protection (PPI) and residual bodily injury and property damage liability (BI/PD).
   • PIP: PIP covers your and your passengers’ injuries, lost wages, and childcare costs after an accident, regardless of fault, as Michigan is a no-fault state. You can opt out of PIP if you have Medicare and your household members have qualified health coverage, are enrolled with Medicaid, or are covered by the PIP of another insurance policy. Minimum PIP limits are $50,000, $250,000, $500,000, or unlimited coverage, with specific eligibility criteria for lower limits.
   • PPI: PPI covers property damage you cause to others, including damages to buildings and fences (not vehicles unless parked). The limit is $1 million.
   • BI/PD: Liability coverage pays for the bodily injuries and property damages to others in accidents you cause, with minimum limits of $50,000 per person, $100,000 per accident, and $10,000 for property damage in another state.²
2. Raise your deductible: If you have collision/comprehensive coverage, raising your deductible will lower your rates.
3. Get discounts: Insurance providers offer various discounts.  Completing a defensive driving course or having good grades in school may help reduce your rate.
4. Bundle multiple policies: If you have additional insurance policies besides auto, bundling them with one provider can yield savings.

Car insurance companies won’t consider you to be a high-risk driver forever. Teen drivers will eventually age out, and points for driving offenses will only stay on your driving record for two years.

The more points you accumulate on your record, the more you’ll pay for car insurance. Here are how many points you’ll receive based on specific traffic violations in Michigan:

Car insurance in Michigan is expensive, especially for high risk drivers. However, your rates should decrease  once points are from your driving record. In the meantime, drive safely, as more claims will raise your rates even without an official traffic violation.