Michigan auto insurance is an important component of your monthly and annual budget, as well as a safeguard for your personal well-being and financial resources. You don't want to spend more than you have to for auto insurance coverage, but the limitations of minimal coverage can leave you financially vulnerable in the event of a major accident. Few drivers feel adequately covered by these minimal requirements, but few drivers feel they need top-tier, comprehensive coverage, either. Finding the right balance for you starts with finding the right Michigan auto insurance company. That's what NetQuote is here for, but you may want to take some time and review this basic information before soliciting quotes for your auto insurance.
Michigan Auto Insurance Requirements
Michigan is a 20/40/10 auto insurance state. What this means is that state law requires your insurance policy provides you with $20,000 worth of coverage for bodily injury or death that you cause to other individuals, $40,000 worth of coverage for bodily injury or death caused per accident if multiple people are involved, and $10,000 worth of coverage for property damage caused in other states. Moreover, you're required to carry one million dollars worth of property damage for losses that occur within the state of Michigan. Finally, you're required to carry personal injury protection that will pay all necessary medical costs that result from an accident. (You may be able to circumvent this requirement if you can show proof of adequate coverage from your health insurance provider.)
Michigan's No-Fault Insurance
One of Michigan's many nicknames is the Auto State. An obvious connection to its auto-making industry, the state is also one of the pioneers in qualitative no-fault insurance. Most people are familiar with no-fault insurance, but surprisingly few understand the details associated with this tort system. No-fault insurance simply means that you're not allowed to sue another driver for losses that result from an auto accident. This allows for lower auto insurance premiums and speedier claim payouts. Fortunately, you don't forfeit all your tort rights, otherwise the system wouldn't work. Michigan's qualitative or verbal threshold system allows you to sue other drivers for general damages in the event of serious impairment of bodily function, permanent or serious disfigurement, or death.
Average Cost of Michigan Auto Insurance Quotes
It would be nice to think that this no-fault insurance system has created premiums that are lower than the national average. Unfortunately, this isn't the case. In 2007, the last year for which comprehensive, reliable information is available, the average cost of Michigan auto insurance quotes was $928, compared to $795 nationwide. Indeed, many states with higher-than-average auto insurance costs specifically adopted no-fault insurance as a way to combat these higher rates. These measures do seem to help, but in the end, states' accident and claims rates have a bigger impact. The good news is that Michigan auto insurance quotes are fairly stable and have even decreased over the last several years. The average cost increased only $3 from 2006 to 2007 ($925 to $928) and has declined considerably from the 2004 mark of $980.
Shopping for Michigan Auto Insurance Quotes
Finding Michigan auto insurance quotes is the easy part. There are dozens and dozens of companies that provide auto insurance in the state of Michigan. You can thumb through the phonebook or find them online. NetQuote , however, offers a better way. By filling out a quick online form, you will be matched to those companies which best fit your insurance needs. Better yet, these companies will make the effort to contact you, allowing you to sift through different companies and quotes from the comfort of your own home. In this way, you can retain the home-field advantage and avoid the high-pressure situation associated with pushier insurance agents. It shouldn't take long to find the right company for you, but you'll also have the satisfaction that comes from knowing your choice was the right one.