Michigan Auto Insurance

The state of Michigan requires all insurance companies to offer uninsured and underinsured motorist insurance to all their policy holders.  Uninsured and underinsured coverage provides protections against drivers who do not carry the mandatory liability auto insurance demanded by the state.  Underinsured and uninsured coverage is not mandatory in the state of Michigan but it is recommended.  If you decide to forego this option, the insurance company is required to provide a signed declaration page stating that you chose not to take the underinsured and uninsured coverage.

Your insurance company may require all household members be listed on your policy.  They use this information to check driving records in order to establish your premiums.  If you are certain a member of your household will not be driving your vehicles, you can exclude them.  If the individual is not listed on your policy, the insurance company does not have to provide coverage for that person.  If your policy lapses or cancels you can be cited for driving without the required insurance so you must pay the premium to reinstate the policy.  If the policy is cancelled, then you must find a new auto insurance policy right away.  Since Michigan is a No Fault state, each individual driver’s insurance policy will pay for the damages to their vehicle in an accident no matter who is at fault.  It will also cover all injuries to anyone in your vehicle including yourself.  Unless the injuries are extreme, you will not be able to sue the other individual or be sued by the other individual.

Michigan insurance companies can use your credit history to accept applicants and set insurance rates.  They may also use your credit score to determine your risk factors however many other factors are used to determine your rates such as the age of the drivers on the policy, the car you drive, your driving record, where you live and your marital status.  Insurance companies may advise policy holders to buy more than the minimum liability auto insurance.  The average insurance premium in Michigan as of 2006 is approximately $925.00 and the state is ranked as the 13th most expensive for insurance premiums in the nation.

There are 22 officially accepted insurance companies listed in Iowa.  They include Allstate Insurance Company, Allstate Property & Casualty Insurance Company, American International Insurance Company (AIG), Amica Mutual Insurance Company, Auto Club Insurance Association, Cincinnati Insurance Company, Esurance Insurance Company, Farmers Insurance Exchange, GEICO Indemnity Company, IDS Property & Casualty, Mercury National Insurance Company, Metropolitan Direct Property & Casualty, Metropolitan General Insurance Company, Metropolitan Property & Casualty, Mid-Century (Farmers) Insurance Company, Nationwide Mutual Fire Insurance Company, Progressive Marathon Insurance Company, Progressive Michigan Insurance Company, Safeco Insurance Company of Illinois, Standard Fire (Travelers) Insurance Company, State Farm Mutual Auto Insurance Company, and Unitrin Direct Insurance Company.

One of the methods you can use to reduce the cost of your auto insurance premiums is to purchase more than one type of insurance policy with the same company.  You will also get discounts for a clean driving record and possibly for renewing you policy with the same company repeatedly.  Making sure you insurance never lapses will sometimes reduce your premiums.  Younger drivers can get discounts for maintaining good grades, and completing a driver safety course approved by the state.  Insuring multiple vehicles will also reduce your premiums.  Anti theft devices and safety mechanisms such as airbags and seat belts will contribute to the reduction of your auto insurance premiums.  It may also be useful to know which cars are frequently targeted by thieves.  The list of the top ten most often stolen cars in the state of Michigan are listed below.

1. 1994 Dodge Caravan
2. 1994 Honda Accord
3. 1991 Toyota Camry
4. 1996 Ford Taurus
5. 2000 Honda Civic
6. 2000 Dodge Intrepid
7. 1996 Jeep Cherokee/Grand Cherokee
8. 1994 Plymouth Voyager
9. 1997 Ford Crown Victoria
10. 2001 Dodge Stratus