Metro Detroit Auto Insurance


Information About Insuring Your Automobile

With well over 50 companies aside from the big national companies that come to mind when you think about the topic. We have listed many different companies for you to look into which may offer the best rates for you and your family. We do not have personal experience with most of these companies so be sure to do your own research once you find the two or three best options for your needs. Then decide who to go with.

Even if we had personal experience with all of these companies, what works best for us may not work best or be even close to the most affordable for you. If you have ever looked for car insurance before you have probably seen quotes that while offering generally the same style of package have vastly different price points with seemingly no rhyme or reason. Shopping around is the only way to make sure you are getting the most for your money. There are some apps and websites out now that will do some basic comparing for you but they are just a starting point and rarely include smaller local businesses, just brands you see ads for.

Below we will provide you more detailed information to help you understand all the lingo used by insurers to show you what you are really getting in these different categories, which ones you may want to max out and which of them you are looking for the smallest number, until everything works out with your budget.

Automobile Insurance Eligibility

Below we will provide you more detailed info to help you understand all the lingo used by insurers to show you what you are really getting with these different categories, which ones you may want to max out and which you want the smallest number, until everything works out for your budget. Knowing the VIN report will make sure the condition of your car is quality with safety features that help the rate.

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Automobile Insurance Eligibility

Our no-fault system was out into law in 1973 to increase the level of benefits paid to injured persons as well as reduce legal and administrative costs, and make sure payments are promptly paid. Michigan law requires every vehicle owner to purchase automobile insurance and guarantees that automobile insurance will be available to all eligible Michigan citizens. Eligible citizens means for automobile insurance a person who is an owner or registrant of a car registered or to be registered in Michigan or a valid Michigan driver’s license based on Michigan law (MCL 500.2103). However, there are circumstances when a company can refuse to insure you. You can be turned down for car insurance in Michigan if:

  • You have no plan to drive or live in Michigan for 30+ day, so you do not require insurance with the state.
  • If your license has been suspended or revoked. As you are not allowed to drive.
  • You've been found guilty of a felony with a motor vehicle, such as, driving under the influence of alcohol or drugs, failing to stop at the scene of an accident, or reckless driving in the past three years.
  • In the past 5 years you've been convicted of attempting to defraud an insurance company. Or you have been denied a claim of over $1,000 due to evidence of fraud on your part.
  • You want to insure a automobile that does not meet state safety requirements.
  • If your insurance has been canceled due to not paying your premium. This one can be waived if you pay your full premium for the policy up front.
  • The insurance that you wish to purchase requires you to belong to some organization, for example USAA if you were not in the armed services.
  • You have too many points on your driving record. You can be turned down if you have more than 6 eligibility points on your record within the past 3 years. Most moving violations are two points but more serious ones can be up to 3 or 4.

In some cases you may be able to find an insurance company that takes high risk drivers but be prepared for expensive rates. If you fall into this group make sure you know when your number will drop so you can shop for more affordable plans, and stay out of trouble.

Driving Without Insurance

Unfortunately far too many people take this risk without thinking it though. Not only do you have to worry about getting pulled over for any reason, even if the reason is highly questionable. But if you were to get into an accident since you don't have even the bare minimum of no fault insurance you can be sued and held personally liable. So all the court costs are on you. That also means your own medical expenses are your responsibility as well, and on top of all that you can be fined up to $500 and/or spend up to a year in jail. It is absolutely not worth it.

No-Fault Auto Insurance Reform

Michigan has had some of the highest rates in the country for many years, this reform that went into effect on July 1, 2021 looks to reduce the cost in a few different ways but the biggest is offering policies with new coverage options that should allow you to reduce your premiums but you have to change you policy to get the lower cost, though it should be noted that you will be dropping from unlimited personal injury protection to set amounts per person, per accident.

There are many different aspects to this reform but the other big one for consumers is the elimination of non-driving factors to determine your rates. Meaning companies will no longer be able to take into account thing like your credit score, zip code, occupation, education level, sex, marital status and home ownership. Companies, agencies and even agents face increased fines and penalties for any violations of this law.

While there are many different aspects to this reform of the reasons for it is to make policies more affordable that way it reduces the amount of people that will decide to drive without having a proper insurance policy, as the high costs in the state is often cited as the reason for driving without coverage.

How Many Uninsured Drivers Are In Michigan Pre-Reform?

According to the Insurance Research Council, the State of Michigan has the fourth highest proportion of drivers that are uninsured in the entire country. Nearly 20% of car owners do not have auto insurance, that's staggering, 1 out of 5 drivers lack the most basic coverage. Remember when we said with this reform they can no longer take into account things like Zip Codes, this alone should help a lot because anyone who has even spoke to someone who lives in Detroit you have probably heard them talk about just how jacked up their rates are. If you are hit by an uninsured driver your PIP (Personal Injury Protection) on your policy will cover your medical bills, but to recoup other expenses like lost wages, pain and suffering and other costs you'll have to sue the uninsured driver who caused the accident. Hopefully we'll get to the national average.