Jessica Sautter is a Content Writer for with a Bachelor’s Degree from Eastern Michigan University in Elementary Education with a Major in Reading and a Minor in Mathematics.

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Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

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Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager

UPDATED: Oct 18, 2020

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Here's what you need to know...

  • It is super expensive to buy car insurance in Michigan
  • Make sure you have collision and comprehensive coverage for your car
  • Filter the results to include only insurers that provide quotes for the coverage you want

What is known as 7-day car insurance is a part of a spate of fraudulent and illegal car insurance policies, particularly in Michigan, made up for the purposes of keeping up with state requirements.

The State of Michigan reported that up to 16 percent of insurance policies were actually faked.

To find a good car insurance rate, start now by using our FREE car insurance comparison tool above!

Michigan Insurance Laws


Michigan is what is called a no-fault insurance state, which means when you buy your car insurance you have to purchase Personal Injury Protection (PIP) coverage.

What PIP provides you as a Michigan resident:

  • Rehabilitation
  • Medical
  • Salary reimbursement
  • Funeral benefits for your family if you are in a fatal car accident

It is great coverage, but as you may imagine (or know first-hand) it is super expensive to buy car insurance in Michigan.

What people do, whether they buy fraudulent knowingly or without a clue, is buy a 7-day policy to show to the authorities, get their registration, and then forgo the “insurance”.

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Buy Real Insurance

Given the spate of fake insurers, and a probable personal legal liability to get legitimate coverage, go for the bigger names in the business.

The idea is to avoid the legal ramifications of illegal insurance. It is best to avoid any relationship with the false companies.

Here’s what you can do to avoid fraudulent companies:

  • Compare quotes online for insurance
  • Eliminate insurers that have a short, or sketchy history in the industry
  • Check creditworthiness of a company on Moodys website

If it is a national company or one that has been around for many years in Michigan, then it is a safer bet for you.

Here are a few steps to help you compare quotes:

  • You need to determine what it is you need from your car insurance.
  • Make sure you have collision and comprehensive coverage for your car. Collision and comprehensive carry separate deductibles. A deductible is an amount you pay to file a claim, and to receive benefits.
  • Establish which insurers are genuine. It is not as tricky as you might think. If you see them on A.M. Best or Moody’s, then they are real.

This indicates that these insurance companies have the financial resources to pay out claims.

Find Savings in Your Insurance Search


The most rewarding part of buying insurance is the shopping around aspect. When you compare quotes, you can save money.

Here are ways to help you save money:

  • Buy multiple policy types from the same carrier for multi-line discounts
  • Insure multiple drivers in the same household on the same policy
  • See whether teens are better off on a separate policy or on yours, because the pricing may surprise you
  • Successfully complete defensive driving classes online to secure even greater discounts, where insurers provide this discount
  • Make sure if they offer it and you are eligible that you receive a claims-free discount
  • If you have a clean driving record that spans at least three years, look into getting another discount
  • Anti-lock brakes may receive another level of savings

A few additional areas that may provide a drop in premiums are specific to certain auto insurers. They are worth a look.

Here some areas that help provide a drop in premiums:

  • Hybrid or alternative energy vehicles
  • Good grades discounts for high school drivers who score Bs or better
  • Driving less than 12,000 miles annually
  • Driving a newer vehicle
  • Meanwhile, other insurers reward customers who drive older cars

You might notice those last two items point to a direct contradiction. Some insurers prefer the technology, safety features, and newer parts of a vehicle over older cars.

Yet, other insurers prefer seeing customers take to older automobiles. The opportunity for saving money is right in front of you.

This here is the reason why it pays to search out the many car insurance carriers that exist.

One would penalize you and one would toss you extra savings.

Once you have received a slew of vehicle insurance quotes, you may now prioritize the results in order of what works for you. Filter the results to include only insurers that provide quotes for the coverage you want.

For example:

  • If they throw in car rentals after your vehicle is a wreck and in the repair shop, and it costs the same as a carrier without the rental, go for it.
  • If you can receive roadside assistance through your insurer for much less than you can secure the same service through an auto club, go for that too.

Maximize the savings from there, by eliminating any other companies that do not measure up to your creditworthiness standards.

Shopping for car insurance is a financial obligation that costs more in Michigan than in other places.

Though, it is one item where side-stepping the rules or taking shortcuts can lead to dire financial and legal consequences. Instead, put in the time and effort to be successful.

Start comparing car insurance rates now by using our FREE tool below! Enter your zip code to get started!