Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health insuran...

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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 Chris Harrigan

UPDATED: Apr 13, 2022

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Here's what you need to know...

  • The benefits of PIP are yours whether you cause the accident or are the victim of another driver’s errors
  • Carry sufficient insurance when driving over state lines to protect your assets and your future wages
  • Many states, like Michigan, have enacted what the industry call pay no play laws

Living in Michigan makes you a stronger person, whether you are in the throes of the grittiest neighborhood in Detroit or in the diametrical opposite — sitting pretty in Grosse Pointe.

The winters overextend their welcome, many jobs continue to flee, and anyone left behind has to contend with some of the highest vehicle insurance rates in the nation.

It might feel more like a constant onslaught of severe penalties to continue residing here. What many fellow Michiganders do to contend with the exorbitant is unknowingly or willfully illegal.

Start comparing car insurance rates now with our FREE tool above! Enter your zip code now to get started!

Life in Michigan


People in Michigan purchase a short-term vehicle insurance plan and show up at the Department of Motor Vehicles. Even to register a vehicle, you will have to show proof of valid auto insurance.

If you attempt the 7-day car insurance deal they will only know that you have tried to play the system, whether you knowingly or innocently purchased the fraudulent insurance.

The genuine insurance minimums to drive in Michigan includes personal injury protection, and property protection insurance, which are no-fault insurance types.

It explains the hefty insurance premiums and does take good care of its insureds if there is an accident.

Basically, what it means to be no-fault is that everyone’s responsible for their own injuries and their own damage to their vehicles.

The benefits of PIP are yours whether you cause the accident or are the victim of another driver’s errors.

The benefits of Personal Injury Protection, particularly in Michigan, include:

  • Thorough care that may reimburse lost wages
  • Provide rehabilitative physical therapy
  • Funeral benefits and money toward medical expenses

Specifically, the minimum coverage you need in order to drive legally in Michigan falls within the following parameters:

  • 20,000 dollars in bodily injury liability for each person
  • 40,000 dollars bodily injury liability per accident.
  • 10,000 dollars property damage liability for accidents in at-fault states.

Liability is a big term thrown around in insurance circles in states that are at-fault insurance enclaves.

This means that the blame for property damage and injuries is pinned on whoever caused an accident.

In general, the insurance industry recommends having 100,000 dollars per injured, 300,000 per accident, and 50,000 to 100,000 dollars in property damage liability.

If you cause an accident in some states and only have payed the minimum insurance, you could be sued for the rest of the money.

Carry sufficient insurance when driving over state lines to protect your assets and your future wages.

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Uninsured Motorist Facts

What is astounding is that other states have far greater numbers and percentages of drivers who skip insurance.

The uninsured in Oklahoma and Mississippi stick around 30 percent, while California has more than 4.1 million without insurance.

The issue is that most states, as you may already know, use an electronic cross-referencing system to check out whether drivers have insurance.

That refers to preventing uninsured drivers from suing for noneconomic or economic damages, depending upon individual state laws.

This is where Michigan does concern itself with fault. In the case where a driver is at least 50 percent at fault, they cannot collect noneconomic damages.

The Best Ways to Buy Insurance


It turns out, then, that 7-day car insurance is a lot like the seniors telling high school freshman that the pool is on the roof.

In reality, there is no pool at the school, and there is really no such thing as 7-day car insurance for the purpose of proof of insurance to defraud the Michigan Department of Motor Vehicles.

If you need to purchase short-term insurance policies, for instance, you have options.

Say you normally do not drive but will be renting a car to see family in Ohio this July, you can try to go three different routes:

  • One method is through the car rental company and paying with a participating credit card for secondary coverage.
  • If you anticipate driving another family member’s car, then see about piggybacking onto their insurance policy as a covered driver and paying them the difference to their premium. Some policies in some states are very particular about how many drivers, and what drivers can be added to a policy. So, you may or may not be able to use this avenue for coverage.
  • Try buying your insurance through the traditional car insurance companies, and buy regular, run-of-the-mill, short-term coverage. Use bigger name companies that have many customer reviews and even thorough research in Consumer Reports.

Always check the creditworthiness of a car insurance provider because it translates into how fiscally fit they are to remit money for claims. Check out Moody’s, just one of the many credit companies for big business.

Long-term Coverage

If you actually need longer-term coverage, then shop around and find ways to save money on your plan. In Michigan, you need to be extra wise about how you spend your money on insurance.

If you have any question about the validity of a company and its insurance products, then stay clear, especially if a quick online search yields all complaints about fraud.

Having insurance not only fulfills an obligation to your state, but it also protects you if you are involved in an accident.

Here are some things to keep in mind:

  • Compare quotes to make sure you are offered the same policy by different insurers
  • Increase deductibles to achieve lower car insurance premiums
  • Buy multiple insurance products from the same carrier
  • Insure multiple drivers in your household on the same policy
  • Insure multiple vehicles with one carrier to maximize insurance savings
  • If you have the financial means to buy another car, and it costs more to insure your vehicle than a claim would pay, consider dropping collision and comprehensive coverage.

Being wise about how you spend your money on car insurance is the best way to go for legitimate products in Michigan.

Do not fall for the tempting but fraudulent plans out there. They are enticing, but not worth it in the long run.

Before making any final decisions on your insurance company, it is important to learn as much as you can about your local insurance providers, and the coverages they offer. Call your local insurance agent to clear up any questions that you might have. Questions to consider asking include, “What is the best coverage plan for me/my family/my situation?” “What are the minimum coverage requirements in my state and what form of coverage do you recommend?” “Do you guys offer any bundle discounts if I take out both my auto insurance and home insurance with you?” and “What is the average rate of insurance quotes you guys offer?”

Before making any big insurance decisions, use our free tool to compare insurance quotes near you. It’s simple, just plug in your zip code and we’ll do the rest!

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