When it comes to finding the cheapest coverage for motorists the most important step is to comparison shop. Many are under the misconception that the state determines what insurers are allowed to charge for policies which is untrue. What is true is that the state does regulate what can be charged in order to protect consumers as well as keep pricing fair in order to ensure people can afford to be insured and keep uninsured motorists off of the roads. Since providers can determine their own rates (which must be approved by the state) it is wise to shop around for the cheapest quotes. Companies base rates on categories that drivers fall in to and the losses that they have incurred with those particular motorists. Therefore, there is no single company that can fit everyone's budget. Depending on a particular driver's statistics they may find cheap car insurance with one carrier, while an friend or family member can find savings with another provider.

The Wolverine State requires residents to purchase quite a bit of coverage to satisfy the legal requirements to operate a vehicle. Unfortunately, this translates into higher premiums for motorists and residents of Detroit are paying some of the highest premiums in the nation and finding it almost impossible to keep automobiles insured. Similar to states such as New York, which residents also pay a hefty amount for insurance, MI requires multiple levels of coverage in hopes to best protect its residents. The Michigan auto insurance requirements mandate that as a minimum all operators must carry a policy that includes Personal Injury Protection (PIP), Property Protection (PPI), Residual Bodily Injury and Property Damage Liability (BI/PD). A policy such as this will be needed to register a vehicle and obtain license plates and with such extensive coverage needed, one can see why the cost to become insured can be quite expensive. States such as California only require policies containing bodily injury and property damage liability. The difference is that MI is a "No-Fault" state which coverage that provides compensation to policyholders regardless of who is at fault for causing the traffic accident and CA policies cover the other party if an insured causes a collision. No-fault states use this system in hopes to keep lawsuits from being filed since payment is readily available.