Cheapest Non-Owner Car Insurance In Michigan 2024

If you’re in Michigan and need non-owner car insurance, Travelers is your best bet, averaging $238 annually. This option offers liability coverage for drivers who don’t own a car but still need to stay insured when using borrowed or rented vehicles.

Does Michigan Allow Non-Owner Car Insurance?

Michigan allows non-owner car insurance, which is designed for those who borrow or rent vehicles. These policies ensure drivers comply with state liability requirements for injuries and property damage.

Cheapest Overall Non-Owner Car Insurance In Michigan

Non-owner car insurance from Travelers is the most budget-friendly option in Michigan, costing $238 per year on average.

Cheapest Non-Owner Car Insurance With A Clean Driving Record

For non-owner car insurance in Michigan, Travelers is the lowest-cost provider for drivers with no violations, with an average yearly rate of $238.

Cheapest Non-Owner SR-22 Car Insurance In Michigan

The cheapest option for non-owner SR-22 car insurance in Michigan is Travelers, with an annual average premium of $458.

What Is Non-Owner Car Insurance?

Non-owner auto insurance is a liability-only policy for people who don’t own a car but still drive. It pays for damages to other people or their property if the insured driver causes an accident. This is a good option for renters, borrowers, or car-sharing users. It doesn’t protect the driver’s injuries or the vehicle being used.

Michigan Minimum Auto Insurance Requirements

In order to drive in Michigan, drivers need to meet certain insurance minimums. These include $50,000 for bodily injury per person, $100,000 per accident, and $10,000 for property damage. Michigan also requires personal injury protection (PIP) coverage of $250,000 to cover medical bills and lost wages. Additionally, uninsured motorist coverage of $50,000 per person and $100,000 per accident is required.

What Is SR-22 Insurance?

An SR-22 is a certificate, not car insurance, that some high-risk drivers must have. It proves that the driver meets the state’s minimum liability insurance requirements. Often required after incidents like DUIs, reckless driving, or repeated traffic violations, the SR-22 is filed with the state’s motor vehicle department by the insurance provider.

While it’s not insurance, having one typically increases premiums because the driver is seen as a higher risk. This requirement typically lasts for a few years, often around three.

Average Cost Of Non-Owner Car Insurance In Michigan

If you often rent or borrow cars in Michigan, knowing the average price of non-owner car insurance is key. This type of coverage offers liability protection without the high cost of a traditional policy, making it a convenient choice for those without a personal vehicle.

Below is a comparison of average annual and monthly premiums from various providers to help you make an informed decision.

Average Cost Of Non-Owner Car Insurance In Michigan – By Age

The cost of non-owner car insurance in Michigan is significantly influenced by a driver’s age. Insurance companies consider younger drivers higher risk due to their inexperience, leading to higher premiums.

In contrast, older drivers tend to receive lower rates, as they are generally viewed as more experienced and less likely to be involved in accidents. For instance, a 20-year-old might pay around $900 annually, while a 50-year-old might pay closer to $500. Below is a table showing the variation in rates based on age.

Average Cost Of Non Owner Car Insurance In Michigan Cities

Location is an important factor in determining how much non-owner car insurance costs in Michigan. Insurance providers factor in elements like traffic patterns, crime rates, and local regulations when setting rates. Urban areas such as Detroit often have higher premiums because of the higher risks posed by dense traffic and elevated crime.

In comparison, smaller towns tend to offer more affordable insurance options. The table below illustrates the average rates for five cities in Michigan.

Average Rates Vs Traditional Car Insurance

Knowing the difference between non-owner car insurance and traditional car insurance can help you make better financial decisions. Non-owner car insurance is designed for those who drive often but don’t own a car. It focuses mainly on liability, offering protection for bodily injury and property damage to others, which tends to make it more affordable than traditional insurance.

Traditional car insurance, however, includes both comprehensive and collision coverage to protect the vehicle itself, resulting in higher premiums. Below is a comparison of average rates from five companies for both types of coverage.

Should You Get Non-Owner Car Insurance In Michigan?

Non-owner car insurance is ideal for individuals who don’t own a vehicle but still require liability protection. Below are the groups who should consider this type of coverage based on their unique circumstances:

• Renters: If you rent cars frequently, non-owner car insurance offers better coverage and savings than relying on rental company policies. It provides consistent liability coverage, which is often more affordable over time.
• Car Borrowers: Those who borrow vehicles from family or friends should consider non-owner insurance. This policy ensures you’re covered for liability in case of an accident, without depending on the vehicle owner’s insurance.
• License Reinstatement: For individuals reinstating their license after a suspension (such as due to a DUI), non-owner insurance is often necessary. It demonstrates financial responsibility and compliance with state regulations when filed with an SR-22.
• Infrequent Drivers: If you drive rarely but want to avoid future premium hikes due to insurance gaps, a non-owner policy can be a good solution. It helps maintain continuous coverage, which insurers favor.
• Drivers Between Cars: If you’ve sold a car or are waiting for a new one, non-owner insurance can provide temporary liability coverage. It helps ensure you stay insured during the transition and maintain a clean driving record.

Average Non-Owner Car Insurance Rates vs Other US States