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Your Guide to Michigan 7 Day Insurance

Photo by Mike Kline (notkalvin)Getty Images

Michigan 7 day insurance was once legal but now has been banned by the state. It was created for those who needed to insure their vehicle temporarily until they could find long-term insurance. The state eliminated this type of insurance because many drivers would sign up to register their vehicle, then let their policy lapse and continue to drive uninsured.

The Cost of 7 Day Insurance

This type of insurance was originally designed for those who had a hard time finding a standard policy they could afford since Michigan has some of the highest insurance rates. However, the policy’s actual cost would be almost three times that of a standard policy, so opting for regular insurance was still the more economical option.

Michigan Insurance Costs

According to Bankrate, average insurance rates in Michigan are about $ 1231 per year, and seven-day policies used to run around $3693 annually. Rates would be determined by several factors, including:

  • Credit score
  • Driving history
  • Age
  • Location

    What Happens If You Try to Buy 7 Day Insurance?

    Since seven-day insurance has now been banned by the state, according to ValuePenguin, attempting to purchase it could result in potential legal consequences. Any attempt to purchase this insurance will be seen as a way to perpetrate fraud, even if it is done so accidentally.

    Michigan Is a No-Fault State

    Michigan is a no-fault state, which is part of the reason that premiums can run so high. Because of this, drivers are required to carry higher minimum coverages for personal injury protection and property protection as well. With a no-fault policy, each individual is responsible for their own vehicle damage and injury, and their personal insurance company will have to cover the cost.

    Personal Injury Protection in Michigan

    As stated by Car Insurance Companies, Michigan is also well-known for its high level of personal injury protection, which can provide many benefits to those involved in an accident, such as:

    • Reimbursement for lost wages
    • Physical therapy
    • Money towards medical expenses
    • Funeral costs

      Michigan Insurance Minimums

      To legally drive in the state of Michigan, you will be required to carry the minimum levels of insurance set by the state. These minimums include:

      • Bodily injury protection: $20,000
      • Bodily injury liability per accident: $40,000
      • Per-accident property damage liability: $10,000

        While the minimums mentioned above are the only requirements for insurance, the insurance industry recommends at least:

        • Bodily injury protection: $100,000
        • Bodily injury liability per accident: $300.000
        • Per accident property damage liability: $50,000

          Liability is a significant concern in states that are considered at-fault, because you can be sued for money in excess of your policy. In the state of Michigan, you cannot collect noneconomic damages unless a driver is at least 50 percent at fault for an accident.

          Getting Long-Term Coverage

          When looking for long-term coverage in Michigan, you need to be extra cautious due to the cost and risk of obtaining a fraudulent policy. There are some ways that you can find affordable coverage without ending up with a policy that violates state law, including:

          • Shop around to get competitive quotes.
          • Opt for higher deductibles.
          • Bundle multiple policies from the same insurance carrier.
          • Include all household drivers under one policy.
          • Include multiple vehicles on one policy.
          • If you have a car with little value, consider dropping collision and comprehensive.

            Types of Insurance Policies

            There are a few different types of policies to consider when looking for one to suit your needs. The type you choose will depend on how much you can afford and what type of coverage you need.


            According to QuoteWizard, one type of insurance is a short-term policy that will last for either six or 12 months. With these policies, you will be able to cancel at any time, though the company may charge a fee. Still, this fee would be lower than what seven-day insurance once cost.


            You can get significantly lower premium rates if you are not a high-mileage driver and seek out usage-based insurance. In these policies, you will only be charged based on the miles you drive and will have the ability to cancel or pause your policy if you are unable to extend your policy for a length of time.

            Minimum Liability Coverage

            You can also save money on your premiums by choosing to only insure your vehicle for the minimum coverage, which runs, on average, about $995 per year. Be cautious when choosing this option, as it may not be enough to cover the expenses if you are found to be at fault, and you could end up having to pay out of pocket for repairs or medical expenses.

            Why a Standard Policy Is Better

            Not only was a seven-day policy significantly more expensive, but it also came with other drawbacks that made having a standard policy the better option. With a standard policy, you can get a refund of paid premiums if you switch to another carrier after finding better rates, whereas with a seven-day policy, you would be required to pay the full amount even if you got a new policy before the week was up.

            The Dangers of Driving without Insurance in Michigan

            If you are caught operating a vehicle without the proper coverage, you may be required to pay a fine of $200 to $500. Repeated offenses could even land you in jail. Fines are not the only thing you have to worry about. If you are involved in an accident and do not have insurance, you will be financially responsible for the medical and repair bills for yourself and the other party in the accident, even if the other party was found to be at fault. So even if you are a cautious driver, you still run a big risk from driving without insurance in the state.

            By nature, most auto insurance policies are short-term, which allows them to be acquired with little notice. Even if you don’t have the time to shop for the best long-term rates before driving your vehicle off the lot, you can safely buy short-term insurance to cover you in the meantime until you find the right policy for you.

            Check this out if you need additional information, resources, or guidance on car insurance.


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            What is Michigan 7-Day Insurance? Should I Get It? |

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            7-Day Car Insurance in Michigan |

            Where Can I Get 7-Day Car Insurance in Michigan? |

            Car Insurance Michigan: Everything You Need to Know |

            How Does an At-Fault Accident Affect Insurance? Everything You Need to Know |

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