As a MI resident can we cross state lines for better rates?

UPDATED: Oct 14, 2020

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Can we get and are we allowed to buy both auto and home insurance across state lines for better rates and I live in Michigan.Also which states are you required to buy catastrophe coverage like Michigan .”

Asked February 28, 2018

1 Answer

All states have their own auto and homeowners' insurance rules and regulations. Premium rates also differ by location based on a wide range of factors, such as the number of accidents or claims incidents in a particular geographic area. The state of Michigan actually requires that residents purchase Michigan no-fault insurance within the state. This insurance provides personal injury, property and bodily injury/property damage protections and coverage. An out-of-state policy can't replace or serve as an alternative to Michigan No-Fault insurance. As part of an arrangement with the Michigan Catastrophic Claims Association, any out-of-state "no fault" catastrophic coverage is unacceptable. Some states that require no-fault coverage include Florida, Hawaii, Kansas, Minnesota and New York.

If you refuse to set up this insurance and law enforcement officials discover this fact, you can lose your license, suffer cancellation of your license plate and even receive fines and other monetary penalties. Additional coverage, such as comprehensive and collision, must be sold by an insurance agent licensed by Michigan's Department of Insurance and Financial Services to sell insurance to Michigan drivers.

With homeowner's insurance, an insurer must be licensed to sell homeowner's insurance products that meet any insurance rules and regulations passed in Michigan. You can set up homeowner's insurance coverage through a national or online insurance provider, but you won't receive the same rates as found in other states and geographic locations because premiums are in part determined by location. For example, insurers increase premiums in areas where a high risk of man-made or natural incidents and associated payouts exist. If you have a mortgage agreement with a bank or mortgage company, that company will likely also require that you set up insurance with an agent located in Michigan to make it easier to have face-to-face access to the insurer as needed.

Answered March 1, 2018 by JohnBoy

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