Residents of The Great Lakes State paid a pretty penny for auto insurance in 2007. According to the Insurance Information Institute, the average price for Michigan auto insurance was $928, $133 more than the U.S. average. Staying abreast of state laws and statistics will offer some insight as to what goes into determining your Michigan auto insurance rates.

Obey the Law
The State of Michigan requires drivers to purchase personal injury protection (PIP), property protection (PPI), and residual bodily injury and property damage liability insurance. Not only will you be held responsible for all damages resulting from an accident if you drive without no-fault insurance, you can be sued, convicted of a misdemeanor, have your license suspended, fined and/or receive jail time. On the up side, Michigan claims it has the most comprehensive no-fault auto insurance system in the nation. If you are insured and injured in an accident, your family will be provided with unlimited medical and rehabilitation benefits, wage loss benefits and $20 per day for replacement services for up to three years. That's a lot of incentive for drivers to stay legal. Use a free service like LocalInsurance to ensure you're getting the best Michigan auto insurance rates.

Theft Protection
With the exception of Detroit, the overall average of vehicle thefts in the Great Lakes State isn't too alarming. Even so, you'll garner discounts on your Michigan auto insurance rates if you safeguard your vehicle from thieves, especially if you frequent The Motor City to work. But if you hit The D regularly for things like Red Wings games or live music, it's also a good idea to protect your vehicle against thieves who prey on parked cars. According to the FBI Crime in the United States report, there were 16,441 motor vehicle thefts in Detroit in 2008. To avoid becoming an Amityville statistic, the National Association of Insurance Commissioners recommends using a layered approach to safeguard your vehicle against thieves. First of all, use common sense by parking in a well-lit area, removing your keys from the ignition, locking your doors and closing your windows. Second, use a warning device such as an alarm, steering column collar or window etching. Next, using tools like smart keys or kill switches will block thieves from hotwiring your car. Last, a tracking device that emits a signal to police or a monitoring station will ensure you can locate your vehicle in the event it is stolen and can lead police to chop shops. Best of all, you're sure to garner savings from your Michigan auto insurance.

Keep the Lions at Bay
Fast-talking sales reps try to influence you into buying their products. You don't have to worry about cold-calling companies if you use a free service like LocalInsurance to gather quotes. LocalInsurance will match your profile to several companies in your area for numerous Michigan auto insurance rates all from the comfort of your computer.

To find more information on the auto insurance requirements in Michigan, visit these useful links: