This distinction has a significant impact on how car insurance works in Michigan. Drivers living in this state must carry a minimum of 20/40/10 in bodily injury and out-of-state property damage liability coverage, as well as up to $1 million of in-state property protection. Drivers also need personal injury protection (PIP), which is what kicks in to cover all reasonable and necessary medical expenses after a crash.
Ohio, on the other hand, is not a no-fault state. Drivers are legally required to carry 25/50/25 in bodily injury and property damage coverage. Because drivers are assigned fault for crashes in Ohio, there is no need for PIP coverage, and so state-minimum car insurance tends to be less expensive in Ohio than in Michigan.
Somebody moving from Michigan to Ohio, then, will want to make sure their bodily injury protection is high enough to meet state minimums and that they're no longer paying for PIP if it is an optional coverage.
Do you need to switch insurance companies?
While buying a new auto insurance policy may seem like a hassle, the good news is that if your current carrier sells insurance in your new state, you can typically just get a new policy from the same company. You'll usually only need to switch carriers if your current insurer doesn't do business in your new state.
If you're not moving out-of-state, you won't need to change policies. However, you will need to update your address on your current policy to ensure that your coverage is up-to-date.