Michigan car insurance costs average $1,652 per year for full coverage and $764 annually for minimum coverage. These rates reflect a 40-year-old driver with good credit and a clean driving history, so your actual costs will vary based on your personal details.
Average Cost of Car Insurance in Michigan
Updated: August 19, 2025
Advertising & Editorial Disclosure
Key Takeaways
Michigan car insurance costs can range anywhere from $764 to $8,694 per year on average depending on your chosen coverage, driving profile and location.
Michigan ranks as one of the most expensive in the country ranking 35th and 40th overall for minimum and full coverage car insurance affordability respectively.
To secure the cheapest car insurance in Michigan, start by deciding your coverage requirements, then research various companies before comparing quotes extensively.
Average Car Insurance Cost In Michigan
| Full Coverage | $138 | $1,652 |
| Minimum Coverage | $64 | $764 |
*Rates are for a 40-year-old driver with good credit and no driving violations who is insuring a 2012 Toyota Camry LE. Minimum coverage represents the minimum required liability coverage in the state while full coverage is representative of a 100/300/100 liability policy with a $1,000 deductible for comprehensive and collision coverage.
Average Michigan Car Insurance Cost By Category
Your individual characteristics, geographic location and vehicle choice all play major roles in determining car insurance costs. Here are average rates for different driver profiles.
| Young Drivers | $116 | $269 |
| Adult Drivers | $63 | $133 |
| Senior Drivers | $79 | $159 |
| Drivers With An Accident | $88 | $191 |
| Drivers With A DUI | $202 | $417 |
| Drivers With A Speeding Ticket | $87 | $188 |
| Drivers With Bad Credit | $131 | $291 |
| Drivers With Low Income | $72 | $158 |
| Drivers With Newer Cars | $93 | $203 |
| Drivers With Old Cars | $65 | $141 |
*We modified rates based on the same 40-year-old driver profile with these changes: young drivers (16 to 25), adults (26 to 64), seniors (65+), low income (fair credit), bad credit (poor credit), newer cars (2025 Toyota Camry LE), older cars (2007 Toyota Camry LE). Driving violation profiles include only that violation.
FIND THE BEST CHEAP PROVIDER FOR YOUR PROFILE
Check out our comprehensive roundup guides to identify the best cheap provider for your profile.
Personalized Average Michigan Car Insurance Costs
General driver categories give you a starting point, but your costs will be different. Our filterable table shows you exact rates based on your personal details.
Data filtered by:Results filtered by:
Select
Coverage Level:100/300/100 Full Cov. w/$1,000 Ded.
Select
Age Group:Adult Drivers
Select
Gender:Female
Select
Credit Alignment:Below Fair
Select
Driving Record:At Fault Accident ($1000-$1999 Prop Dmg)
| 100/300/100 Full Cov. w/$1,000 Ded. | 339 | 4073 |
*Rates for the age groups are based on the following assumptions: young drivers (16 to 25), adults (26 to 64), seniors (65+).
Average Michigan Car Insurance Cost By City
Location affects Michigan car insurance costs. Full coverage rates range from $551 per year in St. Joseph to $3,539 in Hamtramck. Compare rates for your city below.
Data filtered by:Results filtered by:
Select
City:Acme
| Full Coverage | $112 | $1,347 |
| Minimum Coverage | $53 | $635 |
*Rates are based on a 40-year-old driver with good credit and a clean record driving a 2012 Toyota Camry LE. Minimum coverage means basic liability required by state law. Full coverage includes 100/300/100 liability limits plus comprehensive and collision with $1,000 deductibles.
Is Michigan Car Insurance Expensive?
Michigan ranks 40th for full coverage and 35th for minimum coverage affordability, making it one of the costlier states for car insurance. Your actual costs may vary based on your specific city.
Why Is Car Insurance More Expensive In Michigan?
Here's what drives Michigan's car insurance costs:
Unique No-Fault System with PIP Options
Michigan operates under a unique no-fault insurance system that required unlimited personal injury protection coverage until 2019 reforms. Now drivers can choose PIP levels of unlimited, $500,000, $250,000, or $50,000 (for Medicaid recipients). This system means your insurance covers your medical expenses regardless of who caused the accident, contributing to Michigan's historically high premiums.
Costly MCCA Assessment Fees
The Michigan Catastrophic Claims Association charges annual fees to all drivers. For 2024-2025, the fee is $90 for unlimited PIP coverage and $20 for all other PIP options. This mandatory fee helps cover catastrophic claims exceeding $635,000 and has ranged from as low as $3 in 1978 to as high as $220 in 2019.
2019 Reform's Mixed Results
Michigan's 2019 auto insurance reform aimed to reduce the state's notoriously high premiums by allowing PIP choice and prohibiting certain rating factors like gender, marital status, ZIP code, credit score, education, occupation, and home ownership. While average premiums initially dropped 18%, Michigan remains the most expensive state for car insurance with full coverage averaging $3,156 annually.
Seasonal and Weather-Related Risks
Michigan's harsh winters and seasonal weather patterns contribute to higher insurance costs. Winter driving conditions increase accident frequency, while severe weather events damage cars. The state's location in the Great Lakes region also subjects drivers to seasonal risks like ice storms and heavy snowfall that impact claim costs.
Escalating Medical and Repair Costs
Rising medical costs and car repair expenses continue driving up premiums. Vehicle repair costs have increased substantially over the past three years, directly impacting comprehensive and collision coverage. Modern cars packed with computer chips and complex components make repairs exponentially more expensive than older models.
High Insurance Fraud Rates
Michigan faces substantial insurance fraud challenges. The Michigan Department of Insurance received 3,789 fraud reports between July 2023 and June 2024, with 99% being insurance-related and 50% involving auto and no-fault claims. This high fraud incidence makes Michigan a riskier market for insurers, driving up rates across the board.
Prohibited Rating Factors with Loopholes
While the 2019 reform prohibited using certain non-driving factors, insurers found legal ways to work around these restrictions through proxy measures. Insurance companies can still use "territories" instead of ZIP codes and "insurance scores" instead of credit scores, limiting the reform's effectiveness in reducing discriminatory pricing.
Rate Increases Despite Reform
Despite reform efforts, Michigan drivers face substantial rate increases. Insurance rates continue to rise, with some policyholders seeing increases much higher than the typical annual adjustments. The state's rate increases outpace many other states, reflecting ongoing challenges in the insurance market.
Political Landscape and Future Reforms
With recent political changes in Michigan, the landscape for further insurance reform has shifted. This divided government may lead to additional modifications to the insurance system, with potential focus on stricter cost controls and market-driven solutions to address persistent high rates.
How To Lower Car Insurance Costs In Michigan
Want to cut your car insurance costs? Here's how to lower your rates:
- 1
Decide on coverage needs beforehand
Decide on your coverage needs before shopping so you aren't oversold on coverage you don't need. Consider your budget, driving habits, car value, and risk tolerance.
- 2
Research costs and discounts
Know the average costs for your profile and coverage level to spot good deals. Research car insurance discounts you qualify for and check home and auto insurance bundles for additional savings.
- 3
Look into company reputations and coverage options
Cost isn't everything. Consider add-on coverage options and customer experiences with different providers to narrow down which companies to compare. Use industry studies, review forums, and public forums like Reddit for research.
- 4
Compare quotes through multiple means
Compare quotes from multiple companies side by side to find the best deal. Use different methods like online comparison sites and independent agents since pricing varies by method.
Cost of Car Insurance in Michigan: Bottom Line
Michigan car insurance costs are among the highest in the United States. Decide on your coverage needs first, research companies thoroughly, and compare quotes from multiple insurers to get the best rates.
Cost of Car Insurance in Michigan: FAQ
We answer common questions about Michigan car insurance costs:
How much is Michigan car insurance per month?
Michigan car insurance costs $64 monthly for minimum coverage and $138 for full coverage. Rates range from $63 to $417 monthly depending on your driver profile and coverage choice.
What factors affect Michigan car insurance costs?
Your driving record, age, and location affect your rates, with accidents, violations and younger drivers facing higher costs. Urban areas cost more than rural ones. Your car type, coverage amounts, credit score, and annual mileage also impact premiums.
Why is Michigan car insurance so expensive?
Michigan operates a unique no-fault system with optional personal injury protection levels from $50,000 to unlimited coverage. The state's no-fault system requires insurers to pay medical expenses regardless of fault, leading to higher premiums. Michigan also has a high percentage of uninsured drivers at 25.5%, forcing insured drivers to pay higher rates to offset costs from uninsured motorist accidents.
How expensive is Michigan car insurance?
Michigan ranks 35th in affordability for minimum coverage and 40th overall for full coverage, making them one of the most expensive places to get auto insurance in the U.S.
How We Determined Michigan Car Insurance Costs
We used the following profile and modifications of this profile to determine Michigan auto insurance costs across all available zip codes and cities in the state:
- 40-years-old
- Clean driving record
- Good credit
- 2012 Toyota Camry LE
Minimum coverage was defined as a state's minimum liability coverage and full coverage is a policy with 100/300/100 liability limits and a $1,000 deductible for comprehensive and collision coverage.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
sources
- Michigan Catastrophic Claims Association . "MCCA Assessment Fee ." Accessed August 20, 2025.
- Michigan Department of Insurance and Financial Services . "Auto Insurance Frequently Asked Questions ." Accessed August 20, 2025.
- Michigan Department of Insurance and Financial Services . "No-Fault FAQ ." Accessed August 20, 2025.