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The cost of insurance coverage can vary depending on factors such as your age, insurer, coverage levels, driving history and the number of drivers on the policy. Michigan drivers might pay anywhere from $898 (GEICO) to $4,695 (Hanover) annually for full coverage. The average car insurance cost for teenagers can also be significantly steeper, with a 16-year-old male on a family plan paying around $5,205.

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2023

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Average Car Insurance Costs in Michigan (2023)

Overall, Michigan drivers’ average car insurance premium for full coverage is around $1,773 annually. There are numerous factors that can impact premiums, but coverage levels and driving records are among the most important.

Here’s what drivers with different records could pay for full coverage:

  • Clean record: $1,773 annually
  • Ticket: $2,475 annually
  • At-fault accident: $2,706 annually
  • Impaired driving violation: $4,402 annually

You can get cheaper rates by choosing minimum coverage, but you’ll receive less financial protection with this option.

Driving Record
Annual Premium
Monthly Premium

Clean

$881

$73

Clean

$888

$74

Clean

$967

$81

Ticket

$1,314

$110

Ticket

$1,325

$110

At-Fault Accident

$1,385

$115

At-Fault Accident

$1,400

$117

Ticket

$1,428

$119

At-Fault Accident

$1,484

$124

Clean

$1,668

$139

Clean

$1,773

$148

Clean

$2,030

$169

Ticket

$2,343

$195

DUI

$2,348

$196

DUI

$2,351

$196

Ticket

$2,475

$206

DUI

$2,510

$209

At-Fault Accident

$2,579

$215

At-Fault Accident

$2,706

$225

Ticket

$2,795

$233

At-Fault Accident

$3,015

$251

DUI

$4,211

$351

DUI

$4,402

$367

DUI

$4,823

$402

Why Are Car Insurance Rates Expensive in Michigan?

Michigan's expensive auto insurance prices are dramatically higher than the national average of $1,054, with an average annual cost of $1,773 for full coverage. Factors contributing to the high rates may include increased traffic, dense urban population, costlier insurance providers and greater vehicle theft rates. It is also important to consider the role of personal injury protection (PIP) requirements in raising rates in the state.

Average Car Insurance Costs in Michigan by Company

When choosing car insurance in Michigan, it is wise to shop around and compare options since rates can vary drastically between providers. Travelers offer a minimum liability policy at around $101 per year ($931 for full coverage), the cheapest car insurance in Michigan, while Hanover's minimum coverage policy costs approximately $2,615 ($4,695 for full coverage), the most expensive in the state. Depending on your budget, there might be other competitively priced policies available, so take time to explore all options available.

Company
Annual Premium
Monthly Premium

Travelers

$94

$8

Travelers

$101

$8

Travelers

$111

$9

Chubb

$311

$26

Chubb

$375

$31

Chubb

$413

$34

Encompass

$572

$48

GEICO

$587

$49

GEICO

$587

$49

GEICO

$597

$50

Progressive

$626

$52

Progressive

$629

$52

Progressive

$633

$53

Pioneer State Mutual Ins Co

$642

$54

Pioneer State Mutual Ins Co

$649

$54

Encompass

$651

$54

Encompass

$651

$54

Pioneer State Mutual Ins Co

$681

$57

Auto-Owners Insurance Co

$686

$57

Auto-Owners Insurance Co

$714

$60

Farm Bureau Ins of MI

$779

$65

Chubb

$798

$67

Farm Bureau Ins of MI

$810

$67

Westfield

$818

$68

Auto-Owners Insurance Co

$830

$69

Travelers

$840

$70

GEICO

$898

$75

GEICO

$899

$75

GEICO

$903

$75

Travelers

$931

$78

Westfield

$958

$80

Chubb

$961

$80

Progressive

$983

$82

Farm Bureau Ins of MI

$1,006

$84

Travelers

$1,043

$87

Progressive

$1,048

$87

Westfield

$1,060

$88

Chubb

$1,066

$89

Pioneer State Mutual Ins Co

$1,118

$93

Grange Insurance

$1,126

$94

Grange Insurance

$1,142

$95

Encompass

$1,164

$97

Progressive

$1,177

$98

Pioneer State Mutual Ins Co

$1,232

$103

Farmers

$1,244

$104

Farmers

$1,333

$111

Encompass

$1,384

$115

Encompass

$1,384

$115

Grange Insurance

$1,389

$116

Auto-Owners Insurance Co

$1,404

$117

Auto-Owners Insurance Co

$1,409

$117

Pioneer State Mutual Ins Co

$1,427

$119

State Farm

$1,428

$119

Farmers

$1,464

$122

Farm Bureau Ins of MI

$1,484

$124

Auto-Owners Insurance Co

$1,488

$124

State Farm

$1,561

$130

Farm Bureau Ins of MI

$1,601

$133

State Farm

$1,768

$147

Farm Bureau Ins of MI

$1,985

$165

State Farm

$2,031

$169

Westfield

$2,053

$171

Westfield

$2,073

$173

Grange Insurance

$2,193

$183

State Farm

$2,257

$188

Farmers

$2,280

$190

Grange Insurance

$2,346

$195

Grange Insurance

$2,441

$203

Farmers

$2,547

$212

State Farm

$2,567

$214

Hanover

$2,615

$218

Westfield

$2,648

$221

Hanover

$2,679

$223

Farmers

$2,831

$236

Hanover

$3,023

$252

Hanover

$4,332

$361

Hanover

$4,695

$391

Hanover

$5,688

$474

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MONEYGEEK’S MICHIGAN CAR INSURANCE CALCULATOR

When it comes to determining car insurance rates, insurance companies take into account various factors, such as the coverage you choose, your age and your driving history. Fortunately, MoneyGeek has a car insurance calculator for Michigan drivers that can help you estimate the best rate for your specific situation.

Average Car Insurance Costs in Michigan by Coverage Level

The average cost of car insurance in Michigan varies significantly, starting from $881 for the most basic coverage and extending to $2,003 for the highest level of coverage available. When you opt for higher liability limits, your insurance costs will also increase.

Purchasing comprehensive and collision insurance, commonly referred to as full coverage insurance, can result in a substantial increase in your annual premium, potentially amounting to hundreds of dollars. However, it is worth noting that you can reduce the cost of full coverage by opting for a higher deductible.

Average annual car insurance rates by coverage tier

Opting for minimal coverage in Michigan is the most affordable choice, but it's crucial to understand that these policies do not include comprehensive or collision coverage and come with the lowest liability limits.

Insurance companies frequently provide more extensive coverage options, often abbreviated as 50/100/50 or 100/300/100. These liability limits include:

  • $50,000 bodily injury liability per person
  • $100,000 bodily injury liability per accident
  • $50,000 property damage liability per accident

For drivers seeking full coverage protection, there are liability options available up to 300/500/300. These policies generally offer coverage for both the policyholder and other drivers involved in an accident.

In Michigan, the mandatory inclusion of personal injury protection or uninsured motorist insurance results in a minimum policy being more costly when compared to other states.

Average Car Insurance Costs in Michigan by Age

Age is a crucial factor in determining car insurance costs, particularly in Michigan and other states, where very young or inexperienced drivers often face higher rates.

Here are the average full coverage costs for three different age groups:

  • 22-29: $2,030 annually
  • 30-59: $1,773 annually
  • 60 and older: $1,668 annually

Between the ages of 30 and 60, car insurance rates typically remain fairly consistent, with only a slight decrease for drivers in their 60s and beyond. However, drivers in their 20s usually pay more for their coverage. Car insurance for new drivers over the age of 30 might cost the same as coverage for drivers in their 20s.

Age
Annual Premium
Monthly Premium

22-29

$2,030

$169

22-29

$967

$81

30-59

$881

$73

30-59

$1,773

$148

60 +

$888

$74

60 +

$1,668

$139

Average Car Insurance Costs in Michigan for Teens

The average cost of car insurance for teenagers in Michigan is considerably higher, with costs for a 16-year-old male on a full coverage family plan being $5,205 and on an individual plan, $9,053. As they age, costs tend to decrease. A 19-year-old male driver on a family plan typically pays an average of $4,123 per year, and this amount drops to approximately $3,210 once they turn 22. Keep in mind that teens under 18 might need a parent’s consent to purchase coverage.

In most states, there is a gap between 16-year-old males and females, with males paying more. However, in Michigan, rating by sex is prohibited, which likely results in lower costs for males compared to other states.

Insurance rates can vary among providers, meaning that some insurers may offer more affordable car insurance options in Michigan for teenagers than others.

Age
Annual Family Premium
Monthly Family Premium
Annual Individual Premium
Monthly Individual Premium

16

$5,205

$434

$9,053

$754

16

$5,205

$434

$9,053

$754

17

$5,041

$420

$6,894

$574

17

$5,041

$420

$6,894

$574

18

$4,519

$377

$6,235

$520

18

$4,519

$377

$6,235

$520

19

$4,123

$344

$4,067

$339

19

$4,123

$344

$4,067

$339

20

$4,355

$363

$3,733

$311

20

$4,355

$363

$3,733

$311

21

$3,261

$272

$2,769

$231

21

$3,261

$272

$2,769

$231

22

$3,189

$266

$2,609

$217

22

$3,210

$268

$2,609

$217

23

$3,354

$280

$2,449

$204

23

$3,376

$281

$2,449

$204

24

$3,181

$265

$2,332

$194

24

$3,202

$267

$2,332

$194

25

$2,632

$219

$1,909

$159

25

$2,650

$221

$1,909

$159

Average Car Insurance Costs in Michigan for New Cars vs. Older Cars

The difference in insurance costs for new cars ($1,800 per year) and old cars ($1,429 per year) in Michigan amounts to a 26% disparity. New cars generally cost more to insure due to factors such as a higher actual cash value (ACV), increased repair expenses and a greater risk of theft. The ACV refers to the amount an insurer would have to pay you in case of a total loss or theft. An older vehicle with a lower ACV can lead to reduced insurance rates, as insurers would be responsible for a smaller payout in the event of a claim.

We recommend that drivers of newer vehicles with a higher ACV think about opting for full coverage insurance. This type of insurance protects you against damage to your own car rather than solely focusing on your liability to others.

Model Year
Annual Premium
Monthly Premium

2022 Vehicle

$680

$57

2022 Vehicle

$710

$59

2012 Vehicle

$713

$59

2012 Vehicle

$740

$62

2022 Vehicle

$763

$64

2012 Vehicle

$793

$66

2012 Vehicle

$1,301

$108

2012 Vehicle

$1,429

$119

2012 Vehicle

$1,558

$130

2022 Vehicle

$1,613

$134

2022 Vehicle

$1,800

$150

2022 Vehicle

$1,979

$165

Average Car Insurance Costs in Michigan by Driving Record

Maintaining a clean driving record has its advantages. A lower risk factor associated with a driver's record results in more affordable insurance premiums. The following figures represent the average amount car owners pay for annual coverage:

  • Clean record: $1,773 annually
  • Ticket: $2,475 annually
  • At-fault accident: $2,706 annually
  • DUI: $4,402 annually

The severity of a violation, such as an impaired driving violation, can have a significant impact on your insurance rates, and different insurance providers may impose varying degrees of penalties on drivers with poor records. Therefore, it's advisable to explore various options and compare rates. This can help you find insurers that offer more affordable car insurance for Michigan drivers with less-than-perfect records.

Driving Record
Annual Premium
Monthly Premium

Clean

$881

$73

Clean

$888

$74

Clean

$967

$81

Ticket

$1,314

$110

Ticket

$1,325

$110

At-Fault Accident

$1,385

$115

At-Fault Accident

$1,400

$117

Ticket

$1,428

$119

At-Fault Accident

$1,484

$124

Clean

$1,668

$139

Clean

$1,773

$148

Clean

$2,030

$169

Ticket

$2,343

$195

DUI

$2,348

$196

DUI

$2,351

$196

Ticket

$2,475

$206

DUI

$2,510

$209

At-Fault Accident

$2,579

$215

At-Fault Accident

$2,706

$225

Ticket

$2,795

$233

At-Fault Accident

$3,015

$251

DUI

$4,211

$351

DUI

$4,402

$367

DUI

$4,823

$402

Average Car Insurance Costs in Michigan by City

In Michigan, auto insurance companies can’t use your ZIP code to determine premiums, but other elements can result in varying average insurance rates between cities. Ann Arbor and Detroit may be only a few miles apart, but their car insurance premiums could not differ more, including $1,361 for the former versus an astonishingly high annual rate of almost $3,987 for the latter. Factors such as population density and theft rates contribute to this variation.

City
Full Coverage Annual Premium
Minimum Coverage Annual Premium

Ann Arbor

$1,538

$749

Ann Arbor

$1,361

$694

Ann Arbor

$1,271

$689

Detroit

$4,473

$2,495

Detroit

$3,987

$2,295

Detroit

$3,711

$2,258

Grand Rapids

$1,565

$731

Grand Rapids

$1,377

$677

Grand Rapids

$1,290

$674

Lansing

$1,680

$881

Lansing

$1,486

$813

Lansing

$1,393

$805

Sterling Heights

$2,317

$1,317

Sterling Heights

$2,053

$1,211

Sterling Heights

$1,938

$1,197

Warren

$2,898

$1,720

Warren

$2,571

$1,579

Warren

$2,430

$1,566

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FAQ About Car Insurance Costs in Michigan

The rates you see can vary due to a number of factors, such as individual circumstances and state-specific regulations. To help answer any remaining inquiries, here are some frequently asked questions regarding Michigan’s car insurance costs.

About Mark Fitzpatrick


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Mark Fitzpatrick is a senior content director at MoneyGeek with over five years of experience analyzing the insurance market, conducting original research and creating content that can be personalized for every buyer. He has been quoted on insurance topics in several publications, including CNBC, NBC News and Mashable.

Mark earned a master’s degree in Economics and International Relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his economics and insurance knowledge to bring transparency around financial topics and help others feel confident in their money moves.