How Much Is Car Insurance in Michigan? (December 2024)


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Drivers in Michigan pay an average of $1,912 per year for full coverage car insurance. For minimum coverage, you can expect to pay around $826 annually.

Your age, coverage level, location, and credit history affect your insurance costs. A clean driving record can help you secure lower rates, as insurers consider these when setting premiums.

Why Trust MoneyGeek? We analyzed data and quotes from Quadrant Information Services and the Michigan Department of Insurance and Financial Services to get the most precise average costs for various Michigan drivers.

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These rates reflect the average cost of car insurance in Michigan as of December 2024.

50,284Quotes Analyzed
 
14Companies Compared
 
74ZIP Codes

Average Car Insurance Costs in Michigan

Michigan drivers pay an average of $1,912 annually for full coverage car insurance. Understand the average cost in your state to assess if you're getting a fair or inflated quote, and compare car insurance quotes to save money potentially.

Here's a breakdown of what you could pay for auto insurance on minimum or full coverage policies:

100/300/100 Full Cov. w/$1,000 Ded.$1,912$159
100/300/100 Liability Only$896$75
State Minimum Liability Only$826$69

Why Are Car Insurance Rates Moderate in Michigan?

Car insurance in Michigan is more expensive than in other states. The average annual premium for minimum coverage is $902 ($75 per month), compared to the national average of $1,370 per year ($114 per month). For full coverage, Michigan drivers pay an average of $1,912 per year ($159 per month), while the national average is $1,370 per year ($114 per month).

Several factors contribute to Michigan's high rates. The state's no-fault insurance laws require drivers to have personal injury protection coverage with higher minimum limits, which offers unlimited medical benefits and raises costs. Also, Michigan has many uninsured drivers and often experiences high rates of costly insurance claims.

Average Car Insurance Costs in Michigan by Company

Car insurance premiums fluctuate from one company to another, even within the same state. For example, in Michigan, GEICO offers the cheapest full coverage at $1,027 per year, while Hanover provides the most expensive average annual premium at $3,953.

Compare quotes from different providers to find the cheapest car insurance in Michigan that aligns with your needs.

Data filtered by:Results filtered by:
Coverage:
Coverage:Full Coverage
Age Group:
Age Group:30-59
GEICO$1,027$86
Travelers$1,253$104
Progressive$1,373$114
Auto-Owners Insurance Co$1,416$118
Encompass$1,430$119
Chubb$1,494$124
Westfield$1,662$138
Farm Bureau Ins of MI$1,841$153
Pioneer State Mutual Ins Co$1,855$155
Grange Insurance$1,856$155
State Farm$2,578$215
Farmers$3,112$259
Hanover$3,953$329
Compare Auto Insurance Rates

Ensure you're getting the best rate for your auto insurance. Compare quotes from the top insurance companies.

Average Car Insurance Costs in Michigan by Coverage Level

The cost of car insurance in Michigan is also influenced by the level of coverage you choose. For instance, choosing minimum coverage costs approximately $69 monthly, while opting for full coverage with a $1,000 deductible averages $159 monthly. It's recommended to select full coverage because it provides more comprehensive financial protection against a range of potential road mishaps.

Expanding your policy with comprehensive and collision coverage will indeed raise your premium; however, electing higher deductibles can offset some of that increase. Remember, the deductible amount is specifically applicable to each comprehensive and collision claim you make.

For more detailed information on full coverage insurance, visit MoneyGeek.

State Minimum Liability Only$826$69
100/300/100 Liability Only$896$75
300/500/300 Liability Only$1,004$84
State Minimum Liability w/ Full Cov. w/$1,500 Ded.$1,759$147
100/300/100 Full Cov. w/$1,500 Ded.$1,828$152
State Minimum Liability w/ Full Cov. w/$1,000 Ded.$1,842$154
100/300/100 Full Cov. w/$1,000 Ded.$1,912$159
300/500/300 Full Cov. w/$1,500 Ded.$1,931$161
300/500/300 Full Cov. w/$1,000 Ded$2,014$168
State Minimum Liability w/ Full Cov. w/$500 Ded.$2,078$173
100/300/1000,000 - 500 comp_coll$2,147$179
300/500/300 Full Cov. w/$500 Ded.$2,250$187

Minimum Car Insurance Requirements in Michigan

In Michigan, the minimum car insurance requirements include bodily injury liability of $50,000 per person, $100,000 per accident, property damage liability of $10,000 per accident and unlimited personal injury protection (PIP) per person. Uninsured/underinsured motorist coverage isn't required.

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    $50,000 for bodily injury liability per person

    Michigan requires a minimum of $50,000 in bodily injury liability coverage per person to cover expenses related to injuries you cause to someone else in an accident.

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    $100,000 for bodily injury liability per accident

    The state minimum for bodily injury liability per accident in Michigan is $100,000, ensuring coverage for all persons injured in a single accident.

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    $10,000 for property damage liability per accident

    Michigan law mandates a minimum of $10,000 for property damage liability to pay for damage you cause to another person's property in an at-fault accident.

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    Unlimited personal injury protection (PIP) per person

    Michigan's no-fault insurance system includes unlimited PIP per person, covering medical expenses and lost wages regardless of who is at fault.

Average Car Insurance Costs in Michigan by City

Your location can heavily influence car insurance premiums. In Michigan, Ann Arbor has the most affordable full coverage at $1,361 per year, whereas Detroit has the highest at $3,987.

Various factors — including driving history, vehicle make and model, and coverage options — determine car insurance rates in Michigan. Credit score, age and even local weather also affect premiums in the state.

Ann Arbor$1,361$694
Detroit$3,987$2,295
Grand Rapids$1,377$677
Lansing$1,486$813
Sterling Heights$2,053$1,211
Warren$2,571$1,579
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MONEYGEEK EXPERT TIP

Massachusetts prohibits car insurance companies from rating policyholders based on age, but age can still be a factor. Hawaii and Montana don't allow insurers to use age or gender in setting rates. No state explicitly forbids only age as a rating factor.

Average Car Insurance Costs in Michigan by Age

Age significantly influences car insurance costs in Michigan. Drivers aged 22 to 29 pay the most, at an average annual premium of $2,193. As drivers age, rates typically decrease, with those aged 30 to 59 paying less, at an average of $1,912. Seniors aged 60 and above benefit from the lowest average premiums, at $1,748 annually.

Data filtered by:Results filtered by:
Coverage:
Coverage:100/300/100 Full Cov. w/$1,000 Ded.
22-29$2,193$183
30-59$1,912$159
60 +$1,748$146

Average Car Insurance Costs in Michigan for Teens

In Michigan, age and gender affect car insurance rates. For example, adding a 16-year-old male driver to a family policy averages $5,205 annually, while an individual policy costs about $9,053. Minors under 18 need a co-signer to buy insurance.

Data filtered by:Results filtered by:
Gender:
Gender:Male
16$5,205$9,053
17$5,041$6,894
18$4,519$6,235
19$4,123$4,067
20$4,355$3,733
21$3,261$2,769
22$3,210$2,609
23$3,376$2,449
24$3,202$2,332
25$2,650$1,909

Average Car Insurance Costs in Michigan for New Cars

The average annual cost for full coverage on a 2012 car is $1,429, while a 2022 model costs about $1,800. Newer models have a higher actual cash value, can be more expensive to repair and are more likely to be stolen, all of which raise insurance premiums due to increased financial risk for insurers.

Michigan drivers with newer vehicles should consider comprehensive and collision coverages to protect against theft, vandalism and accidents.

Data filtered by:Results filtered by:
Coverage:
Coverage:Full Coverage
Age Group:
Age Group:30-59
2012 Vehicle$1,429$119
2022 Vehicle$1,800$150
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ACTUAL CASH VALUE

When filing a comprehensive or collision claim, your insurance company uses your car's actual cash value (ACV) to determine the payout amount. The ACV reflects your vehicle's worth at the time of the claim based on age, condition and other factors.

Selecting minimum coverage auto insurance will influence the ACV's role in claim payments. Knowledge of your car's ACV helps you understand the potential payout from your insurer should you experience a loss.

Average Car Insurance Costs in Michigan by Driving Record

Your driving record significantly affects car insurance costs. In Michigan, here are the average premiums based on different records:

  • With a ticket: $2,615 per year; $218 per month
  • With an at-fault accident: $2,829 per year; $236 per month
  • With a DUI: $4,642 per year; $387 per month

More severe violations lead to higher premiums, and these impacts last as long as the violations are on your record, with durations varying by state.

Data filtered by:Results filtered by:
Coverage:
Coverage:100/300/100 Full Cov. w/$1,000 Ded.
Age Group:
Age Group:30-59
Clean$1,912$159
Ticket$2,615$218
At-fault Accident$2,829$236
DUI$4,642$387

Average Car Insurance Costs in Michigan by Credit Score

Credit scores play a crucial role in determining car insurance rates in Michigan. Insurers view credit scores as indicators of a driver's reliability and likelihood of filing claims.

For example, drivers with excellent credit (800 and above) face an average annual premium of $1,309, while those with poor credit (below 670) can see their premiums soar to $4,061.

Generally, a higher credit score results in lower insurance costs. A good credit score ranges from 670 to 739, while very good scores fall between 740 and 799. Lower scores can lead to higher premiums.

Data filtered by:Results filtered by:
Coverage:
Coverage:100/300/100 w/ $1000 Deductible
Age Group:
Age Group:30-59
Excellent$1,309$109
Good$1,656$138
Fair$2,109$176
Below Fair$2,939$245
Poor$4,061$338
Compare Auto Insurance Rates

Ensure you're getting the best rate for your auto insurance. Compare quotes from the top insurance companies.

Factors Affecting Car Insurance Rates in Michigan

Understanding the factors influencing car insurance rates can help drivers find affordable coverage that suits their needs. Key elements affecting premiums in Michigan include:

  • Location: Urban areas with higher traffic congestion and theft rates typically lead to pricier car insurance due to increased risk of accidents and claims.
  • Age and gender: Younger drivers often face higher rates due to inexperience, while gender can influence premiums based on historical accident data.
  • Driving record: A clean driving record can lead to lower car insurance rates, while accidents, tickets and violations suggest higher risk and result in increased costs.
  • Credit score: Michigan allows credit scores to be used in determining car insurance rates, with higher scores generally leading to more favorable premiums.
  • Vehicle type: Cars that are more expensive to repair or are frequent targets for theft may have higher insurance costs.
  • Coverage level: Opting for higher coverage limits or additional policies such as collision insurance and comprehensive insurance will impact your rate.
  • Insurance history: Gaps in insurance coverage or claims history can increase your premiums.
  • Annual mileage: The more you drive, the higher the chance of an incident, which can increase your insurance rates.
  • Marital status: Married individuals may receive lower rates, as they're statistically less likely to file claims than single drivers.

Carefully compare car insurance quotes to find coverage that fits your needs and budget, ensuring you’re protected on Michigan's roads at a reasonable cost.

How to Save Money on Car Insurance in Michigan

To find affordable car insurance in Michigan, compare prices from different companies. Raising your deductible can lower your monthly bill. Also, check for discounts you're eligible for, like for safe driving or having a car alarm. These strategies can lead to cheaper minimum coverage insurance.

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    Shop around

    Comparing rates from multiple insurers can help you find the cheapest car insurance in Michigan. Don't settle for the first quote you receive.

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    Maintain a good driving record

    A clean driving record without accidents or violations can significantly lower your insurance rates because it shows insurers you're a low-risk driver.

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    Bundle insurance policies

    Bundling car insurance with other policies like homeowners insurance can unlock discounts, making your overall insurance costs more affordable.

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    Increase your deductibles

    Opting for higher deductibles can lower your premiums, but ensure you can afford the deductible if you need to make a claim.

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    Look for discounts

    Insurers offer various discounts, such as for safe driving, good students or anti-theft devices. Always ask what discounts are available to you.

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    Choose a vehicle wisely

    Driving a car that's cheap to insure, like models with good safety ratings, can lead to lower insurance premiums.

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    Consider usage-based insurance

    If you're a low-mileage driver, usage-based insurance programs can offer lower rates by tracking your driving habits.

FAQ: Car Insurance Costs in Michigan

Due to varying rates, understanding the average cost of car insurance in Michigan can be challenging. Get answers on what you might pay for coverage in the Great Lake State.

What are the minimum car insurance requirements in Michigan?

What is the average cost of full coverage and minimum coverage auto insurance in Michigan?

What is the average cost of car insurance for a 22-year-old in Michigan?

What are the cheapest car insurance companies in Michigan?

About Mark Fitzpatrick


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Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick 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 knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.