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

Drivers in Michigan pay around $1,980 per year for full coverage car insurance. If you choose minimum coverage, you’ll pay around $904 annually.

A person's age, the level of coverage they choose and the area they live in all influence costs. Your driving record and credit history are also important factors insurance companies look at when setting rates, so keeping a clean driving record and good credit can contribute to more affordable car insurance options.

Michigan drivers pay an average of $1,980 annually for full coverage car insurance, which is about $165 monthly. 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:

Car insurance in Michigan is expensive compared to other states. The average annual premium for state minimum coverage is $904 ($75 per month), which is higher than the national average cost of car insurance for minimum coverage at $615 per year ($51 per month). A full coverage policy in Michigan costs an average of $1,980 per year ($165 per month), while the average national equivalent is $1,330 per year ($11 per month).

Multiple factors influence Michigan's high insurance rates. One factor is the state's no-fault insurance laws, which require drivers to carry personal injury protection (PIP) coverage, with higher minimum coverage limits that include personal injury protection. This coverage pays for medical expenses, which drives up costs. Other factors, such as Michigan's high levels of uninsured drivers, the state's unique no-fault insurance system providing unlimited medical and rehabilitation benefits, and often experiencing severe weather, also contribute to the elevated insurance premiums in Michigan.

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 $4,776.

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

The cost of car insurance in Michigan is also influenced by the level of coverage you select. For instance, opting for minimum coverage costs about $75 monthly, whereas full coverage with a $1,000 deductible will average at $165 per month. Even though it's more expensive, a full coverage policy is recommended because it provides more comprehensive financial protection.

While including comprehensive and collision coverage will increase your premium, selecting higher deductibles can help manage these costs. The deductible amount is applicable to each comprehensive and collision coverage, meaning it's what you pay out-of-pocket for a claim before your insurance coverage kicks in.

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 is not required.

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 per year.

Car insurance rates in Michigan are determined by various factors, including driving history, vehicle make and model and coverage options. Credit score, age and even local weather conditions also play a role in the cost of car insurance in the state.

Age significantly influences car insurance costs in Michigan. Drivers aged 22 to 29 pay the most, at an average annual premium of $2,270. As drivers mature, rates typically decrease, with those aged 30 to 59 paying less, at an average of $1,980. Seniors aged 60 and above benefit from the lowest average premiums, at $1,825 annually.

In Michigan, age and gender can impact car insurance rates, with 16-year-old male drivers facing the highest premiums. For instance, adding a 16-year-old boy to a family policy averages $5,205 per year. Legally, minors under 18 need a co-signer to purchase insurance, and choosing an individual policy could impose premiums of approximately $9,053.

The average annual cost for full coverage on a 2012 car model is $1,429, while the premium for a newer 2022 model with identical coverage soars to $1,800. This stark contrast in premium costs highlights the evolving financial implications of insuring newer vehicles.

Newer car models often bear a higher actual cash value and can be more expensive to repair. Additionally, they may carry a higher risk of theft, all contributing to a substantial increase in insurance premiums due to the greater financial risk for insurers.

For Michigan drivers with a newer model vehicle, secure both comprehensive and collision coverage to safeguard against various incidents, including theft, vandalism and accidents.

Your driving record is a major factor in the cost of car insurance in Michigan. Here are the average costs based on different records:

• With a ticket: $2,722 per year; $227 per month
• With an at-fault accident: $2,947 per year; $246 per month
• With a DUI: $4,765 per year; $397 per month

The more severe the driving violation, the higher the premiums you can expect to pay for car insurance in Michigan. These violations will continue to impact your premiums as long as they remain on your record, with durations differing by state.

Credit scores are pivotal in determining your car insurance rates in Michigan. Insurance companies consider credit scores as indicators of a driver's reliability and the likelihood of filing a claim. Michigan drivers could face an average annual car insurance premium ranging from $1,309 for excellent credit to $4,061 for poor credit.

A higher score often correlates with lower risks, leading to more affordable premiums. A good credit score is generally between 670 to 739, while a score from 740 to 799 is considered very good and excellent scores are 800 and above. Scores below 670 fall into the fair and poor categories, potentially leading to higher insurance costs.

Understanding the factors that affect car insurance rates in Michigan can help drivers secure affordable coverage tailored to their needs. Here's what influences premiums in the Wolverine State:

• 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 the use of credit scores 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 a history of claims can increase your insurance premiums. Annual Mileage: The more you drive, the higher the chance of an incident, which can potentially increase your insurance rates.
• Marital Status: Married individuals may receive lower rates, as they are statistically less likely to file claims than single drivers.

Carefully comparing car insurance quotes is key to finding the coverage that best suits your needs and budget, ensuring you're protected on Michigan's roads at a cost-effective rate.

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.

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.