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

Drivers in Michigan pay around $1,924 per year for full coverage car insurance. If you choose minimum coverage, you’ll pay around $856 per year.

Your car insurance premium depends on factors like age, chosen coverage, where you live, driving record and credit history. Drivers aged 22 to 29 pay the most, with costs decreasing as drivers age. Rates become more affordable for drivers in their thirties and reach the lowest rates for those 60 and older. Prices vary based on these factors, but affordable plans are available.

Michigan drivers pay an average of $1,924 annually for full coverage car insurance, which is about $160 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 to give you an idea of what you might spend on minimum or full coverage each month or year.

Car insurance in Michigan is expensive compared to other states. The average annual premium for state minimum coverage is $856 ($71 per month), which is higher than the national average cost of car insurance for minimum coverage at $595 per year ($50 per month). A full coverage policy in Michigan costs an average of $1,924 per year ($160 per month), while the average national equivalent is $1,296 per year ($108 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. Other factors, such as high collision rates and auto theft statistics, 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 $4,586.

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 affected by the selected level of coverage. The monthly cost for minimum coverage is $71, while opting for full coverage with a $1,000 deductible is significantly higher at $160 per month. Despite the premium, full coverage is recommended owing to its more comprehensive protection.

Full coverage insurance includes comprehensive and collision coverages, which raise premiums. Yet, selecting higher deductibles can offset some of these costs. It's essential to remember that the chosen deductible applies per incident for each type of comprehensive and collision coverage.

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, with costs decreasing as drivers age, reflecting the trend that experience on the road may lead to lower premiums. Younger drivers in this age group pay the most at an average annual premium of $2,203. As drivers mature, rates typically decrease, with those aged 30 to 59 paying less, at an average of $1,924, and seniors aged 60 and above benefitting from the lowest average premiums at $1,763 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 male to a family policy averages $5,205 per year. Legally, minors under 18 need a co-signer to purchase insurance; choosing an individual policy could impose premiums of approximately $9,053.

For insights on how age and gender may influence car insurance costs, look at trends and averages across the industry.

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, like the 2022 model year, often bear a higher actual cash value and can be more expensive to repair. Additionally, the latest vehicles 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, it is prudent to secure both comprehensive and collision coverage. This approach safeguards against various incidents, including theft, vandalism and accidents, ensuring drivers are well-protected financially despite the higher value and associated risks of their modern cars.

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: $2,630 per year; $219 per month
• With an at-fault accident: $2,858 per year; $238 per month
• With a DUI: $4,620 per year; $385 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.

You can explore more detailed information by looking into the average cost of insurance in Michigan for each driving record, with options to sort based on coverage type and age group.

Michigan drivers could face an average annual car insurance premium ranging from $1,309 for excellent credit to $4,061 for poor credit.

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. 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.

Explore the detailed table to see how coverage options and age groups affect the average car insurance costs in Michigan for each credit score.

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.