How Much Is Car Insurance in Michigan? (2023)

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.