How Much Is Car Insurance in Michigan? Rates by Coverage Level, Age, Driving History and Location

The average car insurance cost in Michigan is $4,333, the most expensive in the country, more than three times the national average of $1,424 per year. MoneyGeek compared averages from different car insurance companies and broke down costs by coverage level, age, driving history, credit score and location.

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Based on a 40-year-old driver with a clean record, the average cost of full coverage for car insurance in Michigan is approximately $4,333 per year. The same driver purchasing a minimum car insurance coverage will pay an average of only $2,921 a year. Since driver characteristics can have a large effect on rates, adding a 16-year-old driver to the same full coverage policy will cost an additional $8,313 per year.

MoneyGeek broke down costs to see how much is car insurance in Michigan from different companies and how the rates change based on your driving record and profile.

Average Cost of Car Insurance in Michigan: Summary

Your average car insurance costs in Michigan will be different from the premiums other people pay since rates are determined by factors like age, location, driving record and credit scores. In Michigan, poor credit scores have the biggest impact on driving records. The customer’s ability to pay balances gives the insurance company an idea of the driver’s reliability on the road.

You can click to find out more about average costs for a given driver profile.

Average Costs of Car Insurance in Michigan

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Why is Car Insurance Expensive in Michigan?

Michigan car insurance is expensive because of its no-fault insurance laws, but also due to a high rate of uninsured drivers.

You can learn more about how cost varies by state and how Michigan car insurance rates compare to other states.

Average Cost of Car Insurance in Michigan: Full Coverage vs. Minimum Coverage

The average car insurance cost in Michigan greatly changes depending on how much coverage you buy, especially if you prefer to get a state minimum liability-only insurance or a full coverage that covers both comprehensive and collision insurance. The average cost of full coverage car insurance in Michigan, which is an annual premium rate of $4,333, costs $1,412 more than the state's minimum liability policy.

Average Cost of Car Insurance in Michigan by Coverage Level

Minimum vs. Full Coverage Car Insurance Costs in Michigan - By Company

The insurance company you choose will also affect your rates. Consider whether a liability-only coverage, which has the most basic protections, already matches your needs, or if you can get a cheap full coverage that has the most comprehensive protection.

Nationwide offers the cheapest minimum coverage for $774 per year, while GEICO offers the cheapest full coverage for $2,161 per year. Farmers has the most expensive Michigan car insurance rates for both minimum and full coverage at $9,390 and $14,447, respectively.

Only military families can opt for a USAA auto insurance policy, the most affordable option for both coverage types.

Average Annual Costs of Car Insurance in Michigan - By Company

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How Much Is Car Insurance in Michigan by Age

Are car insurance rates expensive in Michigan for younger drivers? MoneyGeek’s findings show that in Michigan, younger drivers pay more in premiums due to their risk profile, than someone who has a longer driving history. That is why, having the same risk and driving experience, first-time drivers are also considered as young drivers. If it’s your first time buying car insurance in Michigan, you may see similar rates offered to you.

The cheapest option for teen drivers is to be added to their parent’s car insurance policy. While a 40-year-old driver pays roughly $4,333 for full coverage, a 16-year-old driver will pay an average of $3,980 more per year.

Average Costs of Full Coverage Car Insurance in Michigan - By Age

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  • Age
    Annual Premium
  • $8,313
  • $7,672
  • $6,816
  • $7,228
  • $6,000
  • $4,755
  • $4,398
  • $4,024
  • $3,766
  • $3,422
  • $3,168
  • 40
    $4,333
  • $3,060

How Does Driving History Affect Car Insurance Costs in Michigan?

Drivers with a bad driving record will have to pay higher insurance premiums because of their risk profile. In fact, the worse the violation is, the more likely you are to pay higher rates. A driver with a speeding ticket could be charged an average annual premium of $6,759, which costs $2,426 more than a driver with a clean record. The average costs will be even higher if you get into accidents or if you are caught driving under the influence of alcohol.

Average Costs of Full Coverage Car Insurance in Michigan - By Driving History

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  • Driving Violation
    Annual Premium
  • Safe Driver
    $4,333
  • Speeding Ticket
    $6,759
  • At-Fault Accident
    $7,248
  • DUI
    $11,525

Credit Scores and the Cost of Car Insurance in Michigan

The most important factor in Michigan when getting a car insurance policy is your credit score. You can save a significant amount if you keep your credit history in good standing. In Michigan, a person with a good credit score may get lower rates, while a person with a bad credit record may be charged extra every year.

Drivers with poor credit pay roughly $8,031 more than drivers with good credit scores, while those with excellent credit scores pay about $1,182 less than drivers with good credit scores.

Average Costs of Full Coverage Car Insurance in Michigan - By Credit Score

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  • Credit Score
    Annual Premium
  • Excellent
    $3,361
  • Good
    $4,543
  • Fair
    $5,920
  • Below Fair
    $8,234
  • Poor
    $12,574

How Much Is Car Insurance in Your City?

Car insurance costs may differ not only between but also within states. Densely populated cities, because they are prone to road accidents and vehicle theft, tend to have higher car insurance rates. Ann Arbor, with an annual car insurance cost of roughly $1,671, has the cheapest rates within Michigan. Detroit is the most expensive city offering policies with an average cost of $5,471 per year.

Average Costs of Full Coverage Car Insurance in Michigan - By City

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Frequently Asked Questions About Michigan Car Insurance Rates

Here are common questions about Michigan car insurance rates to help you decide which insurer to use when choosing a policy.

Methodology

Car insurance quotes were collected in Michigan in collaboration with Quadrant Information Services. Policies were for a 40-year-old driver with a safe driving record and full coverage unless altered by the factors described above including coverage levels, age, driving violations and credit score. The specific limits of the full coverage policy are described on our methodology page.

MoneyGeek also collected data on traffic, uninsured motorists, the urban share of the population and motor vehicle theft rates.

  • Highway traffic density was calculated with 2019 data from the Federal Highway Administration
  • Data on uninsured motorists was drawn from 2019 data from the Insurance Research Council
  • Urban share of population was calculated using the latest data from the U.S. Census Bureau
  • Data on motor vehicle theft rate was drawn from the FBI Crime in the United States Report for 2019.

About the Author


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Mark Fitzpatrick is a senior content manager with MoneyGeek specializing in insurance. Mark has years of experience analyzing the insurance market and creating original research and content. He graduated from Boston College with a Bachelor of Arts and Johns Hopkins University with a Master of Arts.


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