Car Insurance in Michigan vs. Colorado: Costs, Laws and Resources

Car insurance costs and requirements in Michigan and Colorado vary because they have different insurers and laws. Nationwide, for example, is the cheapest company in Michigan for minimum coverage, which costs an average of $774 per year. GEICO, on the other hand, has the cheapest basic coverage in Colorado, at $373 per year.

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Last Updated: 11/25/2022
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If you're considering relocating from Michigan to Colorado, take note that the two states have different requirements for auto insurance coverage and limits. For example, if you move from Michigan to Colorado, you'll lose the required unlimited personal injury protection. The bodily injury liability of $40,000, required in Michigan policies, will also increase to $50,000.

To help you better understand the difference between the car insurance requirements and laws in Michigan versus Colorado, MoneyGeek created this guide. We also looked into insurance pricing to locate the most cost-effective options for you.

Car Insurance Laws in Michigan vs. Colorado

Colorado’s car insurance laws require less coverage than Michigan’s auto insurance laws. Colorado only requires 25/50/15 in liability limits. Michigan, on the other hand, requires 20/40/10 in liability limits, in addition to personal injury protection and $1 million in property protection. This higher coverage limit is a major reason why the cost of car insurance in Michigan is significantly higher than Colorado: on average, drivers in Michigan spend $2,921 per year, while drivers in Colorado spend $811 per year.


Michigan Requirements

  • $20,000 bodily injury liability per person
  • $40,000 bodily injury liability per accident
  • Unlimited personal injury protection per person
  • Unlimited personal injury protection per accident
  • $1 million property protection

Colorado Requirements

  • $25,000 bodily injury liability per person
  • $50,000 bodily injury liability per accident
  • $15,000 property damage liability per accident

How Are Car Insurance Laws Enforced in Michigan and Colorado?

Michigan is a no-fault state, which means that if you live there, you must make a claim with your insurance company after an accident, regardless of who caused it. Drivers in no-fault states must have PIP coverage as part of their auto insurance plans. This gives financial protection in the event of an accident, but it could raise your premiums. In contrast, Colorado is an "at-fault" or tort state, which means that drivers who cause an accident are responsible for the damages.

Cheapest Car Insurance Companies in Michigan vs. Colorado

According to our analysis, the following are the cheapest insurance companies in Michigan and Colorado based on average minimum coverage policies:

  • Cheapest in Michigan: Nationwide ($774 per year)
  • Cheapest in Colorado: GEICO ($373 per year)

USAA is the most economical choice for qualifying service members and their families, with policies averaging $704 and $295 in Michigan and Colorado respectively.

GEICO may be the cheapest provider in Colorado, but its plans are significantly more expensive in Michigan. This demonstrates how rates can differ significantly by state.

Cheapest Car Insurance Companies in Michigan

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Cheapest Car Insurance Companies in Colorado

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Nationwide has the cheapest plans in Michigan, at around $774 per year, while GEICO has the cheapest policies in Colorado, at $373 per year, on average. These, however, are merely for minimum coverage. Your exact premium will vary depending on your area, coverage level, age, driving history and other factors. To help you locate the most economical solutions in your state, you can check the following MoneyGeek guides:

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Average Cost of Car Insurance in Michigan vs. Colorado

One of the factors that affect the cost of your insurance is the amount of coverage you have. In Michigan, for example, drivers with a basic coverage policy spend an average of $2,921 per year, while drivers in Colorado only pay $811. Meanwhile, full-coverage drivers in Michigan pay approximately $4,333 per year but only $1,450 in Colorado.

Average Cost of Car Insurance in Michigan vs. Colorado

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  • Driver
    Michigan Annual Premium
    Colorado Annual Premium
  • Minimum Coverage
  • Full Coverage
  • Adding a Young Driver
  • Drivers With a Violation
  • Drivers With Poor Credit

Why Are Car Insurance Rates More Expensive in Michigan vs. Colorado?

There are numerous reasons why auto insurance rates in one state may be more expensive than in another. Michigan, for example, is a no-fault state with a higher highway density, which translates to more potential collisions and uninsured drivers than Colorado. When you consider that Michigan also has higher minimum car insurance requirements than Colorado, it's no surprise that auto insurance is significantly more expensive.

Car Insurance Costs by City in Michigan vs. Colorado

The cost of car insurance varies greatly based on where you live within a state. In Michigan, Ann Arbor offers the cheapest car insurance rates at $1,083 per year, while Detroit has the most expensive rates at $3,688 per year. As for Colorado, the cheapest car insurance rates can be found in Fort Collins at $628 per year and the most expensive in Aurora at $858 per year.

Since car insurance requirements do not differ within a state, living in a more densely populated area is more likely to affect your rate.

Car Insurance Costs by City in Michigan

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Car Insurance Costs by City in Colorado

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Moving Between Michigan and Colorado? What to Know

You'll need to update your driver's license and registration if you're moving from Colorado to Michigan or vice versa. If your current insurer can still provide you with sufficient protection, you may be able to keep it. Your rate, however, may change to reflect the risks and coverage requirements of your new state.

If you do need to switch insurers, MoneyGeek has information to help you locate one that best fits your driving needs.

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    Use MoneyGeek’s car insurance calculators for Michigan and Colorado

    The Michigan auto insurance calculator and the Colorado car insurance calculator available on MoneyGeek will rapidly calculate the cost of coverage in each state.

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    Learn about car insurance for high-risk drivers in Michigan and Colorado

    High-risk drivers are more likely to pay higher insurance premiums or be turned down by certain insurance companies. Furthermore, persons who have committed major driving offenses, such as driving while intoxicated (DUI), must submit an SR-22 in Michigan or an SR-22 in Colorado.

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    Figure out your options for temporary car insurance in Michigan and Colorado

    There are ways to get temporary auto insurance in Michigan or temporary car insurance in Colorado if you're only in the state for a short time.

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    If you’re a low-income driver, see if Michigan or Colorado offer car insurance programs

    Neither state offers state-funded low-income car insurance programs, but you can still save money by looking for low-income car insurance in Michigan or low-income car insurance in Colorado.

FAQs About Michigan and Colorado Car Insurance

The requirements and costs of car insurance vary significantly by state. MoneyGeek answered some of the frequently asked questions about the differences between car insurance in Michigan and Colorado.


To calculate average car insurance rates by company and across Michigan and Colorado, MoneyGeek collaborated with Quadrant Information Services to collect auto insurance quotes from both locations. We used a sample profile for a 40-year-old driver with a clean driving record and minimum coverage unless modified by criteria like coverage level, age, driving offenses and credit score. Learn more about how costs are calculated in our MoneyGeek car insurance methodology.

Minimum car insurance requirements by state were sourced from the Department of Motor Vehicles (DMV) of the respective state.

About the Author


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.