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


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ByMark Fitzpatrick
ByMark Fitzpatrick

Updated: May 20, 2024

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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.

MINIMUM CAR INSURANCE REQUIREMENTS IN MICHIGAN AND COLORADO

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

Car Insurance Resources for Michigan and Colorado

 

MoneyGeek compared the cost of auto insurance in Michigan vs. Colorado to help you locate the insurers with the most affordable coverage and the best quality service. We have provided links to resources to help you compare pricing in the two states and acquire quotes.

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MoneyGeek gathered car insurance quotes from Michigan and real insurance quotes in Colorado.

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MoneyGeek compared how car insurance premiums in Michigan and auto insurance costs in Colorado differ based on a variety of factors.

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
Company
Annual Rate

1.

USAA

$704

2.

Nationwide

$774

3.

Auto-Owners Insurance Co

$1,430

4.

GEICO

$1,488

5.

Progressive

$1,704

6.

Travelers

$2,337

7.

Mercury

$2,454

8.

AAA

$2,681

9.

Allstate

$2,834

10.

Esurance

$2,965

11.

State Farm

$3,425

12.

Hanover

$4,573

13.

Farmers

$9,390

Cheapest Car Insurance Companies in Colorado
Company
Annual Rate

1.

USAA

$295

2.

GEICO

$373

3.

State Farm

$558

4.

Nationwide

$629

5.

Travelers

$639

6.

Allstate

$748

7.

Esurance

$749

8.

Farmers

$965

9.

American Family

$1,176

10.

Progressive

$1,369

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THE CHEAPEST COMPANY FOR YOU MAY DIFFER

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
Driver
Michigan Annual Premium
Colorado Annual Premium

Minimum Coverage

$2,921

$811

Full Coverage

$4,333

$1,450

Adding a Young Driver

$8,313

$3,819

Drivers With a Violation

$6,759

$1,701

Drivers With Poor Credit

$12,574

$2,515

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
City
Average Annual Rate

Ann Arbor

$1,083

Detroit

$3,688

Grand Rapids

$1,096

Lansing

$1,218

Sterling Heights

$2,026

Warren

$2,511

Car Insurance Costs by City in Colorado
City
Average Annual Rate

Arvada

$747

Aurora

$858

Boulder

$697

Centennial

$784

Colorado Springs

$776

Denver

$810

Fort Collins

$628

Greeley

$634

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.

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.

How do car insurance laws and requirements differ in Michigan and Colorado?
Are the cheapest car insurance companies different in Michigan and Colorado?

Methodology

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 Mark Fitzpatrick


Mark Fitzpatrick headshot

Mark Fitzpatrick has analyzed the property and casualty insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. Currently, he leads P&C insurance content production at MoneyGeek. Fitzpatrick has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.