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

If you're thinking about relocating from Michigan to Ohio or vice versa, it is important to understand the differences in their coverage requirements. Both states require bodily injury liability per accident and per person, but the limit requirement differs by state. Additionally, Michigan requires unlimited personal injury protection per person and per accident as well as property protection. Ohio's additional requirement includes property damage liability per accident.

MoneyGeek compared the policies and requirements for car insurance in Michigan vs. Ohio. We also analyzed car insurance rates to help you decide what insurance policy is best for you.

Michigan car insurance laws require 20/40/10 in liability coverage, unlimited personal injury protection, and $1M in property protection. Meanwhile, Ohio law mandate 25/50/25 in liability coverage. For a minimum-coverage car insurance policy, Michigan drivers pay an average of $2,921 per year, while Ohio drivers only pay $487. In other words, drivers in Ohio, on average, pay less in car insurance policies than drivers in Michigan.

Michigan is a no-fault state which mandates that you file a claim with your insurance company after being in an accident, regardless of who was at fault. This policy guarantees you are covered financially after an accident, although you may have to pay higher premiums.

On the other hand, Ohio is a tort state, which means that if you cause an accident, you are responsible for its costs. As the driver at fault, you can use your liability insurance to pay for the damage, injuries, and other related expenses incurred by the other driver.

To help you find the most affordable car insurance policies with minimum coverage in Michigan and Ohio, we compared and analyzed the costs of several insurance companies. We found the cheapest policies to be:

• Cheapest in Michigan: Nationwide ($774 per year)
• Cheapest in Ohio: Erie ($274 per year)

For eligible military members and their families, USAA is the most affordable option with an average annual premium of $704 in Michigan and $238 in Ohio.

Rates vary from state to state, even with the same provider. For example, Nationwide has an annual cost of $774 in Michigan, while the same policy costs $470 in Ohio.

One of the many factors affecting your policy premium is selected coverage. The minimum coverage policy in Michigan costs about $2,921 per year, while a full-coverage policy averages at $4,333. Meanwhile, Ohio's minimum coverage costs $487, while the full-coverage policy costs $803. With this side-by-side comparison, it's evident that providers in Ohio offer cheaper rates for both car insurance policy coverage limits. Several factors determine premiums, so the actual amount may differ.

Insurance in one state may be more expensive than in another for many reasons, and it cannot be pinned on one factor. Michigan costs more because it requires drivers to have more insurance and is a no-fault state. Another reason for Michigan's higher insurance premiums is its high uninsured driver rate of 26%, which is higher than Ohio’s rate of 13%. Michigan's vehicle theft rate is also higher than Ohio's; more stolen vehicles result in costlier claims.

Another factor that could affect your final quote is the city you live. Generally, cities with lower population density have lower insurance rates than cities with a higher population. MoneyGeek identified the cheapest and most expensive cities for state minimum liability insurance in Michigan and Ohio.

Michigan

• Cheapest city: Ann Arbor ($1,083 per year)
• Most expensive city: Detroit ($3,688 per year)

Ohio

• Cheapest city: Akron ($440 per year)
• Most expensive city: Toledo ($515 per year)

Car insurance requirements are the same in every state, so the variation in prices between cities is caused by other factors such as population density.

You will need to transfer your driver's license and registration when you move from Michigan to Ohio or vice versa. You may keep your current insurer if you're satisfied with your current policy and if it provides the coverage required by your new state. Your rates may change to reflect risks and coverage requirements specific to state laws.

If you need a new insurance provider, MoneyGeek can help you find the best fit based on your driving history.

States often have different laws and prices for car insurance. To better understand the differences between car insurance in Michigan vs Ohio, MoneyGeek answers some frequently asked questions.

To calculate average car insurance rates by company and across Michigan and Ohio, 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 Michigan and Ohio were sourced from the Department of Motor Vehicles (DMV) of the respective state.